Multiple Bank Accounts - Claiming cashback and High Interest

AdamW85

Good Morning all my fellow MSE!

It is my first post on the forum, but I have been a user of the site for a number of years.

I was watching Martin on the TV a few weeks back and the topic of creating multiple bank accounts for the purpose of claiming cashback and high interest rates was discussed.

As I understood it, people are setting up a number of accounts (with either decent cashback or high interest rates) and every month transferring money between each of the accounts (to satisfy each accounts criteria) and reaping the rewards. One couple said they had earnt over 2k in a year by doing so. For what appears to be very little input (bar some careful management/tracking) its seems a nice easy earner.

I've had a look on the site, but I cannot really see a guide to how this actually works. I have looked at the individual bank accounts that offer either high interest rates or cashback, but not found anything related to the actual linking of accounts.

I understood from the show that it can require some careful management of money and monthly tracking, but I am happy and comfortable doing this.

In terms of monthly income, there would be around £2500 to 'play' with. Looking at the various accounts it means all are available (I think) in terms of minimum monthly deposit etc.

1. Firstly, does this type of arrangement have a name, and is it explained anywhere on this site?
2. If not, is it possible for someone to explain how to go about it?

Thanks in advance for any help. Will be much appreciated.

mel48rose

Hi and welcome. I think What you are talking about Martin calls it the savings 5% Loophole and you can find it under that.

msallen

.... or you can read the countless threads on here about it.

mel48rose

There are hundreds of threads on here yes. Some clever people too:T

AdamW85

Hi, thanks for the replies.

MSALLEN, I have tried searching but couldn't find anything. I only came across regular savings accounts etc.

If you could point me to a particular thread that would be great

Frogletina

AdamW85 wrote: »

Hi, thanks for the replies.

MSALLEN, I have tried searching but couldn't find anything. I only came across regular savings accounts etc.

If you could point me to a particular thread that would be great

https://forums.moneysavingexpert.com/discussion/5005862

anoncol

AdamW85 wrote: »

Hi, thanks for the replies.

MSALLEN, I have tried searching but couldn't find anything. I only came across regular savings accounts etc.

If you could point me to a particular thread that would be great

It's a quick link at the top of this very page.

enthusiasticsaver

It just involves filling the highest interest earning accounts as far as you can and shifting money by standing order each month to fulfil the income criteria. I do it all by standing order on the same day each month. Make sure you read the terms and conditions carefully though as any deviation from that means they will not pay out the interest. Also bear in mind that some mean a calendar month and others mean a month from when you opened the account. Nationwide, TSB, Lloyds, BOS, Tescos and Santander are all good accounts to look at and regular savers for Nationwide, TSB and First Direct.

Katiehound

One of the best was the HSBC Advance switch deal with an ISA deal and 6% interest regular saver.
You need to check on the weekly MSE e-mail for current deals and sometimes act quite quickly.