5% Savings Loophole

colsten

LXdaddy wrote: »

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

Cashback is a discount on a purchase you have made. Discounts do not count as taxable income.

caveman38

I opened a Club Lloyds joint account today in branch. The CS rep insisted that I was allowed a regular saver on this account although me and the missus already had 2 with our sole accounts.
Lo and behold it appears on my on-line banking page.
Is it a matter of time for the T&C to kick in and it to be closed. I ask as I don't want to set up SO and furnish it with any money if it won't last.
Any chance I could keep it or should I ring them up and confirm T&C and allow them to close it now. Honesty hurts.

colsten

caveman38 wrote: »

I opened a Club Lloyds joint account today in branch. The CS rep insisted that I was allowed a regular saver on this account although me and the missus already had 2 with our sole accounts.
Lo and behold it appears on my on-line banking page.
Is it a matter of time for the T&C to kick in and it to be closed. I ask as I don't want to set up SO and furnish it with any money if it won't last.
Any chance I could keep it or should I ring them up and confirm T&C and allow them to close it now. Honesty hurts.

I'd keep it even though their T&Cs say differently. If they ever challenge/close it, they'll [have to] pay interest until the date of closure because they made the mistake of opening it.

If you know the name of the Lloyds person who opened the account for you, keep their name, and the date/time of your discussion, just in case questions will be asked. If you don't remember their name, may be pop into Branch to seek them out and thank them for their help whilst making a note of their name.

NB. I trust you have you maxed all the 5% and 6% Savers and 4% is now the best you can get for additional accounts.

Aboatforxmas

Hi
I'm very new and have read through most of this forum on the 5% savings loophole. I am a bit confused and wonder if someone could help.
If I had £1500 to use every month how much could I earn in interest per month and year by moving it around the various accounts?
Apologies if this has been made clear somewhere but I cant find it .

colsten

Aboatforxmas wrote: »

Hi
I'm very new and have read through most of this forum on the 5% savings loophole. I am a bit confused and wonder if someone could help.
If I had £1500 to use every month how much could I earn in interest per month and year by moving it around the various accounts?
Apologies if this has been made clear somewhere but I cant find it .

Can you explain what you mean by "if I had £1500 to use every month"? How much is your total savings balance?

Aboatforxmas

I've got a savings account not doing much with £1500 in it. I was thinking of using this.

colsten

Thanks for clarifying. Assuming your existing current account is not a TSB Plus account, open a TSB Plus and put your £1,500 into it. Set communications and statement to paperless, swap £500 once a month between your existing current account and the TSB Plus. Before you do all this, verify that this suggestion complies with the T&Cs of the TSB Plus and will give you 5% AER.

As and when you have more than £2,000 in the TSB Plus, you can look into getting a TSB Monthly Saver. Once you have maxed that one as well, check what the best interest paying accounts are at that time.

NB. Above assumes you are over 17. If you are not, please post your age.

YorkshireBoy

Aboatforxmas wrote: »

If I had £1500 to use every month how much could I earn in interest per month and year by moving it around the various accounts?

By using the above mentioned TSB Plus account, circa £6 and £75 (gross) respectively.

In contrast, by playing the switching incentive game you'd probably make around £600-700 over the next year.

So, assuming you're over 18, where are you going to concentrate your efforts?

mal54

I have a Club Lloyds current account. However I have noticed that even though I have kept well over £5k each month (normally £6k+), my interest differs each month.
Lloyds are struggling to explain this - any ideas why this should be?

Archi_Bald

It's because interest is calculated daily, and there can be different number of days in statement periods.

Why Lloyds are struggling to explain this, I do not know. Who in Lloyds did you ask?