Confused about pay in requirements for Bank Account

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JiyuuA7X
JiyuuA7X Posts: 4 Newbie
in Budgeting & bank accounts
Hello,

I'm looking at opening a Tesco Current account for the 3% interest. I'm a little confused about the pay in £750 per month requirement. Does the account need to be at least £750 positive each month? e.g. if my income was £750 per month and then I spent £1 I would not get the interest? Does the £750 need to come into my account from someone else, or could I theoretically transfer in £750 from my other current account each month and then right back out? or would this not count? Hope this is understandable :o
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  • eDicky
    eDicky Posts: 6,574 Forumite
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    As long as it enters the account each month, you qualify for the interest. Where it comes from and how long it stays in your account is not relevant.
    Evolution, not revolution
  • JiyuuA7X
    JiyuuA7X Posts: 4 Newbie
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    Okay. Thank you for your help :) I guess I was overthinking it!
  • robatwork
    robatwork Posts: 7,090 Forumite
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    Most people (I guess) on here play money merry-go-round.

    You setup a standing order for £750/£1000 from one account where you get your salary on Day 1, to account 2. Then on Day 3, standing order to account 3. Then on Day 5 to account 4.

    So on until it ends up where you want it - back at account 1 or in my case sitting in TSB earning 3% then coming back on day 29.

    At the moment the banks don't seem to mind this game. Maybe one day in future they will insist the money comes from a business account or some other way of preventing the above.
  • Neil_Jones
    Neil_Jones Posts: 8,913 Forumite
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    The day banks insist money into your personal accounts comes from a business account will be commercial suicide for personal banking. I dare say benefit payments from DWP or HMRC are not classed as "business" accounts in the same way as Joe Bloggs Ltd is.

    As long as you are paying in what the T&C's say - £500/1000/1750 a month, whether it comes from wages, savings, Uncle Fred or the DWP - that's all that matters. It doesn't have to stay there.
  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
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    Although remember you won't get much interest if you don't have a balance of any note in the account.

    If your average balance is, say, just £300 expect to see 75p a month interest.
  • Katiehound
    Katiehound Posts: 7,556 Forumite
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    Also just to point out it doesn't need to be just one payment- as long as it reaches the required sum over the month that will count.
    You can always take out say £250 and then pay it back in to increase a £500 payment to £750.

    If you want to earn interest then perhaps think about leaving £1000 there (or whatever the max on which it is paying interest) and move out the £750 as soon as it has touched base to another a/c to spend
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  • datlex
    datlex Posts: 2,239 Forumite
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    I have £200 circulating around 4 accounts weekly and it meets the payment requirements on all of them.
    Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.
  • surreysaver
    surreysaver Posts: 4,105 Forumite
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    datlex wrote: »
    I have £200 circulating around 4 accounts weekly and it meets the payment requirements on all of them.

    I suppose one issue with that is if your day of the week is a bank holiday, and the next available working day falls in the following month you might miss the paying in requirements on all or some of your accounts.
    I consider myself to be a male feminist. Is that allowed?
  • wiseonesomeofthetime
    wiseonesomeofthetime Posts: 2,080 Forumite
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    edited 22 July 2017 at 6:35PM
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    surreysaver wrote: »
    I suppose one issue with that is if your day of the week is a bank holiday, and the next available working day falls in the following month you might miss the paying in requirements on all or some of your accounts.

    That's why I use Tuesday, Wednesday, Thursday only as only Xmas/new year will risk a bank holiday hit then.

    If date is close to end of month then it likely to be a 'fifth' payment and therefore not affect pay in.
  • System
    System Posts: 178,093 Community Admin
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    Just be aware, if your money is just going in then straight out, you'll not see much benefit in terms of interest.

    Halifax, Co-op or even TSB offer payments based on depositing or spending funds
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