Question about nominated account

-null-

After seeing the watchdog piece on savings and receiving a letter telling me my bonus was ending I have decided to switch to a new savings account.

At the moment I'm looking at either the Sainsbury's e-Saver or Coventry BS Online Saver accounts (trying to determine whether I'll need to withdraw more than 4 times in the year).

I have a question about the nominated account though. Can you only nominate one account to where you can withdraw money to. Or is there any issues transfering money into a current account only to transfer it elsewhere straight away.

Vortigern

I don't know how many nominated accounts you can have with either Sainsbury or Coventry but there should be no issues with transferring to a current account then transferring away from there immediately. That's what I do.

Consumerist

-null- wrote: »

I have a question about the nominated account though. Can you only nominate one account to where you can withdraw money to. Or is there any issues transfering money into a current account only to transfer it elsewhere straight away.

You can nominate only one account but you can change that nomination later if you need to.

There is no issue with transferring cleared funds from a current account straight away. The only possible issue is that if the savings bank transfers funds by cheque, you may have to wait until the cheque has cleared before you can withdraw it from your current account.

Vortigern

Consumerist wrote: »

The only possible issue is that if the savings bank transfers funds by cheque, you may have to wait until the cheque has cleared before you can withdraw it from your current account.

I think they all do faster payments now (or faster payments plus one working day). I wouldn't transfer the cash away from the current account until I can see it in there. Check the cleared balance on your current account before transferring to be certain.

GeorgeHowell

Using online banking it should not be a problem, subject to the caveats above. It does seem to have got a lot better since the advent of faster payment. There is also the question of daily online payment limits though, which are typically £10,000.

However walking into bank branch with a large cheque to pay into a current account does run the risk of a undergoing a money-laundering backside-covering interrogation and/or pressure to "talk to one of our advisors"

-null-

GeorgeHowell wrote: »

However walking into bank branch with a large cheque to pay into a current account does run the risk of a undergoing a money-laundering backside-covering interrogation and/or pressure to "talk to one of our advisors"

That's mainly why I was asking. In case they see transferring funds into an account then straight back out again as suspicous.

Thanks for the answers all.