High interest current accounts - ok to withdraw the regular transfers in?

hashterix

With various current accounts offering high interest rates, I'm wondering whether it is ok to meet their criteria for monthly deposits to get the high rate but to then transfer it straight out again?

For example, Nationwide Flex Direct only requires a monthly deposit of £1,000 (doesn't seem to need direct debits set up or anything else) to pay 5% AER on balances up to £2,500.

So, if I set up an account with £2,500 in and then transfer in £1,000 each month before shortly afterwards transferring that £1,000 back out again, will I basically be earning 5% on my balance of £2,500?

Have look through FAQs and other threads but can't readily see an answer to this. I can't see any terms that would proclude this but would like to check.

Thanks all!

grumbler

It's OK.........

CLAPTON

hashterix wrote: »

With various current accounts offering high interest rates, I'm wondering whether it is ok to meet their criteria for monthly deposits to get the high rate but to then transfer it straight out again?

For example, Nationwide Flex Direct only requires a monthly deposit of £1,000 (doesn't seem to need direct debits set up or anything else) to pay 5% AER on balances up to £2,500.

So, if I set up an account with £2,500 in and then transfer in £1,000 each month before shortly afterwards transferring that £1,000 back out again, will I basically be earning 5% on my balance of £2,500?

Have look through FAQs and other threads but can't readily see an answer to this. I can't see any terms that would proclude this but would like to check.

Thanks all!

yes indeed


many threads about with people who have 4/5 current a/cs and just transfer the min from one to the other in sequence.

hashterix

Thanks both - sorry I missed the existing threads on this - didn't find a useful way to summarise my question in search terms so had to rely on visual scanning!

newthrift

Thanks this actually helps me, I had been wondering if to do something similar to this myself.

CKhalvashi

It has to enter the account, but as a current account doesn't have to stay there.

The only exception to this that I can think of is the Santander 123, which requires £3000 for the 3% interest rate, although it's advisable to keep more than this and pay bills directly from it.

badger09

CLAPTON wrote: »

yes indeed


many threads about with people who have 4/5 current a/cs and just transfer the min from one to the other in sequence.

only 4 or 5 current accounts? Lightweights :rotfl::rotfl:

Archi_Bald

CKhalvashi wrote: »

The only exception to this that I can think of is the Santander 123, which requires £3000 for the 3% interest rate, although it's advisable to keep more than this and pay bills directly from it.

Club Lloyds and BOS Vantage also have minimum levels for their maximum interest rates.

jimjames

CKhalvashi wrote: »

It has to enter the account, but as a current account doesn't have to stay there.

The only exception to this that I can think of is the Santander 123, which requires £3000 for the 3% interest rate, although it's advisable to keep more than this and pay bills directly from it.

For clarity and to avoid any confusion where people think you can earn interest without money being in the account, on any of the accounts you need the appropriate money in there to get the interest rate eg for TSB up to £2000 per account. The only one that doesn't is Halifax and you can get £5 just moving the money in and out.

CKhalvashi

Thanks for correcting me guys, I was trying to think of another tiered account, but couldn't at the time.

As most regular forum members know, English is not my first language, so I am grateful if I've not made something clear