Exploiting Bank Loopholes

RG2015

There have been a few examples of people using bank accounts in a way the bank didn't intend, to gain extra interest.

Is this acceptable as long as the bank allows it?

Some examples of this are as follows.

• Opening 50 Virgin Money Plus current accounts with each paying 2% on balances up to £1,000.
• Putting a lump sum of £1,000 in a NatWest/RBS digital saver which states that you can pay in up to £150 per month to earn 3.25% interest.
• Opening Virgin Money regular saver intended for first time buyers without any intention of buying a house, for a high interest rate.
• Ditto for the Coventry BS First Home Saver.

eskbanker

* waits for bogus justifications about how 'we' bailed them out and it's time to get our own back, etc *

sienew

If it's allowed by the banks T&C's, it's technically acceptable even if it's unfair.

Malthusian

1 would almost certainly be rumbled instantly. Virgin knows how many accounts you have in your name - it's an Anti Money Laundering requirement. They would close down all of the accounts and send you your money back.
I would have thought that 2 would be a non-starter - wouldn't NatWest just reject the payment? 
For 3, apparently you have to download the "Home Buying Coach" app and earn enough "Coach Credits" by "completing items on their checklist and reading articles in the app which enhance their knowledge of the process".
If you're clever enough to come up with wizard wheezes like this and blag the app into giving you enough credits, surely there are easier ways to earn at most £61 a month (less in the early months until you hit the maximum balance).

Vortigern

eskbanker said:

* waits for bogus justifications about how 'we' bailed them out and it's time to get our own back, etc *

^^This; and getting back some of thousands I've paid them in mortgage interest.

[Deleted User]

Malthusian said:

1 would almost certainly be rumbled instantly. Virgin knows how many accounts you have in your name - it's an Anti Money Laundering requirement. They would close down all of the accounts and send you your money back.
I would have thought that 2 would be a non-starter - wouldn't NatWest just reject the payment? 
For 3, apparently you have to download the "Home Buying Coach" app and earn enough "Coach Credits" by "completing items on their checklist and reading articles in the app which enhance their knowledge of the process".
If you're clever enough to come up with wizard wheezes like this and blag the app into giving you enough credits, surely there are easier ways to earn at most £61 a month (less in the early months until you hit the maximum balance).

2) Yes the terms of the account say that if you pay in more than £150 a month (allowing for the fact you can top it up) they will return it and can potentially close all your accounts with 60 days notice. I have heard before that people got away with it early on, the terms now are very clear.

soulsaver

The Coventry offer is legal - not a loophole. It doesn't have to be your first home you're saving for, can be your child's, nephew etc.

There is at least one poster on here with multiple VM 2% accounts.

eta: And good  luck to them (it's not me) - I've been declined... a few times.

Section62

soulsaver said:

The Coventry offer is legal - not a loophole. It doesn't have to be your first home you're saving for, can be your child's, nephew etc.

What's more the T&C's only reference the FTB status in terms of eligibility for the celebratory bonus of £500, not for holding the account in the first place.

Also the T&Cs refer to "you, or a member of your family" without defining the meaning of "your family" or specifying any limits on degree of kinship/affinity.

Given the recent news that more babies are born 'out of wedlock' than to married parents, it would be a brave building society that decided to impose its own ideas and values on 'family' life through the terms and conditions of a savings account.