5% Savings Loophole

Mee

I think RandS was trying to be helpful. A little bit of logical thinking and organisation is required. If a spreadsheet works for some all well and good.

Personally I prefer to use DDs to fulfil minimum deposit restrictions (going out on the first or second day of the month) and advance FP from one feeder account.
However, I would not go near Charity DDs - I do give to charities but I don't do second (or third?) party DDs.

Archi_Bald

Mee wrote: »

Personally I prefer to use DDs to fulfil minimum deposit restrictions (going out on the first or second day of the month) and advance FP from one feeder account.

errrrm - you must mean SOs, as it is impossible to satisfy minimum deposits with DDs.

Mee wrote: »

However, I would not go near Charity DDs - I do give to charities but I don't do second (or third?) party DDs.

if you do not have any DDs, you can't meet the terms of those accounts that require DDs for whatever reasons. There's nothing wrong with DDs, for charities or other companies.

jimjames

Mee wrote: »

However, I would not go near Charity DDs - I do give to charities but I don't do second (or third?) party DDs.

Can you explain what a second or third party DD is? I've no idea and I've got loads of DDs setup. As far as I'm aware ALL direct debits are to a third party.

Mee

Sorry if I offended anyone by saying I would not do charity DDs - they are just not for me.

I use a mixture of DDs (to self) and advance FPs as I am unable to set-up S/Os from a certain feeder savings account. This does enable me meet the terms of various high interest current accounts. Each to their own

caveman38

Of all the cards that I've received none have mentioned that I need to activate them. My own personal FD and HSBC card have always requested me to activate them on receiving a new one.
Apart from activating the account for internet banking, is there anything else you have to do to the cards especially if you don't intend using them.
Is there any mandatory instructions or forum advice as what to do before you store them away?

bobobski

Apart from activating the account for internet banking, is there anything else you have to do to the cards especially if you don't intend using them.

I never activated my TSB debit card as I use that account for savings. Keep it somewhere safe just in case (i.e. I don't recommend destroying it) but no need to activate. Not sure if that answers the question?

YorkshireBoy

caveman38 wrote: »

Of all the cards that I've received none have mentioned that I need to activate them. My own personal FD and HSBC card have always requested me to activate them on receiving a new one.
Apart from activating the account for internet banking, is there anything else you have to do to the cards especially if you don't intend using them.
Is there any mandatory instructions or forum advice as what to do before you store them away?

I can imagine problems with later switches (eg for incentives), so if cards have a "please activate" sticker attached I activate them, even for current accounts used purely for savings.

bigadaj

bobobski wrote: »

I never activated my TSB debit card as I use that account for savings. Keep it somewhere safe just in case (i.e. I don't recommend destroying it) but no need to activate. Not sure if that answers the question?

Not interested in the 5% cashback then?

NectarCollector

After several calculations I have discovered a way to make roughly £375 interest (after tax) in the 1st year of switching

Switch my current account to Lloyds, keep at least £4k in there to get 4%, open a TSB account and deposit £2k for 5% feed that with £500/month min pay in, and the linked regular saver account which I will save the minimum of £25/month, and then send back the unused £475 from TSB back to Lloyds to supplement the £1500 minimum pay in.
The remaining £2500 is in a nationwide joint account at 5% for year 1 (cannot open a personal account for 5% as I have already owned one in the last 12 months - if I did I would only be offered 1%, will open a personal account with nationwide again after my old account has been closed for 12 months.

Golfish

Evening All


I am new to this forum but have been following MSE advice on having multiple current accounts to maximise my interest return, my question is now that I am getting £1200 pa in interest which account will I pay tax on when the £1000 tax free allowance comes into force in April 2016.


Kind Regards