5% Savings Loophole

Spidernick

Kendall80 wrote: »

Mine too. Took me 2 weeks to get her to do the FD switch. I even practiced copying her voice at one point. Fortunately it didn't come to that.

Kendall80

I'm offended! I look much better than that in a wig and make-up!

Rosie1980

Finally talked my Mum into doing this with her savings. I sat with her to set it all up and we successfully managed Tesco. BoS was having technical issues so moved onto Lloyds and successfully opened that. Then into Halifax and got as far as giving a password before an error message came up and now we have no idea whether the account is open or not, so I'll wait until tomorrow for email confirmation and then I'll try again. We then went back to BoS who on entering her name said she'd already opened an account with them recently so her application couldn't be progressed. I realise that Lloyds, Halifax and BoS are all part of the same group but has anyone else had this issue? We hadn't entered any details into BoS first time round as the application page wouldn't open.

dyoung87

Sorry for asking a possible silly question, been through a few pages and can't find the answer just yet. I understand to meet the minimum pay-in's for some accounts and i can bounce the money in and out again to tick that box. But say just for Eg, I have two accounts that pay 5% on upto £2,000. How long does that £2,000 have to be in the account to gain the months interest. Or can that also be part of the money bouncing in an out?

jimjames

dyoung87 wrote: »

Sorry for asking a possible silly question, been through a few pages and can't find the answer just yet. I understand to meet the minimum pay-in's for some accounts and i can bounce the money in and out again to tick that box. But say just for Eg, I have two accounts that pay 5% on upto £2,000. How long does that £2,000 have to be in the account to gain the months interest. Or can that also be part of the money bouncing in an out?

Not really sure of the question, the interest is paid for the days the money is in the account so you'll get the interest for the month if the £2000 is in there. Or are you expecting interest to be paid on money when it's not in the account?

Eco_Miser

dyoung87 wrote: »

But say just for Eg, I have two accounts that pay 5% on upto £2,000. How long does that £2,000 have to be in the account to gain the months interest. Or can that also be part of the money bouncing in an out?

The full month, but yes it can be part of the money bouncing about, since it can go out and be back in on the same day with faster payments, or standing orders on the same day.

Interest is earned on the balance at the end of each day, so if you did happen to leave the account almost empty overnight for one night as Martin appears to suggest in the article you'd still get 29 or 30 days interest.

Edited to add the part in italics

ceredigion

Eco_Miser wrote: »

Interest is earned on the balance at the end of each day, so if you did happen to leave the account almost empty overnight you'd still get 29 or 30 days interest.

Within the context of this thread and in particular the question you quoted ,that has got to be the most unhelpful paragraph you could imagine.


I understand full well the concept of exploiting cut off times.

Eco_Miser

ceredigion wrote: »

Within the context of this thread and in particular the question you quoted ,that has got to be the most unhelpful paragraph you could imagine.

No. I imagine the paragraph above to be much more unhelpful.

ceredigion wrote: »

I understand full well the concept of exploiting cut off times.

I wasn't talking about that. dyoung87 doesn't seem to have grasped the concept of daily interest, so I was pointing out that having the account full for nearly a month gets nearly a month's interest.

colsten

Which is it then - leaving the account full or almost empty?

Eco_Miser wrote: »

I was pointing out that having the account full for nearly a month gets nearly a month's interest.

Eco_Miser wrote: »

if you did happen to leave the account almost empty overnight you'd still get 29 or 30 days interest.

Eco_Miser

I intended to mean having the account full for most of the month but nearly empty overnight on the one night between standing orders as suggested in Martins article. Re-reading it now I can see a different, unintended, interpretation.