5% Savings Loophole

enthusiasticsaver

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.

Same thing happened to me earlier on this week. Some people have said they have opened one by phone instead so I am going to wait one month until my first one has had a full month of funding although it is up at the maximum for interest £5k and then try again as not sure where else to try.

Markabs

Thanks for quick replies. Waiting a month plus maybe applying by phone both seem sensible options. Hopefully I'll have better luck with Lloyds and another Tesco this week

Devilish_2

Alright, I've been thinking about getting on board with all this as well!

But I'm a bit confused about what to do first.

At the moment i've got a Santander 1-2-3 Current account but no other, and about 3k of savings stuck doing nothing in a Barclays ISA that I have to get working....harder.

I've looked at a First Direct current account for a new main one (for bonus) but in which order should I get extra current accounts to move the 3k balance around in - and can standing orders be done all in 1 day, or over several (1st, 2nd....etc).

As long as any current accounts aren't under the Natwest banner, had bad rep with that group...10 years ago.

Which is the right way to go with it all?

Eco_Miser

Devilish wrote: »

At the moment i've got a Santander 1-2-3 Current account but no other, and about 3k of savings stuck doing nothing in a Barclays ISA that I have to get working....harder.

Almost certainly, just moving the £3k from Barclays to Santander will be an improvement.
But opening current accounts paying 5% (TSB and Nationwide) will do better still.
See the full list of accounts paying 3% or better.

Devilish_2

Yeah, getting money out of barclays was first on the list.

Is getting main banking over to First Direct a good idea?

and in order of current accounts to get to maximise interest, which would be recommended (I guess TSB would be first, but isn't it a £2,000 limit on lump sums?)

Because I didn't know whether to keep Santander because of the monthly charges - eating up any benefit I got out of it before.

What about the "calendar month" cut off dates?

Is Bank of scotland's vantage worth adding into the money merry-go-round?

Still a bit confused! :P

Thanks

ceredigion

Much depends on the balance in Santander and how much you want to work at it.
First direct is of little use unless you are interested in the regular saver.

Rheumatoid

If cashback on a Natwest rewards is taxable does HMRC assume it is split 50/50 on a joint account? I'm a high rate tax payer and my wife isn't.

Devilish_2

Not a lot in Santander, just regular monthly wages, so it'should never ever above £3000 at any time. Any alternative?

Edit: after the changes to the fees, i'm still in profit on interest...to the tune of 80p.

Eco_Miser

Devilish wrote: »

Not a lot in Santander, just regular monthly wages, so it'should never ever above £3000 at any time. Any alternative?

Nationwide or TSB. Feed the matching regular saver as well.

LXdaddy

Rheumatoid wrote: »

If cashback on a Natwest rewards is taxable does HMRC assume it is split 50/50 on a joint account? I'm a high rate tax payer and my wife isn't.

Yes - Joint accounts are always assumed to be 50/50 between you. So half of any joint account interest should be declared by each of you. You will be liable for a further 20% of interest and your wife will have nothing further to pay.


(I am not commenting on whether or not cash back is taxable or not - I think other threads have said it IS)