Tsb plus account 5%

saintalan

Interest paid on max of £2000 per month balance

bsms1147

AdamMc90 wrote: »

Hi

Would I be able to transfer monthly savings into this account and use the 5% interest rates instead of transfering to my ISA at a much lower rate??

I'd be looking at depositing £1000 a month and just leaving it in there until I come to buy a house later this year. I feel as if I'm missing something!!

Yes, you'll only get interest on the first £2,000 though (so your first two deposits). If you open a second account you can get interest on a further £2,000, though will have to remember to have a minimum of £500 going into each account each month (it can come straight back out again).

You'll need to use further accounts at different institutions to gain interest on the remaining £8,000, Nationwide being the next option for £2,500 of it.

DStu

saintalan wrote: »

I have read whole thread but didn't see reference to
first condition:

"A Classic Plus account gives you the benefit of credit interest if you comply with the following conditions:
Account opening - You must have a current account that works with Plus."

Does this mean only for existing customers, athough thats not how the promotion reads as open to existing and new.

Thanks

Alan

I would suggest that only applies to those upgrading an existing TSB account.
As it is sectioned under "Account Opening". Whereas us new account holders have just opened a Classic Account with Plus all in one go.

bsms1147

saintalan wrote: »

I have read whole thread but didn't see reference to this from the T&Cs first condition:

"A Classic Plus account gives you the benefit of credit interest if you comply with the following conditions:
Account opening - You must have a current account that works with Plus."

Does this mean only for existing customers, athough thats not how the promotion reads as open to existing and new.

Open to all and sundry.

Badly worded term; they're implying that a 'Classic' account is their standard one, to which you can add 'Plus' and get benefits (5% interest) providing you meet the criteria. And that Plus can only be added to a Classic account.

In real life it is opened as a Classic Plus. Meet the stated criteria and it'll be fine.

AdamMc90

bsms1147 wrote: »

Yes, you'll only get interest on the first £2,000 though (so your first two deposits). If you open a second account you can get interest on a further £2,000, though will have to remember to have a minimum of £500 going into each account each month (it can come straight back out again).

You'll need to use further accounts at different institutions to gain interest on the remaining £8,000, Nationwide being the next option for £2,500 of it.

Excellent. I was a bit unsure as it seemed a bit too good to be true! Thanks for your help

AdamMc90

Couple more questions, sorry if its already been answered but its a big thread.

If I have over £2000 in the account do you still receive the 5% interest rate? Eg deposit 2k when opening the account and then 500 a month deposited will I still receive interest on the initial 2k?

Also as its 5% AER what is the monthy interest paid on a 2000 balance? Does it work out at 0.4% a month so therefore 5% over the year?

Thanks

bsms1147

AdamMc90 wrote: »

Couple more questions, sorry if its already been answered but its a big thread.

If I have over £2000 in the account do you still receive the 5% interest rate? Eg deposit 2k when opening the account and then 500 a month deposited will I still receive interest on the initial 2k?

Yes

Also as its 5% AER what is the monthy interest paid on a 2000 balance? Does it work out at 0.4% a month so therefore 5% over the year?

Thanks

4% after basic rate tax, around 0.327% a month or 22p a day.

matty_544

Just registered both of my accounts for gross interest over the phone

LittleVoice

bsms1147 wrote: »

4% after basic rate tax, around 0.327% a month or 22p a day.

5% AER = 4.89% gross

months vary in length but average monthly interest on £2K
= £8.15 gross, £6.52 nett (just short of 22p/day nett)

AdamMc90

Again - thanks a lot! Think I'm up to date now. Worked out I'll receive an extra £5-6 a month using this rather than my current (poor) ISA. Happy days.