Current Account Savings Loophole

[*Badger*]

I'd imagine a lot of the financially savvy folk on here are already onto this.

http://www.moneysavingexpert.com/savings/savings-l...

Basically using a current account as a savings account to earn higher interest on a fixed balance.

So, I've setup 3 x Bank of Scotland Vantage Accounts (as they are the easiest, no need for DD's etc, just need to pay in a £1000 a month).

But that's my question, it seems there are two possible answers.

Opt 1 - Transfer £1000 in from external to Acc 1 to start off (now). Transfer £1000 from Acc 1 to Acc 2 on 1st day, Transfer £1000 from Acc 2 to Acc 3 on 11th day, Transfer £1000 from Acc 3 back to Acc 1 on 21st day - And repeat, month after month. The same £1000 goes 1-2-3-1-2-3 month after month.

Will that satisfy the only T&C which is "pay in a £1000 a month"? Or do I need to do -

Opt 2 - Transfer £1000 in from external to Acc 1 to start off (on 1st day). On 5th day, transfer back to external. Transfer £1000 in from external to Acc 2 on 11th Day. On 16th Day Transfer back to external. Transfer £1000 in from external to Acc 3 on 21st Day. On 26th day, transfer back to external. Repeat. The same £1000 goes 1-out-2-out-3-out-1-out-2-out-3 month after month.


So Opt 1 or Opt 2 to meet the criteria ?

I've gone Opt 1 (as its easier).

Its not a massive amount, but can earn up to £118 per year per account.

[*Badger*]

It's up to £118 per account per year (based on 5k) so £354 a year for something that, all in, including account setup has taken me about an hour.

Thanks everyone, I have it on a ten day cycle so that each account has the same amount in for the same amount of time to try and make the interest even across all 3 accounts. You don't get interest on the balance over £5k but you do get it up to £5k so that's all good. (as at different times in the monthly cycle each account will have over £5k in for a few days). I wasn't planning on removing the interest month by month as it'd be less than £30 a month, I'll just leave that in.