I have simple needs, what is the best ISA for me?

innovate

Of course you can.

As I said in my previous post. Shuttle £1K between your FD and HSBC account (by SO, or manually) once a month and you are done. Trust me, I have been doing this sort of thing for ages, and it works great.

You should also look to adding a Halifax Reward account to your money-shuffle, btw. You have enough cash to make it worth your while. If you get it right, you can collect £60 a year (or £75, if you give them an R85).

innovate

kkid wrote: »

I can just send the £1000 to and from accounts each month and as far as the banks are concerned, I am paying them £1000 continuously?

yes you can

kkid wrote: »

Surely this can't be true, branks must be too smart to not notice this.

You can be sure they notice it, but they don't object to it as long as you do no breach the T&Cs. Sending money from one current account to another certainly does not breach any T&C.

kkid

innovate wrote: »

Of course you can.

As I said in my previous post. Shuttle £1K between your FD and HSBC account (by SO, or manually) once a month and you are done. Trust me, I have been doing this sort of thing for ages, and it works great.

You should also look to adding a Halifax Reward account to your money-shuffle, btw. You have enough cash to make it worth your while. If you get it right, you can collect £60 a year (or £75, if you give them an R85).

This seems way too good to be true. And you know what they say, if something seems too good to be true then it probably is.

I cannot see how a bank would not notice that you are doing this and have it as a condition in their terms and conditions.


Nevertheless, let's see if I understand you fully:

• I start with £2500 in my HSBC account (This account is therefore just like a piggy bank at the moment, just to HOLD money not give me anything in return).
  [HSBC = £2500, NW = N/A]
  
• I open a FlexDirect account and put the first £1000 in (For the first month's condition to be met)
  [HSBC = £1500, NW = £1000]
  
• I send over £1000 from HSBC for the second month
  [HSBC = £500, NW = £2000]
  
• Every month after, as I have less than £1000 in HSBC, I send £1000 back to HSBC from NW and then send it back again so that the "Money in" in NW is £1000 (Even though "Money out" is also £1000)
  [Each month HSBC = £500, NW = £2000 overall but I still get 5% interest]

Is this right?

So rather than the net movement of money having to be £1000 into NW, it merely is concerned with the "Money in" - therefore even if "Money out" was £30000000 but I did the little switcharoo the account would stay open (Well, I would be in insane debt, but you know what I mean lol )

AndyPK

Yes they just concerned with the money in.

kkid

Also, just noticed.

This was a complete coincidence, didn't realise until looking over the nationwide website again. The £2500 balance is likely to rise as I earn money from wages etc but the limit on the 5% interest is a balance of £2500. Do I earn 0% interest on anything over £2500 then? In this case is it best to send all of my "overspill" money into their ISA that I mentioned earlier?

Or should I open a Santander 123 account as a second current account for this money (As it has the second highest interest rate) and do the same switcheroo trick to keep it open? (Or get rid of HSBC and do the switcheroo between Santander and Nationwide).
Sorry, just realised that this account requires 2 direct debits. I will be in halls first year so won't have any water bills etc to be paying separately so won't have these direct debits.
And the 3% interest is only on balances over £3000 which i won't have. Officially ignoring Santander 123 now

I've never really researched banking before and this is actually making me excited

kkid

Is there a special name for shuttling the money between accounts for this purpose? I assume it has a name

AndyPK

If you have expensive phone contracts the Santander account maybe for you because the cash back on it will cover the account fee.

Otherwise Lloyds maybe better as that is the same rate between 3k and 5k max.

kkid

AndyPK wrote: »

If you have expensive phone contracts the Santander account maybe for you because the cash back on it will cover the account fee.

Otherwise Lloyds maybe better as that is the same rate between 3k and 5k max.

I'm with Ovivo so no phone fees

I haven't looked at Lloyds yet. Taking a look now...

AndyPK

Santander and Lloyds do pay interest below 3k just not the top rate.
The good thing is that it is not limited to 1 year.
So you shouldn't dismiss it. Open and build the money up.

ColdIron

kkid wrote: »

I've never really researched banking before and this is actually making me excited

By George, I think he's got it