Moving money between accounts

shazbot79

Hi,
I'm a new member...so please be gentle with me! :A

I am considering moving around £1000 just after I get paid from my current account (Halifax - set £5 reward instead of interest) to a savings account (Halifax 2.3%) until I need it. I think that could be around 7-10 days at which point I'll have spent the rest of my wages and I'll move it back. I figure this means I will earn a wee bit of interest each month on top of the £5 which I get just for paying my wages in.

However, I have no idea how to calculate how much interest this could earn me. Can anyone with a bit more money nouse help?

Thanks

zolablue25

I think the answer would be - not much! Is the transfer instant and interest payable straight away?

If you put 1000 in the savings account and kept it there all year your interest would be £23 for the year. Now you are saying that your 1000 would be in for approximately 25% of a year (7-10 days every month) so you should expect approximately 25% of the £23, so about £6! Thats £6 a year less tax at 20% of course.
These are pretty rough figures but it will give you a guide to the amount of interest you should expect.

shazbot79

Thanks for that! Not going to earn much really.... I may do it anyway - £6 in my pocket for not much work is still better than £6 in theirs - I may just need to transfer more or find a way to keep it there longer/find a better set of accounts.

Cheers