5% Savings Loophole

shangaijimmy

We're in the midst of a remortgage epithet everything approved and just waiting for paperwork. My intention is t the open 2 TSB accounts and possibly a nationwide one for our savings. Our remortgage is straight forward with 62% LTV, we're taking 2/3's of the amount they were willing to lend and we haven't any loans, bad credit etc... We're also switching current accounts as part of the mortgage products

So my question is when is it safe to apply for the accounts? I'm presuming that once we have signed and posted back the mortgage offer that we're safe, or do we need to wait until new mortgage and current account switch is up and running? I am impatient to get cracking, after subscribing to this thread!

Sorry one more question to double check. For the 1k into nationwide, I am allowed to do this in 2 transfers aren't I? So a potential £500 on day 1 from everyday account to nationwide, then the £500 to tsb on day 2, then same £500 back to nationwide on day 3. Or do I need to leave a day in between each transfer?

HUMBUG

Isn't it only a matter of time before all these banks get together and secretly agree some ploy to stop us moving money around various accounts (ie. via standing orders). The number of extra electronic transactions will get enormous!!! I bet they start charging for standing orders soon .

Herbalus

HUMBUG wrote: »

Isn't it only a matter of time before all these banks get together and secretly agree some ploy to stop us moving money around various accounts (ie. via standing orders). The number of extra electronic transactions will get enormous!!! I bet they start charging for standing orders soon .

And how are they going to stipulate that? I'd be surprised if you can come up with a rule that could be acceptable to banks in terms of not excluding lots of customers (you can hardly exclude faster payments from the contributing amount as not everybody is paid by BACS), but stops us using the system.

Banks have tried by stipulating direct debits and minimum pay-ins, which will make it too cumbersome for all but a few to consider worthwhile. And then TSB comes along and makes a big thing of "we don't force you to switch all your direct debits": perhaps MSE forums make it appear that playing the system is more prevalent that in reality.

apt

I imagine it is very widespread given the interest rate differential over the past three or four years, but it's a cost effective way of getting new current account customers which the banks want.

mgdavid

apt wrote: »

I imagine it is very widespread ......

I doubt it's done by more than 10% of all the personal current account holders.

colsten

HUMBUG wrote: »

Isn't it only a matter of time before all these banks get together and secretly agree some ploy to stop us moving money around various accounts (ie. via standing orders). The number of extra electronic transactions will get enormous!!! I bet they start charging for standing orders soon .

Let's cross that bridge should we ever come to it.

In the meantime remember that this forum is public and that it is not beyond the wits of any bank to read it.

Herbalus

colsten wrote: »

In the meantime remember that this forum is public and that it is not beyond the wits of any bank to read it.

True, but that sounds more menacing than I think it is. I don't think we're being sneaky or even discrete about having 12 current accounts, and I think the banks don't need to read about it on a public forum to know that it happens. Any bank worth its salt surely must know how account holders are running their accounts.

Let's face it, even people like Martin Lewis don't talk about this. When asked about it on the radio he actually said it was hassle to have a current account just as a savings account because of the DDs, so it's hardly got the public's attention. Those who have over 10 current accounts and Tesco DDs are few and far between.

jimjames

mgdavid wrote: »

I doubt it's done by more than 10% of all the personal current account holders.

Or even less than that.

You only need to see comments on here saying it's too much hassle. And that's from people who are actively on a Moneysaving site let alone the people who never bother to check anything.

HUMBUG wrote: »

Isn't it only a matter of time before all these banks get together and secretly agree some ploy to stop us moving money around various accounts (ie. via standing orders). The number of extra electronic transactions will get enormous!!! I bet they start charging for standing orders soon .

If the banks stop people using current accounts as current accounts then there would be uproar. Like stopping everyone driving just because a few people drink and drive.

The cost of instant payments is tiny and as they are automated there is no difference for 1 or 100

colsten

Herbalus wrote: »

True, but that sounds more menacing than I think it is.

Not trying to be menacing. Just realistic, as too many people on here seem to think that banks don't participate on the forum. For the avoidance of doubt, participate means read and write.

Herbalus wrote: »

Let's face it, even people like Martin Lewis don't talk about this. When asked about it on the radio he actually said it was hassle to have a current account just as a savings account because of the DDs, so it's hardly got the public's attention. Those who have over 10 current accounts and Tesco DDs are few and far between.

May be there's a good reason why ML doesn't talk about it, and may be there's a good reason why the MSE Forum shouldn't talk about it either.

Note to self: shut up now.

Kendall80

Admittedly it was a little bit of hassle a few months back. Reading up T&C's, applying for accounts, waiting for the snail mail. Once that was done and the SOs were setup I've not touched them since. Every month on the 2nd I get a nice £60 into my main account. £720 a year for sending out a few letters and setting up a few SO's ? Easy money.