5% up to £5000 - What if I go over?

753951753951

Okay. This may be a very stupid question. Possibly the stupidest I've ever asked. But..

Bank of Scotland are offering 5% interest on balances up to £5,000 and 0% over that.

Does that mean if I have, say, £7,000 in the account I earn £0 in interest?

Or do I still get 5% interest on the £5,000 and then just 0% on the extra £2,500?

Thanks!

mickey54

753951753951 wrote: »

Okay. This may be a very stupid question. Possibly the stupidest I've ever asked. But..

Bank of Scotland are offering 5% interest on balances up to £5,000 and 0% over that.

Does that mean if I have, say, £7,000 in the account I earn £0 in interest?

Or do I still get 5% interest on the £5,000 and then just 0% on the extra £2,500?

Thanks!

3% interest up to 5k and nothing for the extra 2k

753951753951

Oops sorry yes 3%. And ah okay cool. I was just being silly. Thanks for clarifying!

Eco_Miser

It's not actually silly, I had the same thought. I've a vague memory of an account (not with a high street bank) that did work like this - go over the limit and get nothing.

oldfella

but you can have 3 accounts, so £15K

its the same as Halifax, you need to pass an amount through it each month, I transfer £1K between them.

enthusiasticsaver

If it is 3% rather than 5% why not move to Santander 123 where you get 3% on the whole £7k?

plunt

enthusiasticsaver wrote: »

If it is 3% rather than 5% why not move to Santander 123 where you get 3% on the whole £7k?

only reason not to do that is if:
1) your balance fluctuates a lot
2) the fee of £24 may have some impact on lowering that
3) you dont have direct debits to make it worth while (ofcourse easy to 'fake'


But overall I would agree... or go with the 3 high interest accounts (Nationwide 5%, TSB 5%, Lloyds-club 4%), as that combo will cover 9.5k

Eco_Miser

enthusiasticsaver wrote: »

If it is 3% rather than 5% why not move to Santander 123 where you get 3% on the whole £7k?

Because you actually get £24 less than 3%.

Also some people have had bad experiences with Santander's customer service and want to avoid it.