Current account that pays upto 5% interest on balances upto £2.5k

26
Posted 7th Feb
A current account that pays upto 5% interest on balances upto £2.5k

From my crude maths this account will pay out upto £125 per month on a balance of £2.5k. the only stipulation is that you must pay in at least £1k per month. You can also have one a count in your name and a joint account too.

So effectively unless I'm wrong that means one account containing £2.5k will yield £1500 in a year (as long as £1k is put on each month) so for two accounts containing £2.5k each you can earn £3.k interest effectively turning £5k into £8k in 12 months!.

I had to check my numbers and also call nationwide who confirmed my maths and assumptions were right!
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you need a new calculator, I take it its a Nationwide account.
If so you get around £10.38 a month in interest, Plus if you get a referral to switch to them you get £100.
5% is £125.00 but you forgot to devide it by 12 months
Edited by: "bigwheels" 7th Feb
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you need a new calculator, I take it its a Nationwide account.
If so you get around £10.38 a month in interest, Plus if you get a referral to switch to them you get £100.
5% is £125.00 but you forgot to devide it by 12 months
Edited by: "bigwheels" 7th Feb
What account are we talking about?
It says 4.89% per annum so you won’t get what you are saying
5% is per year not month, you made me laugh
Taxable?
veedubjai07/02/2020 16:10

Taxable?



Only after £1000 of interest in a year not including ISA
£1500 in interest a year...
Interest on a savings/Bank account is this a new thing. (I think they are all dropping to 0.1% at the end of Febuary).
bigwheels07/02/2020 16:01

you need a new calculator, I take it its a Nationwide account.If so you …you need a new calculator, I take it its a Nationwide account.If so you get around £10.38 a month in interest, Plus if you get a referral to switch to them you get £100.5% is £125.00 but you forgot to devide it by 12 months


It is a Nationwide

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Good Troll, have the same account and defitnely doesn't pay that much on £2.5k
JulianHart07/02/2020 16:23

It is a Nationwide[Image]



I know as ive got that account.
Thats how I knew how much it paid each month as I just looked at my statement.
bigwheels07/02/2020 16:27

I know as ive got that account.Thats how I knew how much it paid each …I know as ive got that account.Thats how I knew how much it paid each month as I just looked at my statement.


How long have you had it? Are you still on the introductory offer?
No it ran out 3 months ago.
But it was very good as when I joined they had the regular saver as well. But its finished now.
bigwheels07/02/2020 16:33

No it ran out 3 months ago.But it was very good as when I joined they had …No it ran out 3 months ago.But it was very good as when I joined they had the regular saver as well. But its finished now.


Ok, I should point out I'm only using it as a savings account no direct debits etc
JulianHart07/02/2020 16:34

Ok, I should point out I'm only using it as a savings account no direct …Ok, I should point out I'm only using it as a savings account no direct debits etc



From memory I think you need 2 active direct debits, I Changed over Paypal and a credit card for direct debit, For a card i did not use much.
I then made 1 purchase on credit card to keep direct debit live and the same with Paypal.
On the first of the month I put in £1000 via bank transfer and sent it back to my main bank on the second of each month.
With the referral and interest I go £225.00 in a year.
bigwheels07/02/2020 16:44

From memory I think you need 2 active direct debits, I Changed over Paypal …From memory I think you need 2 active direct debits, I Changed over Paypal and a credit card for direct debit, For a card i did not use much.I then made 1 purchase on credit card to keep direct debit live and the same with Paypal.On the first of the month I put in £1000 via bank transfer and sent it back to my main bank on the second of each month.With the referral and interest I go £225.00 in a year.


I think the interest is calculated daily across the course of the month and paid out the 1st of the next month, my plans are to deposit £2.5k on the 1st of the month then on the 2nd of the following month deposit a further £1k and take out £1k keeping the balance always at £2.5k whilst still putting £1k in each month
JulianHart07/02/2020 16:57

I think the interest is calculated daily across the course of the month …I think the interest is calculated daily across the course of the month and paid out the 1st of the next month, my plans are to deposit £2.5k on the 1st of the month then on the 2nd of the following month deposit a further £1k and take out £1k keeping the balance always at £2.5k whilst still putting £1k in each month



Thats the hard way to do it.
If you have £2500 put it in and leave it be.
Then put in £200 one day and pay it out the next on 5 occasions if you dont have £1000 spare.. Then you dont risk any interest being missed.
That way you only need £200 extra.
I have a TSB account with £1500 in it for 3% a month.
I put in £500 to meet the T&C then sent it to Nationwide, Then to main account and back to Nationwide a few day later.
Round and round the same £500 went.
bigwheels07/02/2020 17:06

Thats the hard way to do it.If you have £2500 put it in and leave it …Thats the hard way to do it.If you have £2500 put it in and leave it be.Then put in £200 one day and pay it out the next on 5 occasions if you dont have £1000 spare.. Then you dont risk any interest being missed.That way you only need £200 extra.I have a TSB account with £1500 in it for 3% a month.I put in £500 to meet the T&C then sent it to Nationwide, Then to main account and back to Nationwide a few day later.Round and round the same £500 went.


I'd rather just have 2 transactions per month as I'll be doing it for 2 accounts
Fair enough, Do for get to get referred.
Seems a lot of hassle to earn £10 a month...
Bargainhead07/02/2020 20:34

Seems a lot of hassle to earn £10 a month...


3 minutes work a month for £10, ok not worth it then.
It took me ten minutes to set up the transfers from one account to another in the first month.
So I made £125 for ten minutes work.
I have this account the interest is capped at £10.38 at 5%. Interest is calculated annually therefore £125 earned in interest after 12 months subject to taxation.

Upon account opening deposit £2501 - this is now locked in for 12 months. Setup a monthly standing order for £1k from another bank account for any date in the month to be paid into the Nationwide account.

Setup a standing order from the Nationwide account for £1k a day or two after the initial transfer. With the intention of returning those funds back to the original account.

This is now and automatic process with minimal effort to earn a tenner a month, appreciate bigwheels has pointed this out but I hope my post makes things a bit clearer to the OP.
Edited by: "ChrisKaru" 7th Feb
If Nationwide confirmed your maths was correct then I wouldn’t be trusting them with my money
Oh dear, some people do worry me
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