5% Savings Loophole

stringer_bell

I have opened up a TSB 5 percent and a TESCO current account, once approved I shall open up a second tesco current account. I will also apply from internet saver

I presume club lloyds and nationwide will be next, any more I have missed?

caveman38

As the preferred method is to draw the interest from each account monthly. Can you tell me what rate they give say on a 5% each month. I assume that it isn't 5%/365*30 as that would exceed 5% when reinvested in another account.

YorkshireBoy

stringer_bell wrote: »

I have opened up a TSB 5 percent and a TESCO current account, once approved I shall open up a second tesco current account. I will also apply from internet saver

I presume club lloyds and nationwide will be next

Why are you opening 3% paying Tesco accounts when you have already identified 2 other accounts paying more, at 4% and 5% respectively?

any more I have missed?

The first post in this very thread links to an article on the main site listing all the high interest current accounts available. Maybe click it and take a look?

YorkshireBoy

caveman38 wrote: »

As the preferred method is to draw the interest from each account monthly. Can you tell me what rate they give say on a 5% each month. I assume that it isn't 5%/365*30 as that would exceed 5% when reinvested in another account.

5% is an AER, a notional rate. You always earn interest at the gross p.a. rate (at 5% AER this is 4.89%).


So, and taking TSB as an example, for a static max balance of £2K and an average month of 30 days, your average monthly interest is...


£2,000 x 4.89% / 365 x 30 = £8.04 gross.

stringer_bell

YorkshireBoy wrote: »

Why are you opening 3% paying Tesco accounts when you have already identified 2 other accounts paying more, at 4% and 5% respectively?The first post in this very thread links to an article on the main site listing all the high interest current accounts available. Maybe click it and take a look?

I have a large surplus of cash, so I will be able to fill them all. I opened up the ones which don't require any direct debits or monthly funding, just so its easier for the time being

ceredigion

caveman38 wrote: »

As the preferred method is to draw the interest from each account monthly. Can you tell me what rate they give say on a 5% each month. I assume that it isn't 5%/365*30 as that would exceed 5% when reinvested in another account.

The other way is to leave the accounts a few 10s short of max. Then set up text alert to let you know when the interest has accumulated to the desired figure then transfer out a few 10s again.

Eco_Miser

Lady_Inversneckie wrote: »

Oh sugar :-)

Have I opened the wrong accounts, I opened two current accounts with Tesco to get 3% on £3,000. Is this correct?

That gets you around £180 a year, bu it doesn't let you generate DDs.

Lady_Inversneckie wrote: »

I should now open a Tesco Savings Account x 2 ? to satisfy the d/d rules for Lloyds account.

That's it. The Internet Saver and the Online Saver, if I remember correctly.

caveman38

Although not switching, my wife is firstly opening a FD current account. As an account holder myself, I get a recommending bonus of £50.
Do any of these type of incentives exist for accounts I will open for the 5% loophole and subsequently recommend for her accounts albeit only days apart.

YorkshireBoy

caveman38 wrote: »

Do any of these type of incentives exist for accounts I will open for the 5% loophole and subsequently recommend for her accounts albeit only days apart.

Yes they do, but require a switch.

digitalgnome

Due to illness and working part time self employed ,when i can, I currently don't have a fixed income or income amount but with the support of family I have managed to save what income I have been getting ready for when I get back on my feet fully.

The problem is there have been months where I have relapsed and my self employed income has just been below £500. I think i would have incurred penalties on some accounts.

So I thought of going for the Tesco accounts as they don't require a minimum pay-in each month and 3% is better than nothing especially whilst I am below the tax bracket.

But correct me if I am wrong they don't require monthly pay in's at all?

So cant I just put my savings in two and leave them without having to pay money from one to the other each month?

Thanks for reading