Can salaries be paid into 'savings' accounts?

Danny_G

Can salaries from employers (paid once every 2 weeks) be paid into the workers saving accounts?

(like a high street bank saving account)

or only into current accounts?

getmore4less

Any account that will accept incoming payments the way your employer wants to pay.

anamenottaken

Danny_G wrote: »

Can salaries from employers (paid once every 2 weeks) be paid into the workers saving accounts?

or only into current accounts?



and how about into Isa accounts?

Remember there is a maximum that can be paid into a cash ISA so you would have to be sure that salary after tax and NI deductions did not exceed the annual allowance.

Naf

But many banks' policies say that their savings accounts can't be used for this purpose.
The account will accept it, but it's technically a breach of Ts & Cs.

Naf

anamenottaken wrote: »

Remember there is a maximum that can be paid into a cash ISA so you would have to be sure that salary after tax and NI deductions did not exceed the annual allowance.

The ISA rules only account for deposits, & don't account for withdrawals. This means that when the ISA limit has been paid in, even if it has been withdrawn and the account's total balance never actually reached this amount, the account will cease accepting payments in.

anamenottaken

Naf wrote: »

The ISA rules only account for deposits, & don't account for withdrawals. This means that when the ISA limit has been paid in, even if it has been withdrawn and the account's total balance never actually reached this amount, the account will cease accepting payments in.

Exactly, yes - that's why I wrote that it's important to ensure the salary payments in would not exceed the annual ISA allowance.

I suppose I could have said salary (after tax and NI deductions) plus any other payments in must not exceed the allowance.

Danny_G

Naf wrote: »

But many banks' policies say that their savings accounts can't be used for this purpose.
The account will accept it, but it's technically a breach of Ts & Cs.

can the bank question you?

if you do this for years (take in salary into a savings account?)

or only if the amount of income that comes in is Loads ?

LadyMissA

Danny_G wrote: »

can the bank question you?

if you do this for years (take in salary into a savings account?)

or only if the amount of income that comes in is Loads ?

Up till 7 years ago I had my salary paid into a savings account but I never saved in it, I just spent my £ like any other bank account using the ATM machine to draw out £. I then changed to a basic account 7 years ago as I couldn't pay bills via the savings account.

DCFC79

Why not use a normal account ?

Hootie19

Naf wrote: »

But many banks' policies say that their savings accounts can't be used for this purpose.

Is there a particular reason for this? (Genuine question - I didn't know this.)

The_ICT_Engineer

DCFC79 wrote: »

Why not use a normal account ?

0.01 % interest, I rather the funds were in a higher interest account 3.55% (Every little helps) and transfer required funds once week in to the day to day current account.


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