Savings Loophole Example

jimjames

twister1 wrote: »

As I understand this loophole, these accounts have min' monthly pay-in, TSB £500 and max' to receive interest, TSB £2000 (for TSB, amounts above £2000 earn nothing). So does the loophole keep putting in and taking out a fixed amount, say the TSB max' over a year and while this £2000 is out, it is in another account? Also, I still have the problem of the £2000 being only in the TSB account for about 20% of the time to earn the 5%. Or does it mean that while it is out of the TSB account and not earning interest, it is in another account and earning interest?

It's not a Max you can pay in, it's the max balance you get interest on. So keep £2000 in there all the time.

twister1

OK. I see now how this works (silly billy, I am) . Deposit the maximum in each of say, the 3 accounts at the beginning of month1. Then (for the example given) transfer £1000 to the first of the new accounts and continue as in the example. So it is the £1000 that is going in and out each month to satisfy the conditions of the accounts. It is the original amounts sitting in the accounts that will earn the interest. If one works with 2 accounts in each bank for say two partners (watching out for accounts needing a joint account), a total of over £40000 could (in the example given) be in these accounts earning the higher interests available. Do I get it right this time?

LXdaddy

twister1 wrote: »

OK. I see now how this works (silly billy, I am) . Deposit the maximum in each of say, the 3 accounts at the beginning of month1. ... Do I get it right this time?

Basically - yes.

To get interest on £19,000 you must have £19,000 in the accounts. The £1,000 that is going round in a circle is solely meeting the funding requirements. Each of these accounts requires you to deposit a minimum amount eac moth. But they don't require you to not make a withdrawal.

Archi_Bald

LXdaddy wrote: »

But they don't require you to not make a withdrawal.

And they don't require you to have a "spaced" schematic for the minimum deposits. You can process all the minimum deposit amounts on the same day.

nomorekids

Don't forget Bank of Scotland with vantage


3% x 3 on upto £5,000 each account


this is inaddition to TSB, Lloyds Vantage, Tesco and Nationwide Flexdirect

Archi_Bald

Would love to know why MSE Towers keep ignoring the BoS Vantage. It's been available for at least 4 years, more likely a lot longer.