Could I do this to take advantage of multiple current accounts?

I am looking at taking advantage of some the current accounts available with good interest rates and was just wondering if it's possible to satisfy the criteria while moving money between accounts.


For example, the Club Lloyd's Current Account offers up to 4.00% AER on balances of £4,000 to £5,000 so long as £1,500 is paid in per month and two separate direct debits are paid out per month. The Nationwide FlexDirect Current Account offers 5% AER on balances up to £2,500 if a minimum of £1,000 is paid in each month. The Halifax Reward Current Account pays £5 a month with a minimum monthly funding of £750 and two separate direct debits.


Let's say I have £4,000 in my Club Lloyd's Current Account at the start of the month, and a monthly paycheque of £1,750. My paycheque would meet the minimum monthly spend of £1,500 but would take me £750 over the £5,000 interest limit. In order to bring this back down and satisfy the two separate direct debits, would it be possible to pay £1,000 into my Nationwide FlexDirect Current Account and £750 into my Halifax Reward Current Account, thereby also satisfying the minimum monthly funding of these two accounts as well.


This is my "master plan" however I am a bit of a financial noob and it almost sounds too good to be true. Any feedback or advice would be much appreciated.


Thanks


RoFed

Comments

  • Archi_Bald
    Archi_Bald Posts: 9,681
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    Sure you can, and quite a few people here do this sort of thing.

    You'll within no time exceed the amount Nationwide pay interest on, and leaving £750 a month sitting in Halifax earns you no interest there. So you really should add one or two other accounts into your plan. E.g TSB Plus, Santander 123, Tesco.

    Threads on all these account on the forum.
  • Vortigern
    Vortigern Posts: 3,242
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    RoFed wrote: »
    Any feedback or advice would be much appreciated.
    You can't transfer money between current accounts using Direct Debits. You would have to use Standing Orders for these transfers.

    You can use Direct Debits to pay your bills, to donate to charity, to fund certain investments, or to fund a limited number of savings accounts (e.g. Tesco)

    As you already have a Club Lloyds account, you could also use their Regular Saver.

    Look in the "Budgeting and Bank Accounts" board for more info.
  • slinga
    slinga Posts: 1,485
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    With the Lloyds Club Account and the TSB plus can you just transfer money around as was possible with the old Lloyds Vantage?
    It's your money. Except if it's the governments.
  • badger09
    badger09 Posts: 11,128
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    slinga wrote: »
    With the Lloyds Club Account and the TSB plus can you just transfer money around as was possible with the old Lloyds Vantage?

    Yes and yes :)
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