Question about £1000 per month rule

kevtrader

Hi

I'm thinking of opening a current a/c with A/L (5.5% interest) but I don't earn £1000 per month. Does transferring £1000 to the account per month fufill the minimum amount or do I have to look for another account?

Thanks

Kev

dawny10

I used to have an Abbey current account that gave you a preferential interest rate if you paid in over £1000 a month. At the time I was earning under this but noticed that one month, as I had paid some extra cash in, they gave me the preferential rate for that month.

After that, I took out money from account via the cash machine, walked into the branch and paid it back in - all they seem to want is that £1000 a month is paid in, irrespective of how much was withdrawn.

So abbey are happy with that, and I assume so will A&L, Lloyds etc. I think they just look for £1000 to be credited to your account per calendar month - they don't know that the £500 you withdrew resulted in the extra few hundred quid appearing in your account.

hkw1

I have the A&L Premier Plus account and end up with £998 per month going in and get the extra made up from other accounts and income. I don't think it has to be made up entirely from your salary. I think the only way it doesn't count is if you transfer it from another A&L account... say from a savings account... anyone know any different?

jonesMUFCforever

As far as I am aware this practise will work ie put money in go and draw it out again and then pay it in again.
Eric

jo_b_2

Yes so long as the minimum amount is credited every month you will fulfil the criteria. This excludes transfers from any other A+L accounts.

Hope that helps.

Milarky

Yes so long as the minimum amount is credited every month you will fulfil the criteria. This excludes transfers from any other A+L accounts.

Someone else said 'calendar month'. I don't think that is correct. I believe it is based on the statement period - which may not run from month end to month end. I base this on my A&L 'premier' a/c which needs £500 per month and which I fund indirectly by the means desscrbed above [which defintitely works]

realaledrinker

I have a smile current account which pays 3.3% and no minimum pay in requirement. Their customer service is superb, the website easy to use and I have read several comments on both here & The Fool that the A&L account leaves a lot to be desired service-wise.

The net interest difference between the two on a £500 average balance, in a year is about £8! I know where I'd rather keep my money thanks all the same!

The banks entice people with headline rates on current accounts that are worth jack !!!!!! when you come to work it out. Quality of service is much more important on a current account.

dawny10

Someone else said 'calendar month'. I don't think that is correct. I believe it is based on the statement period - which may not run from month end to month end. I base this on my A&L 'premier' a/c which needs £500 per month and which I fund indirectly by the means desscrbed above [which defintitely works]

Surely if they based it on statement period there would be the chance that people genuinely paying in their wages of £1K+ could fall foul of the rule?
My workplace pays us on the last Wednesday of the month so can vary between the 24th and 31st of the month. A statement period running from 25th to 25th could therefore miss a monthly wage.

MylesBetter

This process also works for the HALIFAX Current a/c.

It seems to work by transferring money from the current a/c to a HALIFAX savings a/c on-line and then the next day transferring it back again.

I agree it must be electronically calculated that a a/c has had so much banked into it (£1000) from whatever source and then calculates the rate accordingly.

Certainly worth just moving your money about once a month to get the higher rate of interest.

blinko

the idea is that 1000 has to go through the account a month dont ask me the ins and outs, but you can put the money in and take it out again and it will count as going through your account ! and you would meet your required 1000 amonth

Darryl

If you can’t meet the £1,000 a month rule for the Alliance & Leicester Premier Current Account try their Premier Current Account. This only requires £500 per month, and has many of the benefits of the Premier Plus account.


Darryl.