Can salaries be paid into 'savings' accounts?

anamenottaken

The_ICT_Engineer wrote: »

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.


Ny-Ålesund, Spitsbergen 78° 55′ 0″ N, 11° 56′ 0″ E

Of course you can move money in the opposite direction.

Naf

anamenottaken wrote: »

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

Sorry, I perhaps felt the need to over-clarify. When I worked on a bank counter it was amazing how many people didn't have a clue that the ISA allowance wasn't the maximum balance he account could have, but the maximum they could pay in, even if they withdrew a bit.

Hootie19 wrote: »

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

Probably for the exact reason that another poster has pointed out: that they're then paying a savings interest rate on the money in there.
What banks want is to have money sat in accounts that they can then lend elsewhere (or just bet on the horses). If its someone's salary then they can't count on it sitting in the account for any length of time.

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 ?

They could ask, you don't have to answer. And there's not much they could prove anyway, but they don't really need to prove it to close your account.

getmore4less

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.

If the account needed would need to take back/faster payments from 3 parties and allow access to the funds.

Which banks have policies that say no regular payments from 3rd parties on thiose types of accounts?

Naf

getmore4less wrote: »

If the account needed would need to take back/faster payments from 3 parties and allow access to the funds.

Which banks have policies that say no regular payments from 3rd parties on thiose types of accounts?

Santander's Instant Access Saver, for one.