How to pay Derbyshire BS regular saver

Dagobert

Did you know that the Derbyshire pays interest from the day a cheque is received?

If the cheque is drawn on an interest bearing current account, there will be a few days' overlap during which you'll be getting double interrest!

At The Derbyshire when a cheque is received it takes 8 days to clear but we will start paying you interest on that money from day 1, which means you will have earned interest at your bank on that money until we take it out. This will normally take approx 8 days.

Not many banks or building societies pay money on cheques from day one.

Speculator

I think the Coventry still does.

derrick

And Market Harborough

deemy2004

yes this is one of those rare regular savers than does allow over the counter deposits as against standing orders only

mary

Would I be better off transferring 2 x £1,000 p.m. directly from my Cahoot Savings account into the double Derbyshire regular savers therefore, as I originally I had set up a STO with Lloyds and was channelling it from Cahoot - Lloyds - Derbyshire and obviously loosing some days interest en route?

Kazza242

mary wrote:

Would I be better off transferring 2 x £1,000 p.m. directly from my Cahoot Savings account into the double Derbyshire regular savers therefore, as I originally I had set up a STO with Lloyds and was channelling it from Cahoot - Lloyds - Derbyshire and obviously loosing some days interest en route?

Yes, it would definitely be better to fund your Derbyshire RS payments directly from your Cahoot account. This is what I've been doing for the last year. It is much quicker making a direct transfer, you'll earn higher interest for longer.

Taking the method you are currently using:

Monday: Cahoot transfer----> Thursday: Arrives at Lloyds // Suspend payment until after the weekend// Monday:Send funds from Lloyds

---

> Wednesday:Arrives at Derbyshire.

Cahoot Direct Method:

Monday: Cahoot transfer---> Thursday: Arrives at Derbyshire.

mary

Presumably the Derbyshire don't care how the money gets there, provided it gets there always on the correct day. I assume they won't mind if I cancel the STO with Lloyds and just do a manual "future payment " from Cahoot. I guess there's no reason to stop you setting up 12 months of future dated payments from Cahoot (I'll have to check on their website)

deemy2004

Correct day ?

It can get there on any day of the month. Offcourse you want it to get there at the start of the month to maximise interest.

Dagobert

Kazza242 wrote:

Yes, it would definitely be better to fund your Derbyshire RS payments directly from your Cahoot account. It is much quicker making a direct transfer, you'll earn higher interest for longer.

The whole point of my original post was that you get the greatest gain when paying by cheque because you earn double interest for a few days because the Derbyshire pays interest from the day of receipt and the money doesn't come off your current account until a few days later.

Kazza242 wrote:

Monday: Cahoot transfer---> Thursday: Arrives at Derbyshire.

Wednesday: post cheque ---> Thursday: Arrives at Derbyshire and starts gaining interest while still earning interest in c/a ---> Monday: c/a debited

If you post the cheque just before the weekend the double interest period will last a couple of days longer.

As far as Cahoot c/a holders are concerned though, they might not have a cheque book in order to earn higher in-credit interest.

And obviously, a two-stage transfer always loses more days and therefore more interest in any scenario.

mary

I believe I understand what you're saying, however I have the Cahoot Savings 5.3% savings account and therefore no cheque book, to be able to post a cheque. By "posting a cheque", I guess you don't really mean mean posting a cheque the old fashioned "royal mail" style, as that's obviously variable, but "depositing" over the counter, which therefore takes away some of the ease and convenience of "online banking" But presumably in my case, it is still preferable to do a straight one-off payment each month to the Derbyshire from the Cahoot savings. Or have I got it wrong?

Milarky

If you open a cahoot current account too you will get £250 free overdraft [falling to £100 after November 8th] and £10 if done using GreasyPalm. But if you also have an Egg savings account you still lose the two days interest on the transfer but can squeeze back a day's interest on the 'credit' balance each time you transfer:

Cahoot Direct Method:

Monday: Cahoot transfer---> Thursday: Arrives at Derbyshire

Instead, do this:

Indirect transfer: Egg 'Manoeuvre'

Monday: Cahoot[savings]--->Cahoot[c/a]:transfer [Leaves. Tuesday] --->
Monday: Egg Savings [Debit card, immediate], then ready to make 2 WD transfer:
Monday: Egg[BACS] --->Wednesday: Arrives at Dearbyshire.

On £2000 [£250 o/d used] it works out you will get 3.5% interest from cahoot c/a for Monday only, then get no interest for Tuesday at all, so it works out that you'd lose about 1.4 days interest [instead of the usual 2-3 days] this way.

The good thing, of course, is that this will work with any organisation that doesn't credit cheques immediately.