Current Account with an automatic 'sweep' system

innovate

what interest rate are you getting? how much in actual ££ will that make you over a year?

how does what you can make in ££ over a year compare with having a current account that pays interest (and may be cashback)?

Gromitt

innovate wrote: »

what interest rate are you getting? how much in actual ££ will that make you over a year?

I'm going to guess between 0.5% and 1%

Some people don't care about the interest rate, they just want the money in a different account.

I know people who move money out of their Santander 123 account (earning 3%) into an account earning 1.25% simply because they don't like all their money in a current account and think it's more safe elsewhere.

Herbalus

It makes sense. If you have money from different places e.g. a wedding gift, an inheritance sum, student loans (yep, that's me) that you want to keep separate, I guess some people would feel uncomfortable about having this money in the same place as their salary and outgoings. You'd lose sense of what money was specified for what purpose.

I get around this by using a credit card as my main "account" and don't touch the 123 - apart from the DDs to the credit cards of course!

plunt

I was actually looking at this yesterday, and to my suprise see it as a forum topic today.

I know Clydesdale Bank offer it on their paid for account which comes with all sorts of extras. Sweeps back and forth into a saving account paying 1-1.5%

To explain to anyone who doesnt know what sweeping is, here is their FaQ explanation

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What is ‘sweeping’?

Sweeping helps you earn interest on funds that you don’t need on a day-to-day basis. It does this by automatically managing the balances on your Signature Current Account and Signature Savings Account.

You simply set a minimum and maximum balance on your Signature Current Account. When either of these limits is reached, we automatically sweep the funds to or from your Signature Savings Account.

If your Signature Current Account balance is higher than your maximum limit, the excess funds are swept to your Signature Savings Account.
This means you earn interest on these additional funds.

If your Signature Current Account balance falls below your minimum limit, funds will be swept from your Signature Savings Account into your Signature Current Account.

This will return your Signature Current Account balance back to the minimum limit you have set. If you don’t have enough funds in your Signature Savings Account to return your Signature Current Account back to the minimum limit, any funds in your Signature Savings Account will still be swept across.

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Regards

P

scottdaws0n

RBS have now withdrawn their ' daily sweep' facility for all customers, unless you are a 'Private Banking' customer. Their loss. I will merely recommend other banks that do offer a daily sweep account facility, so here goes. I can advise that Yorkshire Bank & Clydesdale Bank offer this service. Happy Sweeping!

Hominu

plunt wrote: »

What is ‘sweeping’?

Sweeping helps you earn interest on funds that you don’t need on a day-to-day basis. It does this by automatically managing the balances on your Signature Current Account and Signature Savings Account.

Wouldn't it be easier to just give you interest on your current account? Then you could just leave a months worth of cash in there and no need for any sweeping

Besides, their "Signature Savings Account" (only available with a Signature Current Account) only gives you 0.75% even with a balance of £100,000.