TSB Classic Plus - 5% Interest?

FrankRizzo

TSB Classic Plus 5% @ £2k + £125 switch credit (2 direct debits & £500 pay in, ENDS 1ST NOV)

Ive been looking at the above deal in particular the 5% interest, I have £2k in savings which I'm keeping as a deposit for a car. Depending on how my current car goes I might buy new car as early as April next year, however ideally I want the current car to run as long as possible.

Soooo my question is if you withdraw during the year the account is open does the interest go down or do I get the 5% regardless what the balance is?

jimjames

Interest is paid at the current level whatever balance is in the account as long as you meet the criteria (currently paying in £500 and going paperless)

There is no end date for this account so you get 5% on any balance up to £2000.

FrankRizzo

Thanks for your reply. I am going to go for the TSB account.

I was about to apply for the First Direct Regular Saver based on the 6% interest and then I noticed if you make a withdrawal then FirstDirect will close your account! Doesn't seem that good a deal after all.

Zanderman

FrankRizzo wrote: »

Thanks for your reply. I am going to go for the TSB account.

I was about to apply for the First Direct Regular Saver based on the 6% interest and then I noticed if you make a withdrawal then FirstDirect will close your account! Doesn't seem that good a deal after all.

If you have £2k ready to deposit the TSB 5% beats the First Direct Regular Saver 6% hands down.

You can pay it all in to TSB and get 5% on it all, from day 1. The FD Reg Saver only allows £250 (or maybe £300 can't remember!) per month, so the 6% is only partial for most months, dwindling further for every month. Only the first month gets a full 6%.

mspritch

That was quick. I was expecting to have to wait for an approval form, send that off, etc. Just opened the account online, it took me longer to find a "local" branch (30 miles away) than anything else

Looks like a quick win, too. Fill it with £2000 then deposit £500 in on one day, suck it back out the next. No need to transfer any DDs over to the account. I think the interest is £6.70 a month.

YorkshireBoy

mspritch wrote: »

suck it back out the next.

Why wait a day?

I think the interest is £6.70 a month.

Taking an average 30 day 'billing period', it's £6.43 after BR tax...possibly £8.04 from next May.

fishpond

YorkshireBoy wrote: »

Why wait a day? Taking an average 30 day 'billing period', it's £6.43 after BR tax...possibly £8.04 from next May.

? please, What is BR tax?

YorkshireBoy

Basic rate

jennifernil

Basic Rate......20%

fishpond

YorkshireBoy wrote: »

Basic rate

Thank You.

mspritch

Cheers. I'm in the process of setting up extra accounts and letting my salary meander through them for extra interest. Added a Tesco and a TSB so far, with a second Tesco on order, will wait a few weeks then add a Club Lloyds and a Bank of Scotland Vantage.

Will be interesting to see if my Noddle score takes a hit, it's on 650 at the mo.