Funding your current Account

datightarse

When a current account advertises that you must fund £1,000 a month to get the better rates. I understand that your wages payed in will act as funding this , but if you have 2 current accounts with the same Bank and have your wages of over a £1000 payed into one but then transfer via online banking over a £1000 to the other does that still count even though its been moved from another account.

Cheers
David

Ive confused even myself there LOL

Walletwatch

David

I am sure it is Ok, but not quite aware why an account holder would want to hold two such accounts with the same bank, nor do I see why a bank should agree opening two such accounts for the same acct holder. It becomes an administrative nightmare for you to manage these two accts, and ensure you do the transfers every month, and for the bank as well to have two such accts open for the same customer. Also, you run the risk of going into unauth overdraft on one of them if you write a chq on one of them and fund the other, etc.

Unless you intend one of them to be a joint acct with someone else???

datightarse

No I have two accounts and do it like this
WAGES CURRENT ACCOUNT
My wife and i have our wages paid in here

BILLS CURRENT ACCOUNT
I transfer enough money usually more to pay our monthly bills and have a little extra for any emergencys.

This way all the money left in the Wages account after the transfer is ours to spend on treating ourselves.

David

JayS_3

I have the same arrangement, one current account in my name and another with my husband (therefore: a joint account).

When I wasn't working, we set up a SO from my husband's own account for the £1000, into my account, then I set up a SO from my account into the joint account (but only for £500, as I kept the rest to spend on my!!!!). This worked for years, we are only changing out arrangements as we are about to move to an offset mortgage with another bank - but we will still have at least three separate accounts...

MarkyMarkD

All the offers I've seen requiring a certain level of funding will NOT count transfers from another account with the same institution. That would be silly! They want accounts which are being properly funded from outside.

JayS_3

MarkyMarkD wrote:

All the offers I've seen requiring a certain level of funding will NOT count transfers from another account with the same institution. That would be silly! They want accounts which are being properly funded from outside.

I HAVE been doing this for years with the Halifax, but thinking about it the £1000 has come from my husband's account which is not with the Halifax (so is from a different institution), then SO half to our Halifax joint account which is where he would have paid it to anyway.

buses7675

Hi All,

One question I have about account funding is why do the banks like A&L, Halifax, Abbey etc, pay more interest if you pay more cash in?

As its a current account, you probably spend a good deal of this money and then move it to a savings account that may/may not be at the same bank, and considering you can cheat and 'recycle' money, rather than having to actually earn £1000 per month for example, what advantage to the bank does this bring?

Cheers

Steve

Walletwatch

MarkyMarkD wrote:

All the offers I've seen requiring a certain level of funding will NOT count transfers from another account with the same institution. That would be silly! They want accounts which are being properly funded from outside.

Marky

Recently opened an account at Lloyds TSB, where they told me I could actually come one day, pay in cash at the tellers, and withdraw the same money in ten minutes to comply with the conditions. If this is the case, then I don't see why they will not count transfers from another account - unless you are saying so because of traceability of house transfers against cash deposits and withdrawals.

Walletwatch

buses7675 wrote:

Hi All,

One question I have about account funding is why do the banks like A&L, Halifax, Abbey etc, pay more interest if you pay more cash in?

As its a current account, you probably spend a good deal of this money and then move it to a savings account that may/may not be at the same bank, and considering you can cheat and 'recycle' money, rather than having to actually earn £1000 per month for example, what advantage to the bank does this bring?

Cheers

Steve

Steve

This is a move to lure the average person having his salary account at an HSBC or a Barclays, which pay a pathetic rate of 0.1%. For such a person, such a deal is a definite improvement over the rate he's already getting. The expectation is that he'll see no reason for moving the money to another savings acct, as he's now getting an interest rate 30-40 times what he used to.

Poppy9

I do this with the Halifax. They actually told me I could do it. I have a current account and on line savings accounts with them. I simply log on once a month and transfer £100 into my current account. Then less than a minute later I transfer it back to my savings account. Note with the Halifax if your balance averages over £500 for the month you get the higher rate interest anyway. So try to make your SO/DD come out as late as possible.

MarkyMarkD

My take is that the reason they pay higher rates to people with better incomes is that they are the customers they want ... they might be more likely to buy other things from them.

And I know there are ways to get around these things (if you are so desperate that you wish to do so) like withdrawing and depositing cash, but the general rule (and HFX may be an odd exception) is that the money is meant to come from outside the institution IMHO.