5% Savings Loophole

Dan83

It's not really a loop hole, I bet people on this forum have been doing this for s long time.

I'm currently in the process of setting up my accounts to do this (doing it on-line is a slow process, waiting for paper work ect) and highlighting it (by publicising it and writing an article) you will prob do more harm then good, as now with the thousand/millions of other people who do this will force the banks to change their T&Cs.

Things like this should be left for the people who take the time to look for them.

bobobski

Dan83 wrote: »

... Things like this should be left for the people who take the time to look for them.

Pretty strange understanding of how competition works in an economy...

Eco_Miser

Dan83 wrote: »

It's not really a loop hole, I bet people on this forum have been doing this for s long time.

Did you happen to notice the date of the first post? 30-06-2014 - so that's eighteen months so far, and the rates are still high.

Dan83 wrote: »

Things like this should be left for the people who take the time to look for them.

This is a money saving site, so they pass on money saving tips. It's a big site but the numbers viewing and acting on what they see are still small compared to the numbers of bank account holders.

HLP_2

Forgive me if this has been answered previously but what if the (current) maximum amount a couple can invest into this 'project'? The response to the question asked by 'the blonde lady' suggested she could invest about £50k, so is this doubled for a couple?

YorkshireBoy

HLP wrote: »

Forgive me if this has been answered previously but what if the (current) maximum amount a couple can invest into this 'project'? The response to the question asked by 'the blonde lady' suggested she could invest about £50k, so is this doubled for a couple?

It's £130.5K at 3% or better for a couple.

HLP_2

Thanks for the reply. That's way more than I envisaged, if it's not too much trouble would you kindly list the breakdown please?

Cheers

xylophone

https://forums.moneysavingexpert.com/discussion/5374614

would be worth a look.

Spidernick

If we are being pedantic, then assuming that the Santander 123 accounts for £60K of this £130.5K (i.e. 3 x £20K) then its effective rate won't be '3% or better' after the monthly charge. Still a good rate though.

YorkshireBoy

HLP wrote: »

Thanks for the reply. That's way more than I envisaged, if it's not too much trouble would you kindly list the breakdown please?

Cheers

All are one sole each plus a joint unless stated otherwise...

£60K @ Santander
£7.5K @ Nationwide
£6K @ TSB
£15K @ Lloyds
£30K @ BoS (3 sole each)
£12K @ Tesco (2 sole each)

See also www.bankaccountsavings.co.uk

YorkshireBoy

Spidernick wrote: »

If we are being pedantic, then assuming that the Santander 123 accounts for £60K of this £130.5K (i.e. 3 x £20K) then its effective rate won't be '3% or better' after the monthly charge. Still a good rate though.

Would you have been as pedantic if I'd added the letters "AER" after the 3%, rather than keeping it simple?

The gross p.a. return (because you can't compound if full) on the whole lot is 3.27% (3.13% after the Santander £5 fees).