5% loophole trick caveats

*Rainbow*Warrior*

Herbalus wrote: »

I can't say I have the faintest idea what you're on about, or from where you understand that there is a 5% savings account linked to a bank account.....

TSB and Nationwide pay 5% on some of their bank accounts. TSB allow you to have 2 single and 2 joint, and Nationwide allows 1 single and 1 joint.

I was referring to this link from mse, where it says First Direct will pay 6% on a savings account, and similar sort of thing from Nationwide
http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#firstdirect

I was suggesting opening one current account, with one or two people named on that account, and asking if each individual named would then be eligible for their own savings account, or if it is just one savings account per current account (regardless of how many people are named on the current account). Your comment above (the bit I've highlighted in blue) doesn't make it clear if you are referring to opening multiple current accounts or multiple savings accounts.

I can (and no doubt will) read the small print myself but hoped for a quick answer if someone has already looked into this in greater detail.

colsten

*Rainbow*Warrior* wrote: »

I was referring to this link from mse, where it says First Direct will pay 6% on a savings account, and similar sort of thing from Nationwide
http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#firstdirect

I was suggesting opening one current account, with one or two people named on that account, and asking if each individual named would then be eligible for their own savings account, or if it is just one savings account per current account (regardless of how many people are named on the current account). Your comment above (the bit I've highlighted in blue) doesn't make it clear if you are referring to opening multiple current accounts or multiple savings accounts.

I can (and no doubt will) read the small print myself but hoped for a quick answer if someone has already looked into this in greater detail.

Your question appears to be specific to First Direct. This thread is about what MSE call the "5% saving loophole", which doesn't apply to First Direct.

Might be better if you find an FD thread, or check on the FD site / call them. It is always dangerous to rely on an open internet forum for T&Cs, but for what it's worth, I think both account holders of an FD joint account can hold a Regular Saver with them.

*Rainbow*Warrior*

colsten wrote: »

Your question appears to be specific the First Direct. This thread is about what MSE call the "5% saving loophole", which doesn't apply to First Direct.

Might be better if you find an FD thread, or check on the FD site / call them. It is always dangerous to rely on an open internet forum for T&Cs, but for what it's worth, I think both account holders of an FD joint account can hold a Regular Saver with them.

:o:o My apologies - I misunderstood the thread title. Sorry :o:o


Just got a bit mixed up - over the last few days I've been looking into regular savings, ISAs, and lump sum savings (not all for myself but a number of family accounts all need sorting at the moment) and I just got confused. Sorry.

vikpaw

So it's not called a savings account because it's a limited current account. E.g. TSB caps the amount they will pay interest in at £2000. But, it's still a good way to save. Yes you can have your own and joint with Nationwide, TSB let you have two single. I don't know how you can have two joint with them as well. I guess it involves two other people and probably is instead of your single account allowance.

@aussiescall I wouldn't set them up so close together. I think that for a Monday transfer sometimes the money may leave your account on Friday also complicated by bank holidays if you need to pay on a Tuesday. I'd want to build in a buffer of a few days between if possible just in case. Not sure how that affects the timing on a big loop. Hopefully though, at least in this setup each account has surplus funds which you are earning the core interest on so if worst case happens you'd lose a little interest for a few days.

Ah just saw already answered on next page of posts.

moneyfoolish

Most of these accounts ask you for what purpose you want this account from a drop down list. Has anybody selected "savings" and been allowed to open the account?

Archi_Bald

Most people open current accounts so they can pay bills. Paying bills doesn't mean you pay one or more of these bills monthly, quarterly or even annually. :cool:

tizerbelle

moneyfoolish wrote: »

Most of these accounts ask you for what purpose you want this account from a drop down list. Has anybody selected "savings" and been allowed to open the account?

Yes (TSB Classic Plus)