5% Savings Loophole

Eco_Miser

Siouxsie32 wrote: »

I have a Nationwide FlexDirect that's more than 12 months old so only get 1% interest there unless I can open a second one? (I read the criteria but found it a little ambiguous! I know I can open a second account, but think I won't get 5%?).

Downgrade/transfer or otherwise arrange to NOT have a FlexDirect for a period of 12 months, then upgrade or otherwise open one again and get 5% again. (assumes offer is still available then). This has been reported to work.

Siouxsie32 wrote: »

I think (and please correct me if I'm wrong) that a constant 3% in Tesco is better than 1 month at 4% then the rest of the year at 2%/1% that Lloyds would earn. And I think it's not worth opening a Lloyds account for the short time it'll earn 4%.

I agree with that.

Don't forget to move £500 into the TSB current, and approx £258 back, every month.

colsten

Siouxsie32 wrote: »

Fab news re the 2 Tesco accounts coltsten! So, in theory, I can earn 3% on up to £6000 over both accounts.

you can. put less than £3K in each to start with, so that you don't have to skim off the monthly interest, and can compound interest

Siouxsie32 wrote: »

Is it okay to open both accounts at once

I did, and I believe many others did, too

Siouxsie32 wrote: »

One last thing, the Nationwide Saver seemed to suggest a maximum of £500 per month, but I didn't see a minimum anywhere. If this is the case, the monthly shuffle would look like...

Months 1-3: £250 HSBC, £500 Nationwide, £250 TSB
Months 4-7: £250 HSBC, £500 Nationwide, £25 TSB
Month 8: £250 HSBC, £25 Nationwide, £25 TSB (because capital is running out and TSB require a minimum of £25 per month)
Months 9-12: £250 HSBC, £25 TSB.

The general idea is spot on. You could squeeze out a few more pounds if you could use the TSB Plus, the FD 6% and M&S Bank RS but the additional effort may not be worth it.

Keep an eye on switch offers and don't forget to somehow get rid of your FlexDirect(s) so you can become eligible again for their 5% if they still do them once you 'rested' your FlexDirects for 12 months.

Siouxsie32

Eco_Miser wrote: »

Downgrade/transfer or otherwise arrange to NOT have a FlexDirect for a period of 12 months, then upgrade or otherwise open one again and get 5% again. (assumes offer is still available then). This has been reported to work.
I agree with that.

Don't forget to move £500 into the TSB current, and approx £258 back, every month.

I have thought about downgrading my Nationwide account Eco, and now would be a good time to to it if I'm starting a 12 month savings plan. It's the only one that has an overdraft and it's why I've been reluctant to switch it. I haven't used the overdraft since June last year (for two days!) so I could get rid of it without a problem. Hmmm, maybe I could switch to get an incentive elsewhere because it has two DDs already set up! Or, maybe if I downgraded the account, NW would let me keep the overdraft? Lots to think about, but you've all given some great advice here :beer:

YorkshireBoy

Siouxsie32 wrote: »

Or, maybe if I downgraded the account, NW would let me keep the overdraft?

They let me keep mine.

Disclaimer: My "status" may be different from yours. Just remember that if you do get to keep the facility, be sure to generate some throughput...ie don't leave the account dormant. £750 a month would get you free EU travel insurance on the FlexAccount (T&Cs apply).

Siouxsie32

Great info, thanks Yorkshire Boy. Yes, maybe that's the answer.....

hushpuppy

I have made the mistake of reading through the whole thread in the hope of trying to answer my own question, but I have simply confused myself. I therefore apologise now for what is, I know a repetitive questions, but for those of you cleverer than me, please help me out.

I have recently inherited some money and I have invested some of it in an ISA and was thinking of putting the remaining £20,000 into another ISA. I then found this thread and wondered if there was a better way to maximise the money given the dire ISA rates?

If it helps my main Bank Account is First Direct but I also have bank accounts (albeit it with small amounts in them) with Santander, Halifax and Nationwide.

YorkshireBoy

hushpuppy wrote: »

I have made the mistake of reading through the whole thread in the hope of trying to answer my own question, but I have simply confused myself. I therefore apologise now for what is, I know a repetitive questions, but for those of you cleverer than me, please help me out.

I have recently inherited some money and I have invested some of it in an ISA and was thinking of putting the remaining £20,000 into another ISA. I then found this thread and wondered if there was a better way to maximise the money given the dire ISA rates?

If it helps my main Bank Account is First Direct but I also have bank accounts (albeit it with small amounts in them) with Santander, Halifax and Nationwide.

Re £20K in another ISA, isn't the limit £15,240 for the 2016/17 tax year?

Re the ISA you've "invested" in, that will be a S&S ISA then?

Perhaps you could clarify whether you want to invest or save?

If save, then you have to decide whether you want 3/4/5% on your money, or 'happy' to receive only 1.xx% interest. For me that's an easy decision.

If you decide you want to save, rather than invest, there's a thread on here somewhere listing the best paying accounts.

hushpuppy

Yes sorry, I topped up what I had left this year and have opened a new one for 16/17.

So I still have £20,000 that I'd like to Save But maximising the 4, 5 and/or 6% accounts, apologies for not making myself clearer, especially by using Invest when I meant Save.

YorkshireBoy

hushpuppy wrote: »

Yes sorry, I topped up what I had left this year and have opened a new one for 16/17.

So I still have £20,000 that I'd like to Save But maximising the 4, 5 and/or 6% accounts, apologies for not making myself clearer, especially by using Invest when I meant Save.

You say "I", but are there 2 of you? If so, are you happy to 'share' the cash with your spouse by opening accounts in their name?

hushpuppy

Yes most certainly.