Nationwide Current Account

Meat

Hi, I'm new to this and want to throw this question open to the floor.
My daughter has £3000 saved for Uni but does not need the money for 12 months. I want to maximise her savings and have seen that the Nationwide is offering 5% on £2500 for a 1 yr term providing £1000 is paid in each month. My question is - is it ok to set up a direct debit from the account effectively paying £1000 to another bank account and that account paying back the £1000 either the same day or a day later in the same month, thereby keeping the balance in the Nationwide account at the maximum of £2500 each month?
I'd be grateful for your responses?

innovate

Yes, plenty of people here doing this.

Gromitt

Yes, but they don't use direct debits, but standing orders (as typically, only companies can setup DDs)

I find it easier to just login once a month, transfer 1K in, and then transfer it back out again. Takes about 2 minutes per month.

Meat

Thanks for the confirmation, just want the best for my daughter :-)

jimjames

Yes that is fine.

It just has to be a bank other than Nationwide. It is also a standing order you'd normally use but the principle is the same.