So far I can't see any reason not to open a TSB Current Account Plus and use it as a savings account? Unless I am missing something in the Ts and Cs you don't need to move anything to them, and just need to put £500 a month in. Why can't I just drop £2k in and transfer £500 through it each month and enjoy the 5%?
TSB 5%
- Thread starter Skeeter
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Soldato
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- Blyth, Northumberland
They may stop paying 5% on balances over a certain amount. Nationwide do 
Edit: "That's 5% AER/4.89% gross variable interest on balances up to £2,000 only".
Edit 2: So everything going in there after £2,000 will be earning next to no interest and would be better off in a savings account. You get about £100 off them in interest, which will be £8/month or thereabouts. We have a similar account and filled it up to the limit, everything else goes into savings.
Edit: "That's 5% AER/4.89% gross variable interest on balances up to £2,000 only".
Edit 2: So everything going in there after £2,000 will be earning next to no interest and would be better off in a savings account. You get about £100 off them in interest, which will be £8/month or thereabouts. We have a similar account and filled it up to the limit, everything else goes into savings.
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They may stop paying 5% on balances over a certain amount. Nationwide do
It's a 2k limit. But considering my savings are earning bugger all, getting 5% on 2k of it is better than a kick in the teeth.
If there's more like this about you could split your savings up and spread them around a load of current accounts, and get much more than all savings accounts are offering?
Get a Halifax reward account. £5 a month just for having your pay in there a two direct debits going out.
Then move it into a Santander 123 and pay the rest of bills. I get another £15 a month off that ( mortgage is with abbey(Santander) though which helps
Then move it into a Santander 123 and pay the rest of bills. I get another £15 a month off that ( mortgage is with abbey(Santander) though which helps
My Santander savings account is getting something depressing like 1.3% pre tax. But that's still better than the 0.5% my Halifax ISA offers.
Savings are a complete waste of time at the moment. The thing I'm most looking forward to about owning a house is having somewhere to put my savings that's actually appreciating.
Savings are a complete waste of time at the moment. The thing I'm most looking forward to about owning a house is having somewhere to put my savings that's actually appreciating.
I have an offset mortgage account which does better than any bank account possibly could on account of me being a higher tax rate payer.
But failing that, yes, you could set up the account, and if there are any others, set them all up too. Then it's simply a case of hopping the money between them. So set up a standing order for the £500 into the account, then the next day make it move to another account, and so on, until it lands in whatever account you need it to stay in, and you have met the criteria for all accounts. I would have done that had I not got my offset account, where I simply don't pay the mortgage interest on the money in the account. It works out as the equivalent of getting 7.5% on my money, so can't really be beaten.
But failing that, yes, you could set up the account, and if there are any others, set them all up too. Then it's simply a case of hopping the money between them. So set up a standing order for the £500 into the account, then the next day make it move to another account, and so on, until it lands in whatever account you need it to stay in, and you have met the criteria for all accounts. I would have done that had I not got my offset account, where I simply don't pay the mortgage interest on the money in the account. It works out as the equivalent of getting 7.5% on my money, so can't really be beaten.
I'm talking about current accounts not savings. You can be making £60 a year from Halifax without the need for any capital. Simply moving your money.
Why don't you get an isa?
Officially a 5% current account would be taxed anyway so that could drop to 3%
Because taxed savings are still ahead of most ISAs. I've already got a Halifax reward account for the £5 a month.
You get the £60 a year for doing nothing idea though yeah ?
Yep, already got a Reward Account. And 0% CCs with the balance in savings. Might do this TSB thing too. Basically it's hard work to even make a small amount of savings earn anything at the moment.
the 500 can instantly leave and go to a savings account all with direct debits though, so hes permanently got 2k in there except for a few minute/hours where hell ahve 2.5
As I say shares is the best bet but it's not for the risk averse and requires quite a lot of research.
Anything to milk to banks is good. So that TSB idea works. You could also look at stoozing? I just got £6k from a barc card that I moved into current account at 1.9 fee for 12 months
Anything to milk to banks is good. So that TSB idea works. You could also look at stoozing? I just got £6k from a barc card that I moved into current account at 1.9 fee for 12 months