5% savings loophole on this weeks MSE newsletter

her_up_north

just done this last week...opened 1 nationwide and 2 tsb accounts....so have put £2 k in each....leave there for 1 week...and then on 1st june move the money back to my regular account.....£1k back and forward to nationwide and 2x£500 back and forward to tsb all by standing order just set up today

dingdong3000

I've just opened TSB accounts and looking to get nationwide in next few days.

This is a stupid question but just wondered if i opened this many current accounts in succession will it have any effects on me to my name anywhere?

soulsaver

dingdong3000 wrote: »

I've just opened TSB accounts and looking to get nationwide in next few days.

This is a stupid question but just wondered if i opened this many current accounts in succession will it have any effects on me to my name anywhere?

No, in a word.

p00hsticks

her_up_north wrote: »

just done this last week...opened 1 nationwide and 2 tsb accounts....so have put £2 k in each....leave there for 1 week...and then on 1st june move the money back to my regular account.....£1k back and forward to nationwide and 2x£500 back and forward to tsb all by standing order just set up today

But surely to keep earning the interest you need to leave the £2k in the TSB and Nationwide accounts, not take it out almost stright away ? There's no point having the accounts empty for three weeks a month - 5% interest on nothing is still nothing

bsms1147

her_up_north wrote: »

just done this last week...opened 1 nationwide and 2 tsb accounts....so have put £2 k in each....leave there for 1 week...and then on 1st june move the money back to my regular account.....£1k back and forward to nationwide and 2x£500 back and forward to tsb all by standing order just set up today

Why would you move the money back to your 'regular account' that presumably pays less than 5% interest?

dingdong3000

soulsaver wrote: »

No, in a word.

Thanks for that. Congrats on your 1k post! :T

N1AK

Quite tasty to be able to get nearly £20k (for a couple) into instant access savings at 5% (better than 3% with santander by £320 a year after tax!). Suffice to say I've been on an account opening spree

jimjames

bsms1147 wrote: »

Why would you move the money back to your 'regular account' that presumably pays less than 5% interest?

This may not apply to the person posting but there does seem to be a perception in some posts that they can get the full interest on the money by it being in the account on one day at the end of the month.

Often seems to apply to ISAs where people seem to think that they will get a year's interest just by having the money in the account by the start of April. Quite why anyone expects to be paid interest on money that is not in an account beats me.

innovate

jimjames wrote: »

Quite why anyone expects to be paid interest on money that is not in an account beats me.

Because they have never been taught anything about interest rates (and inflation and savings and investment) in school?

eskbanker

Going back to the thread title, MSE probably don't help by referring to 'loopholes' as if there's something underhand and devious that allows savers to circumvent normal rules!