5% Savings Loophole

caveman38

I have made a note on my intended plan:


"Tesco Savings for pulls (DD's) only one DD per other inst. if 2 req. open extra Tesco Saver"


does that mean that I can only draw funds as a DD from one bank only?

YorkshireBoy

caveman38 wrote: »

I have made a note on my intended plan:


"Tesco Savings for pulls (DD's) only one DD per other inst. if 2 req. open extra Tesco Saver"


does that mean that I can only draw funds as a DD from one bank only?

No (if I've understood the question correctly!)..........

caveman38

Thanks YB. I can't think why I wrote the note then.

colsten

You probably meant that if 2 DDs are required, you'd need 2 different savings accounts. As 2 DDs pulled into the same savings account at different dates will probably just count as 1 DD.

caveman38

colsten wrote: »

You probably meant that if 2 DDs are required, you'd need 2 different savings accounts. As 2 DDs pulled into the same savings account at different dates will probably just count as 1 DD.

That's probably it. Thanks.

YorkshireBoy

colsten wrote: »

You probably meant that if 2 DDs are required, you'd need 2 different savings accounts. As 2 DDs pulled into the same savings account at different dates will probably just count as 1 DD.

Although having said that, someone on here claimed they used just such an approach successfully with both TSB (for the recent switching incentive) and Halifax (for their Reward payments). With so many other options available, I wouldn't risk it personally.

colsten

Yes I remember seeing that, and no I wouldn't chance it either as it's no sweat to open and use a second savings account.

themanfromamarillo

Has anyone applied for a mortgage having used the 5% loophole? I'm concerned that having lots of accounts open would put lenders off when I apply for a mortgage in 2 years or so.

jimjames

themanfromamarillo wrote: »

Has anyone applied for a mortgage having used the 5% loophole? I'm concerned that having lots of accounts open would put lenders off when I apply for a mortgage in 2 years or so.

I've applied for 3 mortgages & 4 credit cards this year and have around 10 current accounts. No problems with any applications.

DocOxon

But it seems to me overlooked.
If you upgrade your barclays account to Blue Rewards, they will give you £7 cash back. But you do need two DDs and pay in £800. They will charge a £3 monthly fee, so it means you get £4 net every month, plus access to several discounts, such as %7 off Expedia bookings, or casgback in Robert Dyas...

With Santander they also give cash back of %3 on some bills, so it's better have the mobile bill coming off there.
I lacked one DD for my Halifax, so I just set up a DD of £1 to my favourite charity...
So still even if you pay £12pa for charity in one of the accounts isn't that bad...

Hope this helps, this is my first post.:beer: