Getting past the minimum pay in requirements to get high interest account

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InterestGuy
InterestGuy Posts: 4 Newbie
in Budgeting & bank accounts
I would like to set up a Nationwide Flexdirect account or one of their other accounts in order to access the 5% interest in that current account (and also their regular saver 5%).

The minimum pay in is 1000 pounds per month. If I were to earn e.g. 620 pounds p/m and transfer 380 p/m from another bank account belonging to me (0% account) and then pay that bank account 380 back immediately (and do that every month for 12 months), would that mean I would meet the minimum pay in requirement (as described in the moneysavingexpert Bank savings loophole article in April 2017).

My main concern is that this could be interpreted as fraudulent to do that but I guess it technically isn't, especially if moneysavingexpert has recommended it.

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  • soulsaver
    soulsaver Posts: 5,976 Forumite
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    It isn't fraudulent because the requirement is to pay in £1k pm... nothing to do with a net salary.

    You can pay in £500; withdraw it £500 to another current ac one second later and then immediately pay the same £500 back in = £1k.
    Or £334 3 times or £250 4 times... etc.
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  • EarthBoy
    EarthBoy Posts: 3,041 Forumite
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    The only stipulation is that the money must not come from another Nationwide account, whether yours or anyone else's.
  • InterestGuy
    InterestGuy Posts: 4 Newbie
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    Thank you for your replies and for replying quickly.
  • mije1983
    mije1983 Posts: 3,665 Forumite
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    You'd only get the interest on what is in the account though. So don't count on getting interest on the £380 if you will move it back immediately. If that £380 is coming from a 0% (Do you mean interest?) account, why not leave it in the Flex account?


    If you just want access to the regular saver, then there isn't any pay in minimum. Just open the account and leave it, or put £1 in if it makes you feel happier.
  • InterestGuy
    InterestGuy Posts: 4 Newbie
    edited 11 May 2018 at 3:53AM
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    Thank you for this answer.

    To confirm, when I wrote 0%, I did mean a 0% interest current account (from another bank).

    The FlexDirect account has a maximum £2500 at 5%. Any of the balance over £2500 will receive 0% interest. I plan to leave £2500 in the account from the start and also max out the regular saver from some of the payment going into the account each month. The £380 would therefore, in this draft idea, not receive any interest in either account. I would probably put that £380 in another account in which it would receive interest until it is needed for the FlexDirect account again.

    Alternatively, each month I could make a payment of £380 from the £2500 in the FlexDirect account to the 0% account and then quickly back again to the FlexDirect account (making the balance £2500 again). I have learnt in this thread that quick transactions are apparently permitted but I am unsure how temporarily being under £2500 would affect the interest gained (it probably wouldn't affect it much).
  • colsten
    colsten Posts: 17,597 Forumite
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    InterestGuy wrote: »
    Thank you for this answer.

    To confirm, when I wrote 0%, I did mean a 0% interest current account (from another bank).
    Why would you keep any money in a 0% interest account?
  • beefturnmail
    beefturnmail Posts: 906 Forumite
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    InterestGuy wrote: »

    My main concern is that this could be interpreted as fraudulent to do that but I guess it technically isn't, especially if moneysavingexpert has recommended it.

    Fraud requires deception. Since you would not be deceiving anyone, it is not fraud (either technically or in a broad sense)
  • mije1983
    mije1983 Posts: 3,665 Forumite
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    InterestGuy wrote: »
    I plan to leave £2500 in the account from the start and also max out the regular saver from some of the payment going into the account each month.




    Ah ok. That makes more sense and is exactly what I, and others, do. Moving money around to meet the pay-in requirements for interest is commonplace.



    But as colsten says, why have any money in a non interest paying account? Have you had a look at interest paying accounts? Even 2% is better than 0% unless your account has other benefits that outweigh the interest for you.
  • InterestGuy
    InterestGuy Posts: 4 Newbie
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    @beefturnmail - Thanks for adding this, I definitely don't want to get in trouble!

    @mije1983, colsten - There is no very good reason and you are both 100% correct! Just I posted this as a provisional thing and it wasn't the final banking set up I was going to have. I suppose the only possible answer as to why keep any money in the 0% account was that it was only going to be there for a short period of time and also it may be just a hassle to close that account.

    @mije1983 - I could possibly set up one of those higher rate accounts although may need to set up direct debits etc.
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