5% Savings Loophole

Big_Bad_Bob

Hello all. Great thread, thanks. With such volatility in the stock markets, and both ISA rates and inflation being so low, this looks like a great way to get some secure, genuine capital appreciation.

Already having a Santander 123 current account (plus regular saver), I'm now in the process of opening accounts, plus regular savers where possible, with TSB, Nationwide, Tesco and BoS - with Lloyds to come once I've got the non-DD requiring accounts running smoothly.

One account apiece is already open, funds transferred, and where applicable monthly SOs setup to the main TSB and BoS accounts.

Couple of questions:

1. Now looking to set up the TSB regular saver standing order, but am unclear whether this needs to be funded from the TSB current account, or can come from an external account?

2. Like some others, I've had no problem opening all of the above accounts until I tried to open a second Vantage account with BoS which was refused. What's the best advice here, give them a call and try to open that way?

Thanks.

10_66

Big_Bad_Bob wrote: »

Couple of questions:

1. Now looking to set up the TSB regular saver standing order, but am unclear whether this needs to be funded from the TSB current account, or can come from an external account?

For TSB the payments can come from external accounts.

Big_Bad_Bob wrote: »

2. Like some others, I've had no problem opening all of the above accounts until I tried to open a second Vantage account with BoS which was refused. What's the best advice here, give them a call and try to open that way?

Many have said their 2nd online application fails, the most reliable way of opening 2nd/3rd Vantage accounts is to ring them up. Leave it a day between each application.




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Big_Bad_Bob

Great - thanks for that. Will get the TSB regular payment SO set up this afternoon, and give BoS a call next week.

littly_kitty

I've just finished setting this up (Apart from the Nationwide, as I am still signing up for that).

At first I thought it would be too much hassle, but it's actually very easy.

I think I found Martin's guide a little off putting as it has the money starting in Bank of Scotland and then going through all the accounts until it reaches Nationwide.
I found it easier just to split the accounts into pairs and then have the money transfer back and forth between two accounts.

But yes I would recommend making the effort.

Editha

I'm currently setting up a more complex version of 'the loop'. I've got around £70,000 to invest, as a result of a house sale, but I can utilise accounts in my husband's name as well as my own. In the last few weeks I've opened 4 Tesco accounts, 3 Lloyds, 6 Bank of Scotland, and will have 3 TSB and 3 Nationwide once we've satisfied the ID requirements. They seem to be fussier about my husband's ID than mine, maybe because he has dual nationality. I also opened up an M&S account, to take advantage of their £220 gift card offer.

The applications were time consuming; I've spent about two full days on them so far, but quite straightforward. Satisfying the direct debit requirements is not difficult for me, since I make a number of small monthly charitable contributions by DD. I've used a spreadsheet to work out the series of monthly standing orders to satisfy the requirements for each account.

But, I've realised that there is a further step I can take to maximise the interest, which is to open up the high interest regular saver accounts offered by Lloyds, Nationwide and M&S. We already have regular savings accounts with FD, which pay 6% and you can save £300 a month. M&S also offers 6%, but you can only save £250 a month. Nationwide offer 5%, on £500 a month, and Lloyds 4% on £400 a month. They are all alike, in that they only run for a year and then you have to begin again.

Eco_Miser

Editha wrote: »

But, I've realised that there is a further step I can take to maximise the interest, which is to open up the high interest regular saver accounts offered by Lloyds, Nationwide and M&S. We already have regular savings accounts with FD, which pay 6% and you can save £300 a month. M&S also offers 6%, but you can only save £250 a month. Nationwide offer 5%, on £500 a month, and Lloyds 4% on £400 a month. They are all alike, in that they only run for a year and then you have to begin again.

You can also save £250 a month @ 5% with TSB each.
Here's a link to even more regular savers (and the ones already mentioned), some of which you may find worthwhile.

Editha

Thanks for the tip, but the link doesn't work.

colsten

Try this one: https://forums.moneysavingexpert.com/discussion/608697

10_66

Editha wrote: »

...3 Nationwide once we've satisfied the ID requirements...

I thought you could only hold one "introductory rate" N'wide current account at a time?


http://www.nationwide.co.uk/~/media/MainSite/documents/products/current-accounts/shared/P857_ImportantInformation-TermsAndConditions.pdf


Do they allow you to open a joint one as well as sole then? (I'm assuming when you say three, you're counting one sole for yourself, one sole for your husband and one joint?

jimjames

10_66 wrote: »

Do they allow you to open a joint one as well as sole then? (I'm assuming when you say three, you're counting one sole for yourself, one sole for your husband and one joint?

Yes they do.