Best Place for £5,000 Savings - ISA or High Interest Current Account?

bjblackmore

badger09 wrote: »

The heading from that link reads:
PLUS Account - Important Information - No longer on sale

Ha, I totally missed that! Was looking above at the "The New Classic Plus Account" heading. Good spot!

Archi_Bald

bjblackmore wrote: »

Having said that, the 1-2-3 account & TSB Plus account pages say "Fund the account with £500 a month." & "We ask that you put a minimum of £500 per month into your account" So I could transfer £1000 from cahoot into first 1-2-3 account, and £500 from cahoot into the second 1-2-3 account. The Lloyds club account requires £1,500 per month, so that might be harder to do.

You can use the same £500 to satisfy all accounts. E.g. £500 from Cahoot to Lloyds, then Lloyds to TSB 1, then TSB 1 to TSB 2, then TSB 2 to TSB 3, then TSB 3 to Lloyds, then Lloyds to Santander, then Santander to Lloyds, and finally Lloyds to Cahoot. Though you don't have to involve Cahoot at all, you could just use the Lloyds, TSB and 123 accounts.

You can simplify it a little by shifting the same £1,500 around (even into accounts that only ask for £500). Or complicate it even more by shifting less than £500 at a time.

The options are endless, and easy to meet if you have money sitting in accounts that you effectively use as savings accounts.

bjblackmore

Archi_Bald wrote: »

You can use the same £500 to satisfy all accounts. E.g. £500 from Cahoot to Lloyds, then Lloyds to TSB 1, then TSB 1 to TSB 2, then TSB 2 to TSB 3, then TSB 3 to Lloyds, then Lloyds to Santander, then Santander to Lloyds, and finally Lloyds to Cahoot. Though you don't have to involve Cahoot at all, you could just use the Lloyds, TSB and 123 accounts.

Does TSB > TSB satify the funding requirements? From what eskbanker said above, 1-2-3 > 1-2-3 isn't allowed, so just wondering if TSB have the same restrictions? If so, maybe do Cahoot > TSB 1 > Lloyds > TSB 2 > Santander > TSB 3?

Snowbelle

bjblackmore wrote: »

Does TSB > TSB satify the funding requirements? From what eskbanker said above, 1-2-3 > 1-2-3 isn't allowed, so just wondering if TSB have the same restrictions? If so, maybe do Cahoot > TSB 1 > Lloyds > TSB 2 > Santander > TSB 3?

Yes it does and you can have 6 accounts altogether 2 for you, 2 for your wife and 2 joint.

Eco_Miser

TSB and Lloyds currently count internal transfers for the funding requirement.

When you've filled the TSB accounts, note that Lloyds have a monthly saver accepting up to £400/month at 4%AER.

eskbanker

bjblackmore wrote: »

Oh right, so Sandander won't allow you to pay £1,500 wages into first 1-2-3 account, and then transfer £1000 out into another 1-2-3 account?

bjblackmore wrote: »

Does TSB > TSB satify the funding requirements? From what eskbanker said above, 1-2-3 > 1-2-3 isn't allowed, so just wondering if TSB have the same restrictions?

Just to be completely clear about this, nobody is saying that Santander don't allow you to transfer between 123 accounts, their restriction is that doing so doesn't fulfil their requirement for monthly funding of the accounts for interest-earning purposes. Slightly pedantic distinction perhaps but best to be clear!