5% Savings Loophole

Robbieh

jacschaps wrote: »

Does this 5% loophole still work? I'd like to try it, but it seems so complicated. Any advice??

Yes it works! Read the thread over and over till you understand it. It becomes clear after a while, I managed it so it's not too complicated. Good luck.

LXdaddy

jacschaps wrote: »

Does this 5% loophole still work? I'd like to try it, but it seems so complicated. Any advice??

Yes it does work. I encourage you to use the information in this thread and others on this forum.

Keep a logical list of all of the accounts you intend to open and track the progress of the setup. Read the T&C on each account carefully.

Between myself an my OH we have
3* Santander 123 @3%
2* Club Lloyds @4%
2* TSB Classic Plus @5%
2 * Tesco Current @ 3%
Plus regular savings accounts
2* First Direct @6%
2* Club Lloyds @4%
2* TSB @5%
1* Nationwide @5%

And a Halifax rewards for the £5/month
And our "real" current account!

And 4* Tesco savings accounts that allow Direct Debits. All the direct debit requirements are satisfied by the Tesco accounts (and all bills that can get cashback are on the Santander accounts) All the funding requirements are met by standing orders flowing between these various accounts.

These didn't all get started at the same time! in fact it's a few years between the first accounts being opened and the latest ones. So the funding SOs are perhaps not the simplest with some money going around in circles but some of the later setups just simple bounce from one account to another and back on the same day.

I have not maximised all the opportunities yet but I'm certainly earning more interest than the funds would do in any of the simple savings accounts.

YorkshireBoy

LXdaddy wrote: »

I have not maximised all the opportunities yet

That's certainly an impressive list! But staring me in the face are 3 opportunities you might want to address straight away...

Joint Club Lloyds
Joint TSB Plus
Another Nationwide Reg Saver

...which would initially see £7K of your Tesco/1-2-3 cash immediately making 4-5% instead of 3%, and then another £500 per month ongoing making 5%.

LXdaddy

YorkshireBoy wrote: »

That's certainly an impressive list! But staring me in the face are 3 opportunities you might want to address straight away...

Joint Club Lloyds
Joint TSB Plus
Another Nationwide Reg Saver

...which would initially see £7K of your Tesco/1-2-3 cash immediately making 4-5% instead of 3%, and then another £500 per month ongoing making 5%.

Yeah - the joint Club Lloyds and TSB are good suggestions - I'd also do their regular savings accounts while I was there.


Not sure if we can open another Nationwide Flex Regular Saver because the one I have opened is linked to our joint Flex account so it's in joint names.


The other slightly higher priority might be a Joint First Direct Regular saver and maybe even M&S bank regular savings - both for 6%.

YorkshireBoy

LXdaddy wrote: »

Yeah - the joint Club Lloyds and TSB are good suggestions - I'd also do their regular savings accounts while I was there.

You said you already had those. It's not possible to have more than one each.

Not sure if we can open another Nationwide Flex Regular Saver because the one I have opened is linked to our joint Flex account so it's in joint names.

That was a bad move. There was a workaround for joint account holders on here when they launched it. On the subject of Nationwide, why haven't you got 3 x FlexDirect? (1 sole each plus a joint)...again funded by withdrawing from the 3% paying accounts. Maybe you're in the 12 month wait period having done them already?

The other slightly higher priority might be a Joint First Direct Regular saver and maybe even M&S bank regular savings - both for 6%.

You need to start thinking 'sole', not 'joint', in order to double up the benefits.

LXdaddy

YorkshireBoy wrote: »

You said you already had those. It's not possible to have more than one each.That was a bad move. There was a workaround for joint account holders on here when they launched it. On the subject of Nationwide, why haven't you got 3 x FlexDirect? (1 sole each plus a joint)...again funded by withdrawing from the 3% paying accounts. Maybe you're in the 12 month wait period having done them already?You need to start thinking 'sole', not 'joint', in order to double up the benefits.

Getting crossed lines here. We have sole accounts with Club Lloyds and TS and First Direct - next move would be Joint accounts with those. So the "sole" is covered.


Yes we have had N'wide Flex Direct and will have them again in the future.

caveman38

Can someone confirm if this is correct, please.
123 active from the end of December but only had funds from 4th. Jan in excess of £20,000 and had 2 active DD's on 14th.
I am told that the charging period for this account is from 19th. - 18th. following month and the interest should appear on 19/20th.
I can see that in fact the interest has appeared in my account today, but with £21.03. interest paid gross. Is that correct?
I thought 20K x 2.96% / 365 or 366 x 14 or 15.
Any definitive solutions please - thanks


Edit: I have worked it out to be 13 days exactly - but why. Curiosity BTW not worried about a pound?

YorkshireBoy

caveman38 wrote: »

Can someone confirm if this is correct, please.
123 active from the end of December but only had funds from 4th. Jan in excess of £20,000 and had 2 active DD's on 14th.
I am told that the charging period for this account is from 19th. - 18th. following month and the interest should appear on 19/20th.
I can see that in fact the interest has appeared in my account today, but with £21.03. interest paid gross. Is that correct?
I thought 20K x 2.96% / 365 or 366 x 14 or 15.
Any definitive solutions please - thanks


Edit: I have worked it out to be 13 days exactly - but why?

The 'charging period' differs from the 'interest & cashback period'...by one day.

My interest & cashback is always paid on the 11th of the month, with the fee being taken on the 12th.

And, as you've now worked out, they're using 366, not 365.


EDIT: Scrub that! I've just checked back further and seen that the fee is taken more often than not on the same day the interest and cashback are credited. This month the fee was taken a day later, as it was a couple of times late last year, so that's what threw me. Apologies.

Markabs

Hi all. I currently have a Santander 123 account and a TSB Classic Plus and looking to open more. Recently my applications have been accepted for the Tesco and Bank of Scotland classic accounts.

I have since had a second BOS classic rejected, despite having regular income, good credit rating etc. Does anyone know why this might be the case? Is there a set period of time before you can open another? Thanks in advance.

eskbanker

Markabs wrote: »

Hi all. I currently have a Santander 123 account and a TSB Classic Plus and looking to open more. Recently my applications have been accepted for the Tesco and Bank of Scotland classic accounts.

I have since had a second BOS classic rejected, despite having regular income, good credit rating etc. Does anyone know why this might be the case? Is there a set period of time before you can open another? Thanks in advance.

You might want to read through this thread where others have experienced the same, trying to open a second one online has been reported as less successful than doing so by phone for example....