How to get 7.29% on £2,500 by using two different current accounts

r2d2c3p0

I read this article about drip feeding deposits and daisy chaining them across accounts and thought it deserved a wider audience.

Has anyone done this? Sounds good (but complicated!) maybe it's one for MSE Towers to take a look at?!

http://www.reddit.com/r/UKPersonalFinance/comments/1cv1qs/how_to_get_729_on_2500_by_using_two_different

Any thoughts?

innovate

Nothing new to this forum, except that many here have been "doing" the Halifax fivers long before the Nationwide FlexDirect came on the scene. If it's new to you, consider doing it. Though there are big T&C changes imminent at Halifax (see their web site), you need to make sure you understand them.

Cpu2007

Is it there any good article that explains how drip feeding works? I have read a few in here, I understand what they do but can't understand the logic and how the return profit is actually calculated.

innovate

There's one in the context of Regular Savings accounts, but the principle is essentially the same for all types of interest bearing accounts where you can't, or don't want to, make a lump sum deposit.

http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#dripfeed

pqrdef

r2d2c3p0 wrote: »

Any thoughts?

(1) don't fund your FlexDirect from your FlexAccount, the £1000 has to come from somewhere else

(2) don't set up a big SO to go out on payday. In principle at least the money needs to be in your account by close of business the day before. Many people don't realise they're relying on their unauthorised overdraft to get away with this.