5% Savings Loophole

inittogether

INTERESTED wrote: »

Hi - anyone any idea how this will work - and more importantly will the tax free element of £1000 interest be applied to current accounts - or just savings accounts?


Most of my money is now in high interest current accounts - it would be great if it did apply - but suspect they are going to make financial institutions define savings accounts very specifically.


Thanks

This article seems to have all the answers. Can't post a link.

.thisismoney.co.uk article-3010018

Eco_Miser

I do all my transfers on the same day, there's no need to be £500 down for even a day.

colsten

inittogether wrote: »

This article seems to have all the answers.

it's a good article but I wouldn't go as far as saying it has all the answers, or asks all the questions. For example, those planning to take out the HTB ISA would be well advised to consult alternative sources, and there should be mention of the change in pensions legislation and possible impact on income and tax.

zoebel

I want to open 1 Nationwide account and 3 TSB accounts (1 for me, 1 for my husband and 1 joint) all at the same time. I also want to stooz credit cards.

Will opening all these new current accounts all at the same time have an adverse impact on my credit score so much so that it affects my ability to open new credit cards in the coming months? Therefore, would you say that the additional interest earned by having the additional current accounts is self defeating over having a low rate ISA and not being rejected for high balances etc on the credit cards?

Herbalus

zoebel wrote: »

I want to open 1 Nationwide account and 3 TSB accounts (1 for me, 1 for my husband and 1 joint) all at the same time. I also want to stooz credit cards.

Will opening all these new current accounts all at the same time have an adverse impact on my credit score so much so that it affects my ability to open new credit cards in the coming months? Therefore, would you say that the additional interest earned by having the additional current accounts is self defeating over having a low rate ISA and not being rejected for high balances etc on the credit cards?

No, and no again.

zoebel

Herbalus wrote: »

No, and no again.

Please provide your rationale for being so sure of yourself in this regard.

jimjames

zoebel wrote: »

Please provide your rationale for being so sure of yourself in this regard.

Maybe if you explained why you thought there could be a problem it could be addressed.

Guess a lot depends on your circumstances.

Herbalus

zoebel wrote: »

Please provide your rationale for being so sure of yourself in this regard.

I'm up to about 12 current accounts that I can think of, and many posters have reported opening similar numbers of accounts without a detrimental effect on credit file. Personally in the last 4 months I've opened 2 new current accounts, got a mortgage, and was accepted for my third credit card last week.

Getting a current account with no overdraft is clearly not going to have the same effect as a credit card with a £10k limit. You're only opening 3 accounts in your name, so not a huge amount.

Your ability to get the BT cards for stoozing is more likely to be dependent on other circumstances than a few bank accounts, especially if you're not going to be applying for the CCs for a few months.

zoebel

That's great. Thanks for the detailed explanation.

zoebel

jimjames wrote: »

Maybe if you explained why you thought there could be a problem it could be addressed.

Guess a lot depends on your circumstances.

Please reread my original post.