NISA vs Santander Current Acc

xirokx

wow some awesome advice here....

right what I aim to do is sit down saturday afternoon and come up with a plan which I will present to you guys and hopefully you can approve or tweak it for me...

You say just initial setup is required? How do I do this? Please advise...Thank you

what I meant with this question was a) which bank acccounts do I open and b) how much do I put into each one when opening them and c) from which accounts do the SOs go and into which account?


if need be can I pm you colsten

thanks so much

jimjames

xirokx wrote: »

wow some awesome advice here....

right what I aim to do is sit down saturday afternoon and come up with a plan which I will present to you guys and hopefully you can approve or tweak it for me...



what I meant with this question was a) which bank acccounts do I open and b) how much do I put into each one when opening them and c) from which accounts do the SOs go and into which account?


if need be can I pm you colsten

thanks so much

Read post #2. All detailed there.

Whatever account you open you need to keep an eye on rates.

xirokx

ey
Thanks for your advice really appreciate it.

Can you double check my plan and let me know if it makes sense??

So I aim to open:
- 1 x TSB acc @ £1800 @ 5%
- 1 x TSB acc @ £1800 @ 5%
- 1 x NW FlexDirect acc @ £2500 @ 5%
- 1x Llyods Club @ 3900 @ 4%

Total interest = £461 if rates stay the same.

However, Llyods Club current account requires £1500 to be paid in monthly. My current salary is £1166 per month after tax.

So how can I get around this?

Also thanks for awesome advice re: closing my Natwest Current account etc How did you calculate I could earn an extra £485 though?

I worked it out as follows:
Natwest -> Halifax = £100 + £60 for being in credit
New Natwest Curr Acc -> CoOp acc = £100 then close this and open 1st Direct = £100

= £360 for switching accounts…

Or have I missed the point…

Finally thanks for letting me know about keeping an eyes on rates, I sure will do once these are open.

Also I am confused with regards to SOs if the accounts above that I plan to open are correct, any chance you can let me know from which account to which account I need to transfer the cash?

Please can you kindly clarify my above points and check if the accounts I want to open up are correct?

Thank you so very much

YorkshireBoy

xirokx wrote: »

Thanks for your advice really appreciate it.

Really? You seem to have ignored the excellent advice given on your 'split' in post #2.

Can you double check my plan and let me know if it makes sense??

- 1x Llyods Club @ 3900 @ 4%

You need to keep >£4K in this account to get 4% AER.

Total interest = £461 if rates stay the same.

Haven't checked your maths, but you've got £2 more than the figure I gave you earlier in post #8. How have you managed that?...bearing in mind a) you can't get 5% at Nationwide (only 4.89%) with £2.5K and, as I said above, you're not making 4% at Lloyds with less than £4K.

However, Llyods Club current account requires £1500 to be paid in monthly. My current salary is £1166 per month after tax.

So how can I get around this?

Withdraw, or transfer to another account, £334 and pay it back in again!...would be one method. However, in your shoes I'd simply SO (or manually transfer) £1.5K between Nationwide and Lloyds, and back again.

Also thanks for awesome advice re: closing my Natwest Current account etc How did you calculate I could earn an extra £485 though?

I worked it out as follows:
Natwest -> Halifax = £100 + £60 for being in credit
New Natwest Curr Acc -> CoOp acc = £100 then close this and open 1st Direct = £100

= £360 for switching accounts…

Or have I missed the point…

You've forgotten M&S (£100). And the FD offer seems to change from £100 to £125, depending on the strength of their marketing budget presumably. That accounts for the remaining £25.

Also I am confused with regards to SOs if the accounts above that I plan to open are correct, any chance you can let me know from which account to which account I need to transfer the cash?

TSB can be internally funded. Transfer £500 from 1 to 2, and back again.

Set up SOs (or make manual transfers) from Nationwide to Lloyds and back again...for £1.5K

xirokx

So regarding the 10k investment I will open 6 accounts as below;
2 x 1800 in 5% TSB Plus Accounts = 90
2 x 1800 in 5% TSB Plus Accounts = 90
1 x 2300 in 5% Nationwide FlexDirect = 115
1 x 4100 in 4% Club Llyods = 164
Total Interest After 1 year = £459

As Llyods Club requires a minimum of £1500 to be paid monthly your advice is to setup a standing order between Nationwide FlexDirect and Llyods and then 1 day after transfer it back.

- Will I not lose interest from Nationwide by doing this?
- When in the month would you do this? At the start so on the 3rd day of each month and transfer it back on the 4th day?

Re: opening up a new natwest account and closing accounts I am still confused what to do about

this, please can you simplify as I have above so I know what to do precisely.

So far I have this please advise if its correct:

Close:
Current Natwest Account
CoOp current acc (so how long do I leave this CoOp account for?)


Open:
New Halifax Account (so is this now my main current account to keep in credit?? ) from existing Natwest
New Natwest and switch to CoOp
First Direct from existing CoOp


Total gained: £485 (I dont understand what you mean I should do with the M& S account - which account do I close to transfer to this M&S one??)

Can I open these accounts and manage them all online???
Over what timespan would you open them and then close them? within 3mths from opening date?
Which account would you keep as a "donor" account?

Thank you so very much for your support, its most appreciated

YorkshireBoy

xirokx wrote: »

As Llyods Club requires a minimum of £1500 to be paid monthly your advice is to setup a standing order between Nationwide FlexDirect and Llyods and then 1 day after transfer it back.

I didn't say to delay the transfer back! Read my "advice" again.

- Will I not lose interest from Nationwide by doing this?

Yes you would, if you delayed the transfer back.

- When in the month would you do this? At the start so on the 3rd day of each month and transfer it back on the 4th day?

Get it done as soon as possible in the month, certainly before the 25th or so. That way you avoid any issues when the end of the month falls on a weekend or Bank Holiday.

Can I open these accounts and manage them all online???

Yes.

Over what timespan would you open them and then close them? within 3mths from opening date?

If you're simply abusing them, ie open/get the incentive/close them, then get it done as quickly as possible...before any/all of them are pulled.

xirokx

thanks for your reply

I didn't say to delay the transfer back! Read my "advice" again.

oh so what did you mean when you said this??:

However, in your shoes I'd simply SO (or manually transfer) £1.5K between Nationwide and Lloyds, and back again.

Archi_Bald

Do it on the same day. If manually, do it in less than a minute. If by SO, just set up the SO for the same day. You seem to be over-thinking this.

xirokx

yeh sorry just want to get it right

oh so he means to setup a standing order from and to the bank accounts which goes in and comes out on the same day? so there is no loss of interest from either account?

YorkshireBoy

xirokx wrote: »

yeh sorry just want to get it right

oh so he means to setup a standing order from and to the bank accounts which goes in and comes out on the same day? so there is no loss of interest from either account?

Correct.

However, if there's a problem with one of the banks, meaning one of the SOs is delayed, you'll lose interest.

With my current accounts I internally cross fund those with the same institution (BoS & TSB...but Tesco can also be funded this way) by SO, and for those which require external funding I make manual transfers.

Also, you need to be particularly careful when using SOs. If you decide to withdraw funds for a large purchase (car, mortgage deposit, holiday, etc), you need to cancel them!