Is this the correct way to handle transferrals between bank accounts?

lonewolf123

Hi I want to open a Nationwide flex direct current account which pays 5% up to £2500 as long as you pay in £1000 a month into the account.

I don't have that type of income a month so I was aware of the solution of transferring money between two accounts to make up for that £1000. E.g. flex direct pays out £1000 a month into one account and that account pays back in £1000 into the flex direct making up for the £1000 a month.

However the question is how do I set up the standing order in terms of the date? I have heard that standing orders can take up to 3 working days so including weekends that can take up to 5 days.

So will the correct way for example is to set up a standing order for flex direct to pay into my account on the 1st of every month and then make my other bank account pay into flex direct account on the 5th as the funds of the standing order from the flex direct account may not have transferred straight away?

As you can see this may lose up to 10 days of interest a month for the full £2500 due to the in/out transferrals of the £1000 so is there another way of doing it?

gallygirl

lonewolf123 wrote: »

Hi I want to open a Nationwide flex direct current account which pays 5% up to £2500 as long as you pay in £1000 a month into the account.

I don't have that type of income a month so I was aware of the solution of transferring money between two accounts to make up for that £1000. E.g. flex direct pays out £1000 a month into one account and that account pays back in £1000 into the flex direct making up for the £1000 a month.

However the question is how do I set up the standing order in terms of the date? I have heard that standing orders can take up to 3 working days so including weekends that can take up to 5 days.

So will the correct way for example is to set up a standing order for flex direct to pay into my account on the 1st of every month and then make my other bank account pay into flex direct account on the 5th as the funds of the standing order from the flex direct account may not have transferred straight away?

As you can see this may lose up to 10 days of interest a month for the full £2500 due to the in/out transferrals of the £1000 so is there another way of doing it?

Most banks do instant electronic transfers so you could just do that manually every month. I will transfer out 1k, leave it overnight and transfer back in, but others just do on the same day and seem to have no problems. Whichever, much easier than a standing order which can get mucked about by weekends, bank hols etc.