£1k minimum pay in for 5% rate, help please

Hutchch0920

I've just opened a Nationwide FlexDirect account to take advantage of the 5% interest rate on in credit balances up to £2.5k.

I am keen to keep my everyday banking and savings separate and would prefer to continue to pay my wages into my existing account.

My thinking was, transfer £2.5k savings to FlexDirect, then every month pay in £1k from an easy access e-saver (Halifax product which has no penalties for withdrawal, although interest rate is minimal) and pay it back out into the e-saver account a few days later ready for next month. Will this qualify?

Dan83

Yes that's fine, I do mine the same day

Scarpacci

Yes, that would be fine. Although there's no need even for any money to come from another account. You could simply send £1k from your FlexDirect out and then send it back again each month.

Many people wouldn't even keep the extra £1k in their account for longer than it takes for them to send the payment out again. Although it may feel cheeky, it's completely within the rules and is very common around these parts.

ColdIron

That will work just fine, or you could move £1,000 from the FlexDirect out to somewhere and straight back in again, you don't need to wait a few days. Standing orders can automate the process for you

Dan83

if you wanted to, why not set up a standing order?

Saving>nationwide, then a few days later nationwide>saving.

I say a few days later because ideally you want your £1000 to be paid in before its paid out, the few days between transactions will cover any bank holidays/weekends?

Hutchch0920

Perfect, thank you all for your speedy responses!!

badger09

First of all, can you move £1k to Nationwide FlexDirect every month straight from your Halifax easy access e saver? Or do you mean via a Halifax current account?

Also, instead of sending the £1k back to your low interest Halifax saver, why not pay up to £500 per month into a Nationwide Flexclusive Regular Saver @ 5%?

Eco_Miser

Dan83 wrote: »

if you wanted to, why not set up a standing order?

Saving>nationwide, then a few days later nationwide>saving.

I say a few days later because ideally you want your £1000 to be paid in before its paid out, the few days between transactions will cover any bank holidays/weekends?

If you want to be certain the in comes before out, you need 4 clear days, that is, pay out on the fifth day, to avoid problems at Easter (always four non-banking days) and Christmas (sometimes four non-banking days). However every bank except Tesco currently skip the same days, so it doesn't matter if the SOs are delayed, they're all delayed by the same amount.

Further, so long as all the accounts have sufficient in them, it doesn't matter if the out happens before the in. Halifax (for the £5 reward) would normally be the one that doesn't have enough.
Using faster payments manually is another alternative.

jimjames

Why are you keeping any money in a low interest savings account when you can get 5%?

Hutchch0920

jimjames wrote: »

Why are you keeping any money in a low interest savings account when you can get 5%?

I did eventually also reach this conclusion, so I've applied for a 5% regular saver. Part of the reason why I hadn't decided this originally was because I wasn't sure if I wanted to "lock away" cash for 12 months and then forfeit the interest if I needed it and I was looking for alternatives.

However my partner and I have sort of come to a decision on what we'll be doing in 12 months meaning I can now put it to one side.

Jeems

There is absolutely no need to keep the money in your account for a couple days before transferring it out as a way of being polite.

I make the transfers in and out immediately, few different browser windows open, job done.