Monthly pay-in requirement. Loophole?

James_Bond

Hi there,

I notice that a lot of the best-paying savings accounts (santander 123 etc) require a £500 / £1000 pay-in per month. This requirement is presumably to ensure that your wages are paid into the account and therefore the account is your main current account.

However, I only have a lump-sum to invest and have no monthly income. ( I am also a lower rate taxpater so I would not have to pay any interest on my savings.)

My question is... What is to stop me opening two top-paying current accounts from different banks, and creating a standing order to each account?

For instance:

Account A : Monthly standing order of £1000 to account B.
Account B: Monthly standing order of £1000 to account A.

Or do the t&cs of the top current accounts exclude standing orders in regards to the minimum monthly pay-in?


Many thanks in advance for any replies. :money: :beer:

bsms1147

Nothing to stop you as long as the transfers are not within the same bank, and it's what a lot of people here do.

It doesn't even have to be £1000 (or whatever stated amount) in one go; as an extreme you could send the same £1 back and forwards 1000 times and meet the requirement, though practically speaking that's obviously not feasible.

James_Bond

Excellent! Seemed too good to be true.

rb10

bsms1147 wrote: »

Nothing to stop you as long as the transfers are not within the same bank, and it's what a lot of people here do.

In some cases (e.g. Lloyds Banking Group), transfers withinb the same bank are fine.

Archi_Bald

No loopholes. You just comply with the T&Cs if you want the benefits of one of these accounts. No current account T&Cs stipulate anything about wages or salary.

calypso_rhapsody

Join the club - lots of us do this!

scragend

Be aware though that for some accounts you might need to have a certain number of Direct Debits going out each month to qualify for the reward/interest.

BobQ

James_Bond wrote: »

Excellent! Seemed too good to be true.

The important thing is to comply with each account's T&Cs. If it says you have to pay in X per month from another bank that is what you must do. If it requires this to be salary/pension etc then that is what you must do.


Many of us feed accounts by circulating money from one account to another.

jimjames

James_Bond wrote: »

Excellent! Seemed too good to be true.

Definitely not too good to be true and not a loophole either. Just one way of complying with their conditions.

Mine moves between 3 accounts.

£750 requirement for Halifax
£1000 for Nationwide
£1000 for Santander

So £500 cycles between all 3 twice a month