Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • elephantrosie
    • By elephantrosie 6th Jul 17, 6:10 PM
    • 341Posts
    • 85Thanks
    elephantrosie
    transferring money among current accounts
    • #1
    • 6th Jul 17, 6:10 PM
    transferring money among current accounts 6th Jul 17 at 6:10 PM
    i only set up standing order to transfer money among my current accounts effective from this month.

    as 1st and 2nd of july fell on weekend, the standing order started on the 3rd july. my initial plan was for the 1k quids to sit in each account for a day, before it gets ship to the next. but because standing order only started on the 3rd, on three accounts, the 1k quids only sat in respective account for less than a day.

    would that disqualify me from receiving my interest for this month?
    Getting bored of my 9 to 5 job.
Page 1
    • luke623
    • By luke623 6th Jul 17, 6:23 PM
    • 45 Posts
    • 30 Thanks
    luke623
    • #2
    • 6th Jul 17, 6:23 PM
    • #2
    • 6th Jul 17, 6:23 PM
    You have to check with the individual bank. Some differ on what counts as a calendar month but i reckon your plan will still work
    • eskbanker
    • By eskbanker 6th Jul 17, 6:36 PM
    • 5,282 Posts
    • 5,038 Thanks
    eskbanker
    • #3
    • 6th Jul 17, 6:36 PM
    • #3
    • 6th Jul 17, 6:36 PM
    The accounts that require monthly funding to qualify for interest only specify that the money has to be paid in, not that it has to sit in there for any specific length of time (unless you know of any Ts & Cs to the contrary), which is hardly surprising when you think about it - they're current accounts intended for frequent deposits and withdrawals.

    Assuming the balance is sufficient (and why wouldn't it be if you're using these for saving?), there's nothing to stop you from paying the money out before it's paid in!
    • Eco Miser
    • By Eco Miser 6th Jul 17, 9:09 PM
    • 2,940 Posts
    • 2,724 Thanks
    Eco Miser
    • #4
    • 6th Jul 17, 9:09 PM
    • #4
    • 6th Jul 17, 9:09 PM
    I do my transfers by Faster Payment, and the excess cash only sits in each account for long enough for me to log out of one account, and into the next, make a note of the interest, and initiate another FP. The first/last account in the chain actually has less in it during this process than normal. All the banks pay the expected interest.

    Since you're using Standing Orders, you may need to be aware that Tesco Bank processes SOs on weekends, and some banks eg Santander have a different definition of month, not connected to the named months.
    Eco Miser
    Saving money for well over half a century
    • Geoff1963
    • By Geoff1963 6th Jul 17, 10:14 PM
    • 956 Posts
    • 598 Thanks
    Geoff1963
    • #5
    • 6th Jul 17, 10:14 PM
    • #5
    • 6th Jul 17, 10:14 PM
    I think the danger isn't that it won't be in long enough to earn interest, but that it tries to be paid out before it goes in - triggering an "unpaid item" charge. One of those, loses a lot of interest.

    On a slightly different subject, why move 1000 around ? Why not move 500 around "clockwise" at the start of the month, then 500 "anticlockwise" a few days later ? To make it less obvious that the same money is going around, you might need 5 accounts so :
    A -> B -> C -> D -> E -> B -> D -> A -> C -> E -> A
    Each account : receives money from 2 different accounts, and pays into 2 other different accounts.

    I'm guessing you move the 1000 around, because it is salary, that eventually you spend. You could have 500 of it straight away.
    • EachPenny
    • By EachPenny 6th Jul 17, 10:44 PM
    • 1,663 Posts
    • 1,999 Thanks
    EachPenny
    • #6
    • 6th Jul 17, 10:44 PM
    • #6
    • 6th Jul 17, 10:44 PM
    On a slightly different subject, why move 1000 around ? Why not move 500 around "clockwise" at the start of the month, then 500 "anticlockwise" a few days later ? To make it less obvious that the same money is going around, you might need 5 accounts so :
    A -> B -> C -> D -> E -> B -> D -> A -> C -> E -> A
    Each account : receives money from 2 different accounts, and pays into 2 other different accounts.
    Originally posted by Geoff1963
    This seems a very complicated way to do something very simple. If each account has a balance of at least £1000 then simply move the £1000 around them once.

    I'm not aware of any bank which has objected to the minimum monthly pay in coming as a single payment each month from the same account. Why complicate things if there is not a problem?
    "In the future, everyone will be rich for 15 minutes"
    • jimjames
    • By jimjames 6th Jul 17, 11:33 PM
    • 11,931 Posts
    • 10,330 Thanks
    jimjames
    • #7
    • 6th Jul 17, 11:33 PM
    • #7
    • 6th Jul 17, 11:33 PM
    I think the danger isn't that it won't be in long enough to earn interest, but that it tries to be paid out before it goes in - triggering an "unpaid item" charge. One of those, loses a lot of interest.
    Originally posted by Geoff1963
    Why would it not be there long enough for interest? Surely the aim is to leave the maximum balance to get the most interest?
    Remember the saying: if it looks too good to be true it almost certainly is.
    • SeduLOUs
    • By SeduLOUs 6th Jul 17, 11:38 PM
    • 2,010 Posts
    • 2,367 Thanks
    SeduLOUs
    • #8
    • 6th Jul 17, 11:38 PM
    • #8
    • 6th Jul 17, 11:38 PM
    Why would it not be there long enough for interest? Surely the aim is to leave the maximum balance to get the most interest?
    Originally posted by jimjames
    They are talking about minimum monthly pay in requirements (you don't get any interest if you don't pay in regularly). I have a Nationwide account that has £2,500 in (the maximum for interest) and have standing orders for £1,000 in and out of the account on the 1st of every month to meet the pay in requirement - never been a problem so far and there's more than enough in each of my accounts to not cause any issues if one cleared on a weekend when the other didn't.
    • jimjames
    • By jimjames 6th Jul 17, 11:42 PM
    • 11,931 Posts
    • 10,330 Thanks
    jimjames
    • #9
    • 6th Jul 17, 11:42 PM
    • #9
    • 6th Jul 17, 11:42 PM
    They are talking about minimum monthly pay in requirements.
    Originally posted by SeduLOUs
    Exactly. But as per your example I'm not sure why there is an issue. Your balance is £1000, why would it matter if the SO goes out before or after other than having excess balance in for a day. You certainly wouldnt get charges
    Remember the saying: if it looks too good to be true it almost certainly is.
    • EachPenny
    • By EachPenny 7th Jul 17, 12:34 AM
    • 1,663 Posts
    • 1,999 Thanks
    EachPenny
    Exactly. But as per your example I'm not sure why there is an issue. Your balance is £1000, why would it matter if the SO goes out before or after other than having excess balance in for a day. You certainly wouldnt get charges
    Originally posted by jimjames
    The OP was (unnecessarily) worried that the monthly pay-in hadn't sat in the account long enough to be registered as a pay-in and therefore qualify the account for interest. Eskbanker explained this wasn't a problem, but the waters subsequently got a bit muddied.

    You might get charges if the amount the SO is for exceeds the balance in the account - but this would happen only if you aren't careful.

    All that matters is:
    1) The minimum pay-in goes into the account at some point, it can come back out again immediately, (or even before it has gone in.)
    2) Make sure the balance in each account is more than the amount of the standing orders.
    3) Be aware that some banks (e.g. Tesco) process SO payments on days other banks don't (as per Eco Miser's post).

    ...and keep it as simple as possible
    "In the future, everyone will be rich for 15 minutes"
    • Brewer20
    • By Brewer20 7th Jul 17, 12:57 AM
    • 23 Posts
    • 8 Thanks
    Brewer20
    I think the OP should state which accounts they have, some need to be funded each month from an outside source...ie Nationwide accounts can't be funded each month (if you want the interest) by transferring (paying in) between your Nationwide accounts, if you have more than one for sinstance. Tesco do allow transfers (pay ins) between accounts Tesco accounts.

    It doesn't really matter how long the money is in the account, can be a few minutes, so long as the pay in amount is made each month.
    My money sits in 5 accounts, I use a 6th to move the money into then back out of straight away. Luckily my Tesco doesn't require a pay in per month, and 2 are TSB I can transfer between them. I use FD account to transfer to, they give you nowt on the current account, only a regular saver to use.
    • Sea Shell
    • By Sea Shell 7th Jul 17, 6:42 AM
    • 373 Posts
    • 331 Thanks
    Sea Shell
    I used to use the "round robin" method, but that got too messy when a new account was added or an account closed, so now I just use the in/out method to each account from central hub (Sant), meeting each accounts own requirements.

    As the accounts are at their interest limits, it wouldn't matter if one pays out slightly before the credit arrives.
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow "
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,505Posts Today

4,613Users online

Martin's Twitter