Banks accounts for consultants......?

Mr_Eg

It seems that I am in the position of wanting the world!

I am a consultant and so paid irregular amounts on a regular basis; the company I contract through ** Company link removed - This is not needed to understand the thread. Edited by Abuse Controller ** has a very tax efficient method of paying me:
- Monthly, a salary that equates to around £30k pa
- Six-weekly, an interest-free loan

In essence I receive about 78% of my day-rate (the balance of that comes through the interest free loan).

My quandry is not with this method (I'm really happy with it!), but looking at how I mange my accounts.....I'd like to be able to have all my (irregular) payments paid to a nice high interest savings account &, on a monthly basis to automatically transfer my 'living money' into a current account leaving the residual savings in a savings account.....essentially pay myself a salary from my savings account.

My aim the funds to arrive to a savings account; this is because the amount I wish to save is going to be variable & I can't be a:mad:sed to work that out monthly......I want to get my 'living money' in one account (funded from my savings) & my residual savings in another without having to intervene.

I have found that most banks will not allow me to set up a standing order from a savings to a current account; they are happy to offer two current accounts (though this does not give me the best interest on the 'saving' money).

.......what have I missed? Is it me? Am I asking too much!?!? H-e-l-p!

ukric

Sounds like the service you want is called account sweeping, abbey do this:

http://www.abbey.com/cash/current_accounts/abbey_account/abbey_account_index_additional.html

for an example....

Most banks can offer it the only thing is the restriction on the type of savings account you can have linked.

There is usually a fee for the service afaia

Mr_Eg

At last ! A bit of common sense from a bank!

Is this the only bank though.........I only ask as Abbey made me redundant, hence the consultancy work :rolleyes:

Any more suggestions are welcome

Thanks!

louise1234_2

I think most decent savings accounts do not allow standing orders to be set. up.

Would you be able to transfer the money yourself each month??

If so there are lots of internet savings a/c that give good rates, and transfers can be done easily online.

I'm not sure if what you're looking for exists...

BenL

Other banks do the sweep as well.

First Direct offer it I believe.

It should be a pretty standrard feature now of most current accounts.

The Abbey sweep works well, I should know I planned the user acceptance testing for it a few years ago.

Ben

ukric

As i say most banks will offer it but it's whether and what the fees are for doing so..... if you do ask try not to ask a muppet teenager but look for someone who might know what they're on about lol

davidcampbell

abbey sweep has no charge

a sweep though wouldnt achieve what mr eg wants. (unless ive misunderstood)

sweep facility takes any spare cash you have in your current account and sweeps it to your savings. this wouldnt get round the problem of taking the money from savings to current on an automatic basis

sweep would work for your money coming in. you can request that when x is credited to your current account, x-y is swept to savings but transferring back from savings will have to be requested as and when ....

DC

ukric

As far as I'm aware, a sweep makes all the funds available in your savings account available in your current account but without the money actually being there.

For example you could elect to have say £200 actually IN your current account. Should this go down or up during the working day it should be balanced again (swept) either way