My Observation on LTSB Faster Payment, A Loophole ?

adindas

Hi All
I just noticed that that when I do outward transfer from LTSB vantage account on weekend, or bank holiday to other account say Halifax Reward. It is dated on the next working days on LTSB side.
But in the meanwhile the bank which receive the FP (the receiving end) will date it on the same date the FP is conducted.

For instance:
Yesterday (May 29) and Today (May 30) and , I did a FP from my vantage A/C to my Halifax Reward A/C. What I notice is that

On My Vantage A/C:
Both transaction are dated on May 31, e.g. the next working day.

On My Halifax Reward A/C
The transaction were dated on May 29and May 30 respectively.

If my understanding and observation is correct, this is a loophole that we could take for our advantage as both A/C will earn an interest in the same amount of money.

I am aware that the interest is very small as it is just 2 days interest but it could be intensified by weekly transfer + increase the amount of money + increase the number of A/C involved.

Does anyone have tried this or have a look if my understanding is correct ?

Thank you
ADINDAS

YorkshireBoy

adindas wrote: »

both A/C will earn an interest in the same amount of money.

It falls down on one, not insignificant, point...the Halifax Reward account doesn't pay interest.

I am aware that the interest is very small

It's incredibly small! See above^^

Does anyone have tried this

It's currently being trialled by some members on the stoozing website.

adindas

Thank you for the link.
It could still be moved instantly to Halifax Web Saver Reward which earn (2.8+0.2%) on the same day.

But I agree it is not too significant amount of money considering the hassle ...

YorkshireBoy wrote: »

It falls down on one, not insignificant, point...the Halifax Reward account doesn't pay interest. ;)It's incredibly small! See above^^It's currently being trialled by some members on the stoozing website.

jambosans

As far as I'm aware, the reference field on a LTSB Faster Payment indicates the "real" date and time of the transaction. For example: ">TRANSFER NAME<>REFERENCE NUMBER<23JUL10 14:58".

I don't know which date LTSB use to calculate the interest.

pinkdalek

Any transactions done to a Halifax/BOS/Lloyds TSB account over the weekend do not earn any interest anyway.

Cash paid in to a Halifax account on a Saturday does not earn any interest until the Monday.

Pointless exercise to be honest.

opinions4u

pinkdalek wrote: »

Any transactions done to a Halifax/BOS/Lloyds TSB account over the weekend do not earn any interest anyway.

Cash paid in to a Halifax account on a Saturday does not earn any interest until the Monday.

Pointless exercise to be honest.

I didn't think that was the case until 23rd July.

Milarky

I've been doing this between RBS-Tesco-Natwest and Lloyds for a while now. Yes it works, because the banks have different 'legacy' end-of-day cut off times from one another - when they go into the following working day.

Here's what I've found to be the case

RBS Group & Barclays : 6.30pm
A&L/Santander & Nationwide: 8.30pm
Lloyds: 10pm
Halifax (probably HSBC also): Midnight

Faster Payments are '24/7' of course.

I would not rely on the Lloyds-to-Halifax one though, because they are supposed to be merging their systems (as already mentioned) so a payment between the two will have reconciled dates - and therefore no interest is possible from such transfers.

adindas

If we could use different 'legacy" end-of-day it will mean we could do it everyday to gain one day interest rate. It is much better for sure

But I am not sure here whether the gain from interest is significant or is there anyway to do it automatically without the need to log in every day ....?

Milarky wrote: »

I've been doing this between RBS-Tesco-Natwest and Lloyds for a while now. Yes it works, because the banks have different 'legacy' end-of-day cut off times from one another - when they go into the following working day.

Here's what I've found to be the case

RBS Group & Barclays : 6.30pm
A&L/Santander & Nationwide: 8.30pm
Lloyds: 10pm
Halifax (probably HSBC also): Midnight

Faster Payments are '24/7' of course.

I would not rely on the Lloyds-to-Halifax one though, because they are supposed to be merging their systems (as already mentioned) so a payment between the two will have reconciled dates - and therefore no interest is possible from such transfers.