Alliance & Leicester Premier Direct Current Account

ssmoremoney

I have just opened a premier direct current account and I get a plus saver account linked to it. I have now been given my online access. I have been given quite a substantial overdraft that has not been used at the moment because we are in the process of switching.

I am considering moving money from my current account to my savings account, giving me a large overdrawn balance on a 0% overdraft rate. I will then earn money on my savings at 5.5%. Has any one done this? It seems a bit of a loophole!

They pay 8.5% on my credit balances so its worth keeping money in there, but if I get near to my overdraft limit - I might as well make my self totally overdrawn and move a lot of money to the savings account again.

Has any one tried this or have any thoughts on it.

PROLIANT

the intrest rate on the current account is higher @ 8.5%

ssmoremoney

I think maybe I have not explained myself very well.
If I have zero in my bank account, I earn zero interest, if I make myself overdrawn by 1000 by transfering it to my savings account I will earn 5.5% interest.

If I only have £10 in my account earning 8.5% interest, it would be better to make myself £1000 overdrawn by moving some money to my savings account. My overdraft has 0% for a year and I would be earning 5.5% interest on £1000.

timnicebutdim_2

I've thought about doing this myself as the overdraft is interest free for a year so the money could be earning interest in a savings account. I suppose it's just a case of transferring the balance from the savings account back to the current account before the promotion ends and ensuring that the overdraft limit isn't breached (i.e. keeping an eye on it). I've heard transfers can take more than a day between A&L accounts.

I'm estimating £1000 would make about £50-£100 in a year (using a simple savings calculator).

KiKi

Hi there

Yes, you can do that...it's what many people do with 0% interest CCs; it's called 'stoozing.' Just make sure you stay within the terms and conditions of the account.

KiKi