5% Savings Loophole

Futuristic

digitalgnome wrote: »

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

Correct, no requirements of direct debits or monthly pay in. It's currently the only interest paying account with no requirements!

Eco_Miser

digitalgnome wrote: »

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.

Only if you were careless and failed to withdraw the necessary sum and pay it back in.

For 5 years I had NO income, except interest/dividends/loan repayments (very irregular cashflow) but I still managed to pay the required minima to multiple accounts, by moving money between the accounts..

digitalgnome

Eco_Miser wrote: »

For 5 years I had NO income, except interest/dividends/loan repayments (very irregular cashflow) but I still managed to pay the required minima to multiple accounts, by moving money between the accounts..

I thought some people had trouble opening accounts due to employment status etc
If thats fine to do all the better I would go for an account with better interest if i can

jimjames

digitalgnome wrote: »

I thought some people had trouble opening accounts due to employment status etc
If thats fine to do all the better I would go for an account with better interest if i can

Some people do have problems opening accounts but that's a separate issue to how to meet the funding requirements.

Eco_Miser

digitalgnome wrote: »

I thought some people had trouble opening accounts due to employment status etc
If thats fine to do all the better I would go for an account with better interest if i can

Some people have trouble, I haven't.
Perhaps it helps that I've had one of my accounts since 1971, that I've been opening other accounts to take advantage of various offers for a long time, that I own my own home, that I'm retired, not unemployed (even before I was 65), and my identity can be successfully checked online.

TSB don't require DD's, only require £500 a month paid in, and are looking to expand their customer base. There's little downside to applying - just a credit search, and the possibility of a soul-crushing "No".

digitalgnome

Eco_Miser wrote: »

There's little downside to applying - just a credit search, and the possibility of a soul-crushing "No".

Your right! I don't know why I am so worried about a turn down, there's no shame in it, If I do I can just try somewhere else in the meantime and, if I want to, try again later when I can meet their requirements.

Thank you all

:T

Maggie_Moxom

Blonde lady asking: the 5% savings loophole looks interesting but I don't understand how to put up to £30,000 into this loophole from your directions. It looks like £1000 is going into different banks and just doing the rounds to get interest. How do I invest £30,000?

savings_my_hobby

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, any more I have missed?

Bank of Scotland
Santander
Halifax reward

ceredigion

Maggie_Moxom wrote: »

Blonde lady asking: the 5% savings loophole looks interesting but I don't understand how to put up to £30,000 into this loophole from your directions. It looks like £1000 is going into different banks and just doing the rounds to get interest. How do I invest £30,000?

You put
2.5k in nationwide @5%
2k in tsb @5%
5k in Lloyds 5%
15k in bos 3%
20k in Santander @3%


that is 44.5k in total

Eco_Miser

ceredigion wrote: »

You put
2.5k in nationwide @5%
2k in tsb @5%
5k in Lloyds 5%
15k in bos 3%
20k in Santander @3%


that is 44.5k in total

And 6k in Tesco, making 50.5k total.
The £1000 (Lloyds needs £1500 btw) circulates though all the accounts in one day to meet the pay-in requirement.