ISA or Current Account on £13500

Archi_Bald

I notice the absence of Halifax Reward in your merry-go-round. £60 a year left unclaimed. Might or might not rock your boat.

SmithR

so if i open all these current accounts, and transfer money in and straight back out at the start of the month the banks are happy with that... no comeback

i.e. the the tsb just rotating the £500's
i.e. the First Direct current account transferring £1000 in and out every month to waiver the £10 charge, and means i can open a First Direct Regular Saver.
i.e. the Halifax deposit £750 each month and take it straight back out, and setup two direct debits to get the £60 a year
i.e the nationwide flex direct deposit £2500 and then £1000 in and straight back out to meet the requirements,

is it just as simple as transfer in transfer out

innovate

Essentially yes though you want some refinements perhaps. You don't need to deposit £1K into FD - just put £1 into an everyday saver. You also want to skim off interest from the TSBs and the FlexDirect every month and put it somewhere it earns interest.
Lots of people have been doing this sort of thing for years, don't worry. You just need to have your own records of what money you have where and when.

RandS

Santander at the least, I suspect the other banks also. state that internal transfers do NOT count as fulfilling the requirement of payments in. that is if you are required to pay £500 into a current account to comply with its rules. the £500 has to come from a different source NOT a different account in the same bank.


Can you get over this...of course you can..
1. For example: Open 2 accounts
2. Txfr from acc 1 to acc 2 on the first of the month, set up a standing order its easier in the long run.
3. txfr from acc 2 Back to acc 1 on the second of the month.


Just add as many accs as you want, simply making sure that each acc holds the max £s allowable and that your txfrs finish off with the money back to where it started at the end, ready for the next month. its simples!!!!

SmithR

Update on this nearly there opened all or most of the accounts,
1. TSB I'm still awaiting post with bank details
2. First Direct you have t have a 1st account, I tried opening an every day e saver, but it wouldn't let me open a regular savers account all setup now and £300 is in the savers account, also I read so where that on the 1st account the is free to new customers for 6 months
3. Nationwide still awaiting post with bank details
4. At the moment most of my money is just sitting in my Santander 123 account awaiting transfers

YorkshireBoy

SmithR wrote: »

can i ask how you have worked out roughly that ill get
"The NW ISA would generate roughly £203, and the santander account £162" please

I don't think anyone's answered this?


£15,000 x 2.5% / 12 x 6.5 = £203.12
£15,000 x 3% / 12 x 5.5 x 0.8 = £165

newuser78

I considered TSB current account but they pay interest on balances of up to 2,000 so go over that, no interest is paid. Coupled with a standing order of minimum £500/month, it doesn't seem much surely.

e.g. 2% tax-free on a £15,000 vs 4.89% tax-able on a £2,000

Unless I am mistaken??

Eco_Miser

Why not 2% tax-free on a £13,000 plus 4.89% tax-able on a £2,000?
or even 2% tax-free on a £11,000 plus 4.89% tax-able on a £4,000, since TSB allows two accounts.