Savings account loop question....

jdw2000

Question about the BoS Vantage account:

You can open 3 accounts in one person's name... You need 2 DDs... is that 2 DDs for all three accounts, or do you need 2 DDs for each individual account?



I only have 5 DDs in total... and I'm using those for my Santander 123 account to avoid the £5 monthly fee. (My DDs cover £4.50 of it).

YorkshireBoy

jdw2000 wrote: »

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

Just a bit!

TheShape

jdw2000 wrote: »

Question about the BoS Vantage account:

You can open 3 accounts in one person's name... You need 2 DDs... is that 2 DDs for all three accounts, or do you need 2 DDs for each individual account?



I only have 5 DDs in total... and I'm using those for my Santander 123 account to avoid the £5 monthly fee. (My DDs cover £4.50 of it).

I've only (currently) got one BOS account but I understand you need 2 DDs per account.

Good idea to apply for a Tesco Current account ASAP because when you setup Tesco Intenet banking you can then get the two Tesco savings accounts (Internet Saver and Instant Saver).

It may not be strictly necessary to have the two saving accounts but you can set up a DD on each account so as to draw two DDs from each BOS current account. Using the two savings accounts makes sure that the DD reference numbers are different. The DDs only need to be for £1 each.

darkidoe

I am ditching the Santander 123 because I am not earning nearly enough cashback to warrant the fee. Going to grab a cashback from one of the switching offers! You might want to consider the same, splitting the £20k into smaller pots similar to what YorkshireBoy's example.

jdw2000

TheShape wrote: »

I've only (currently) got one BOS account but I understand you need 2 DDs per account.

Good idea to apply for a Tesco Current account ASAP because when you setup Tesco Intenet banking you can then get the two Tesco savings accounts (Internet Saver and Instant Saver).

It may not be strictly necessary to have the two saving accounts but you can set up a DD on each account so as to draw two DDs from each BOS current account. Using the two savings accounts makes sure that the DD reference numbers are different. The DDs only need to be for £1 each.

Thanks for that. Ok, I didn't know that you can set up DDs from accounts. I thought DDs were only from external companies for things like phone bills and utility bills.

Last night I did indeed arrange to have the Tesco account. In fact, I arranged for two of them, as each person can have two, of course.

I wonder if I can then get an Instant Saver and and an Internet Saver for each of the two Tesco accounts and therefore have 4 DDs in order to service two different BoS accounts?

jdw2000

darkidoe wrote: »

I am ditching the Santander 123 because I am not earning nearly enough cashback to warrant the fee. Going to grab a cashback from one of the switching offers! You might want to consider the same, splitting the £20k into smaller pots similar to what YorkshireBoy's example.

Yes, I am sold on the splitting to get every penny you can out of this. Makes sense to me.


Regarding the Santander 123 account's £5 fee, I can get £4.51 of it back with cashback. So I think I can live with paying the 49p per month. My DDs will likely increase slightly soon so it will be less again.

Vortigern

jdw2000 wrote: »

I wonder if I can then get an Instant Saver and and an Internet Saver for each of the two Tesco accounts and therefore have 4 DDs in order to service two different BoS accounts?

One Internet Saver and one Instant Saver will furnish all the DDs you need.

ETA: You are not limited to 1 DD per saver account.

jdw2000

Vortigern wrote: »

One Internet Saver and one Instant Saver will furnish all the DDs you need.

ETA: You are not limited to 1 DD per saver account.

Wow, that's a trick of the trade. Very interesting. Thanks!


Well, that should be good to go then. Just waiting for the accounts to be confirmed.



Thanks very much, all!

Eco_Miser

jdw2000 wrote: »

Thanks for that. Ok, I didn't know that you can set up DDs from accounts. I thought DDs were only from external companies

They are, in this case from Tesco bank.
Many savings accounts used to allow you to fund them by DD from your current account, but only one DD, and most of them have withdrawn that facility.
Tesco not only still allow it, but allow DDs from an apparently unlimited number of current accounts.

enthusiasticsaver

Yes Santander and Nationwide can feed each other. I also have the Tesco accounts, TSB and Lloyds Club and recycle £1500 round all of them. I did have a BOS one but recycled it all into Nationwide, Lloyds and FD regular savers at 4,5 and 6%. I think this gravy train may soon be ending though as a lot of the rates are now decreasing.