Savings account loop question....

jdw2000

Hi all,

I am in the process of opening a few savings accounts to take advantage of the interest rates on offer.

So far, I have opened a Santander 123 Account, a Nationwide account, and an NS&I savings account for any left over.

I am toying with the idea of getting another one, but I'm not sure I can be bothered.


Question: Can the Santander and Nationwide accounts pay each other each month? Or do I need a 3rd account in order to have a "loop"?

The NS&I account does not have an automatic standing order facility, so I am hoping that the Santander and the Nationwide can service each other in this regard.

YorkshireBoy

Yes they can cross-fund each other.

How much money is involved here?...because Santander and NS&I wouldn't be my top pick.

chockydavid1983

They can pay each other no problem so no need to set up a 3rd account for that reason.

jdw2000

YorkshireBoy wrote: »

Yes they can cross-fund each other.

How much money is involved here?...because Santander and NS&I wouldn't be my top pick.

What would your top picks be?


£20K in Santander - all my DDs come from that too, which get about £4.50 recouped of the £5 cost per month. £2,500 in Nationwide. About £27K in NS&I.

Toying with the idea of putting some of the NS&I savings into the BoS Vantage. Problem being, 1) Will they cut their rates? 2) I'm not sure which DDs I can use for it... Do standing orders from other bank accounts count? Or do they have to be proper DDs from service providers?

TheShape

Tesco is the obvious choice as they don't require funding or DDs. 2 accounts for 3% on 3k each.

2 Tesco savings accounts will then take care of all your DD needs.

jdw2000

TheShape wrote: »

Tesco is the obvious choice as they don't require funding or DDs. 2 accounts for 3% on 3k each.

2 Tesco savings accounts will then take care of all your DD needs.

Thanks for that. So the DDs you need for the new accounts (the two that Vantage ask for, for example), can be standing orders going to other bank accounts?

So the two DDs on Vantage can be going to the two Tesco accounts (or whichever bank accounts you have)?

YorkshireBoy

jdw2000 wrote: »

What would your top picks be?

I have (or will have come early next year following recent announcements), in my sole name...

£2.5K @ 5% with Nationwide
£15K @ 3% with BoS
£6K @ 3% with Tesco
Some @ 3% with TSB
£5K @ 2% with Lloyds
£3K @ 1.5% with YB
£20K @ 1.5% with Santander (fee nearly covered)

Santander, along with income, feeds multiple regular savers...none of which are lower than 2%, and some pay 5-6%.

All figures quoted are AER.

You may not want to go to as much trouble as that, but money makes money!

YorkshireBoy

jdw2000 wrote: »

Thanks for that. So the DDs you need for the new accounts (the two that Vantage ask for, for example), can be standing orders going to other bank accounts?

A Standing Order is not a Direct Debit, it's a Standing Order.

jdw2000

YorkshireBoy wrote: »

I have (or will have come early next year following recent announcements), in my sole name...

£2.5K @ 5% with Nationwide
£15K @ 3% with BoS
£6K @ 3% with Tesco
Some @ 3% with TSB
£5K @ 2% with Lloyds
£3K @ 1.5% with YB
£20K @ 1.5% with Santander (fee nearly covered)

Santander, along with income, feeds multiple regular savers...none of which are lower than 2%, and some pay 5-6%.

All figures quoted are AER.

You may not want to go to as much trouble as that, but money makes money!

Wow, that is impressive! I wasn't accounting for being able to have more than one account with Tesco or BoS.

Not sure which DDs I can move to other accounts. For that reason, I guess the Tesco ones look attractive as they don't need them.

ceredigion

YorkshireBoy wrote: »

I have (or will have come early next year following recent announcements), in my sole name...

£2.5K @ 5% with Nationwide
£15K @ 3% with BoS
£6K @ 3% with Tesco
Some @ 3% with TSB
£5K @ 2% with Lloyds
£3K @ 1.5% with YB
£20K @ 1.5% with Santander (fee nearly covered)

Santander, along with income, feeds multiple regular savers...none of which are lower than 2%, and some pay 5-6%.

All figures quoted are AER.

You may not want to go to as much trouble as that, but money makes money!

Some. :rotfl:

jdw2000

YorkshireBoy wrote: »

I have (or will have come early next year following recent announcements), in my sole name...

£2.5K @ 5% with Nationwide
£15K @ 3% with BoS
£6K @ 3% with Tesco
Some @ 3% with TSB
£5K @ 2% with Lloyds
£3K @ 1.5% with YB
£20K @ 1.5% with Santander (fee nearly covered)

Santander, along with income, feeds multiple regular savers...none of which are lower than 2%, and some pay 5-6%.

All figures quoted are AER.

You may not want to go to as much trouble as that, but money makes money!

Just doing some maths for my own savings as to what kind of interest I could be getting.

I'm assuming you'd be paying tax on your lot as your interest is over £1000 per year?