YBS internet saver as a current account?

Northynorthy

I have this crazy idea to use a YBS internet saver as a sort of second current account. Paying money in and withdrawing it fairly often (maybe every week) with the cash card.

Can anyone see any reason why this is a bad idea?

G

Icesaver

Northynorthy wrote: »

I have this crazy idea to use a YBS internet saver as a sort of second current account. Paying money in and withdrawing it fairly often (maybe every week) with the cash card.

Can anyone see any reason why this is a bad idea?

G

Depends how much if any you actually leave in there earning interest. Is it worth the hassle?If you are withdrawing most / all of it each week then you'll not benefit much from the higher interest rate. It would be better to set yourself a limit below which you don't withdraw if you can.

apt

Not a bad idea to have the YBS as a back up for emergency cash now there are no longer current accounts with a long-term high rate like the Halifax High Interest Current Account used to offer. The drawbacks are that the account does not accept faster payments and you are limited to withdrawing £250 a day via card. Another alternative to get around the lower interest rates on current accounts is to open the First Direct account (£100 payment for new customers, £1,500 per month funding needed) and run it in deficit for most of the month, but always inside the free overdraft limit of £250.

Lansdowne

"limited to withdrawing £250 per day by card." Not exactly,

Withdrawals are only allowed either by:

• Logging onto our website to transfer to your nominated bank or building society account or a nominated account held with us, or
• Use of an optional LINK card and Personal Identification Number (PIN) at a cash machine.

You may nominate twelve external accounts for withdrawals to be transferred to, and you will also be able to choose up to three other Yorkshire accounts to receive transfers from your Internet Saver account.

That is, there are other ways to withdraw money than in cash.
But still the main disadvantage I can see is limited ways to make payments from the account: no cheque book, no debit card, only cash withdrawals or online bank transfers to a limited number of accounts. Depending on your requirements it might work for you.

dwsjarcmcd

Lansdowne wrote: »

"limited to withdrawing £250 per day by card." Not exactly

I think the poster meant that physical cash withdrawals from an ATM were limited to £250 per day.

oldfella

suggest you keep a current account for short term payments and savings accounts for longer term deposits. In my experience its the best way to optimise service and overall return.

Northynorthy

Thanks for the replies :beer:

A little more info, this account is to basically pay for my hobby all year and I have built up a lump sum that I have at the moment. So the idea was to pay it into this account and then take money out of it over the year - so at least to start with there will be a fair amount in it

I'm hoping I don't ever need £250 a day or I'm in real trouble! Maybe £100 every month

Sounds like it's a decent plan to me. It just seemed that I would get a little more interest than opening a 2nd current account and the money is still easy for me to get at.

Thanks,

G

7sefton

YBS's nearest offering to a current account is their 'cash transactor' account. Similar to a basic bank account, it accepts BACS, has an ATM card, counter service, standing orders and (I think) Direct Debit. Awful interest rates though.

Northynorthy

I am not that interested in all the current account stuff though, I guess I might have described it a bit wrong in the original post.

All I want is a reasonable interest rate and a cash card

G

dwsjarcmcd

7sefton wrote: »

YBS's nearest offering to a current account is their 'cash transactor' account. Similar to a basic bank account, it accepts BACS, has an ATM card, counter service, standing orders and (I think) Direct Debit. Awful interest rates though.

The cash transactor account is identical in its features to the Internet Saver, except you can use the cash transactor account in the branch and you pay a heafty price via lost interest.

As you are only taking out £100 per month, I think your plan stacks up.

Chadsman

You can pay in to a cash transactor account over the counter and then immediately transfer to the internet account by giving them your ATM card. Alternatively you can transfer cleared funds from a cash transactor to an internet saver over the internet.

...I think you can post a cheque to Head Office to pay into an internet saver...???