The 5% Savings loophole

governmentloser

I have read through the MSE article on the 5% savings loophole for those looking to maximise the interest potential on £30k's worth of bank investments and it looks good. Only problem I have is that I am now single and find myself unexpectedly with £30k to invest and want to make work for me. How about putting together an example for singletons as I am sure that I cannot be alone in being newly single? It would really help me but if it can't be done on the website could someone generate a similar idiots guide for me please? Thanks.

YorkshireBoy

The article you read provides such an idiots guide. Maybe read it again?


http://www.moneysavingexpert.com/savings/savings-loophole


A "singleton" can get £50.5K making 3-5% AER, so quite adequate for your £30K.

fun4everyone

I am impressed you wait 6 years to make your first post .


It is easy enough if you are single to put away 30k in bank accounts at a good rate of interest, the article makes it clear how many accounts of each type one person can have. Mostly it is one but for example at Tesco you can still have 2 current accounts. What you miss out on is joint account capability.

bigadaj

For a slightly more idiot proof guide then have a look at bankaccountsavings.co.uk, ignore their direct debit suggestions though.

This will show you exactly what you should do whether you want things to either maximise interest or for ease of use and make less money.

They miss out the nationwide flex direct account as its for a year only, and their are numerous regular savers you can use detailed on this forum.

xylophone

For absolute ease of use, you could have a Santander 123 as your main account ( pay in your salary) with all cash back DDs on it, (£20,000) two Tesco current accounts (£6000) and a Lloyds Club (balance) - put your non cash back DDs on this account and move the monthly interest accruing on other accounts to Lloyds.

You would set up a £1500 standing order from Santander to Lloyds and from Lloyds to Santander for the same day each month.

Once you had all the above up and running you might look at opening a TSB plus and a Nationwide Flexdirect, bearing in mind monthly pay in and technique to meet this as above.

squaredoggy1

But things are changing now, BOS are altering from September to 2 DD's per account, Santander will reduce the interest on A/C's - will other follow I bet they will - we have £150k spead acrros these accounts and will to play games to keep them!

governmentloser

Thanks to you all for the pointers ... now what to do with the rest of the wedge!

Revolexis

xylophone wrote: »

For absolute ease of use, you could have a Santander 123 as your main account ( pay in your salary) with all cash back DDs on it, (£20,000) two Tesco current accounts (£6000) and a Lloyds Club (balance) - put your non cash back DDs on this account and move the monthly interest accruing on other accounts to Lloyds.

You would set up a £1500 standing order from Santander to Lloyds and from Lloyds to Santander for the same day each month.

Once you had all the above up and running you might look at opening a TSB plus and a Nationwide Flexdirect, bearing in mind monthly pay in and technique to meet this as above.

Highly recommend this, keeps your money working for you whilst you can still have access to it if you find a good opportunity

If you're feeling extreme then you can do some low level crowd funding on Crowdcube with whatever is left over :P

uk1

The LLoyds Club accounts look interesting for us and I have read the Ts and Cs but could not find the answer.

Is there any qualifying criteria for the £1500 source? I have in mind three acccounts ie one each and one joint and having the joint account funded from Santander. So any tips on how to make the cash flow through the three acounts would be appreciated?

Thanks.

Jeff

YorkshireBoy

uk1 wrote: »

The LLoyds Club accounts look interesting for us and I have read the Ts and Cs but could not find the answer.

Is there any qualifying criteria for the £1500 source? I have in mind three acccounts ie one each and one joint and having the joint account funded from Santander. So any tips on how to make the cash flow through the three acounts would be appreciated?

Thanks.

Jeff

If the T&Cs don't say the funding has to come from outside Lloyds then it doesn't.

Tips? Assuming all are full, then...

£1,500 SOs from 1->2->3->1
2 DDs on each account, each pulling £8
All set up for the 3rd of the month
Log in at least once per month to make sure it's all happened
Job done!

uk1

YorkshireBoy wrote: »

If the T&Cs don't say the funding has to come from outside Lloyds then it doesn't.

Tips? Assuming all are full, then...

£1,500 SOs from 1->2->3->1
2 DDs on each account, each pulling £8
All set up for the 3rd of the month
Log in at least once per month to make sure it's all happened
Job done!

Thanks for your trouble.

When you say "2 DDs on each account pulling £8", I'm afraid I don't understand.

Thanks,

Jeff