Tsb plus account 5%

zerog

sta0612 wrote: »

Could anyone hazard a guess as to why I was asked to bring proof of ID/address into branch when it would seem most others on this forum managed to open the account online?

I am currently out of the country for a few months so this is a real pain.

Could being out of the country in itself be the problem? (Different IP address? Clutching at straws!)

Unlikely, probably some discrepancies on your credit reports

Are you British, if not sometimes they want to see ID as well

stupendous_J

sta0612 wrote: »

Could anyone hazard a guess as to why I was asked to bring proof of ID/address into branch when it would seem most others on this forum managed to open the account online?

I am currently out of the country for a few months so this is a real pain.

Could being out of the country in itself be the problem? (Different IP address? Clutching at straws!)

They tend to require proof of ID if you're registered address is out of the UK (not sure you can apply for a TSB account if you're not a UK resident?). If you have registered the accounts to a UK address, then are you on the electoral roll for this address (probably why they need you to show proof of ID / address).

stupendous_J

KTF wrote: »

No need to transfer in and out. Just have the 2x TSB accounts send each other £500 each month to fulfil the funding requitement.

Then you just need to skim off the interest.

stupendous_J wrote: »

On the subject of running two accounts, do you have to deposit £500 in each from another bank or can you deposit £500 into the 1st account, then transfer it straight across to the second?

badger09 wrote: »

There is nothing in the T&C which says the £500 has to come from an external account. This is also the case with TSB Classic Enhance accounts (recently withdrawn for new customers)

Had this discussion with Badger09 in an earlier post. I was under the impression that you would have to initially transfer £500 from another organisation (Santander) and then trasfer it across to the other account back to my main Santander account?

Reading the TSB T&C I can't see why you CAN'T do it as you suggested KTF? so:-

2K in each TSB account, then Transfer an additional £500 into one of the accounts, then transfer between the two such as:-

1st TSB account £2000 + £500 -> TRANSFER £500 -> 2nd TSB

so keep £2000 in each TSB and bounce the additional £500 back and forth? Can we do this? Would make life easier?

However, so if I or anyone else choose to use this method, it means the £500 will continuously bounce back and forth (year in and year out) and not earn any interest on the £500 (since the 5% is capped at 2K max). Surely it would be better to transfer it back and forth between another external account (Santander).

KTF

stupendous_J wrote: »

Had this discussion with Badger09 in an earlier post. I was under the impression that you would have to initially transfer £500 from another organisation (Santander) and then trasfer it across to the other account back to my main Santander account?

Reading the TSB T&C I can't see why you CAN'T do it as you suggested KTF? so:-

2K in each TSB account, then Transfer an additional £500 into one of the accounts, then transfer between the two such as:-

1st TSB account £2000 + £500 -> TRANSFER £500 -> 2nd TSB

so keep £2000 in each TSB and bounce the additional £500 back and forth? Can we do this? Would make life easier?

However, so if I or anyone else choose to use this method, it means the £500 will continuously bounce back and forth (year in and year out) and not earn any interest on the £500 (since the 5% is capped at 2K max). Surely it would be better to transfer it back and forth between another external account (Santander).

My plan is to do:

1st TSB account £2000 -> TRANSFER £500 -> 2nd TSB
2nd TSB account £2000 (£2500 for the few seconds the additional £550 is in it) -> TRANSFER £500 -> 1st TSB

So 1 feeds 2 and 2 feeds 1 the £500 and no new money is needed.

The above has worked with no problems for my Halifax Reward and Lloyds Vantage accounts (when I used them) and its the same backend for TSB as well.

stupendous_J

kteara wrote: »

Thanks for the reply. The problem is I am a student and I can not afford to pay £500 a month for 12 months. Will this be a problem? I only earn £150 or so a month from my part time job.

Hi Kteara,

Apparently I might of been wrong and it might be possible to just transfer £500 back and forth between the two TSB accounts (or just between your external account and 1st TSB account if you only have one). SEE MY EARLIER POST ABOVE.

Can someone else please confirm how / what method they are using to transfer the £500 in & out of the TSB accounts? What is the best approach to do this...maybe =

1st TSB = £2000
2nd TSB = £2000

Then on the 5th off each month (or any day after the interest is paid) transfer £500 from each account to the other i.e.

1st TSB -> £500 to 2nd TSB
2nd TSB -> £500 to 1st TSB

stupendous_J

You beat me to it KTF! lol. Cool! It's nice to hear that this method has worked for you in the past. Brilliant!!!

Thank you and everyone else for their advice.

YorkshireBoy

stupendous_J wrote: »

Can someone else please confirm how / what method they are using to transfer the £500 in & out of the TSB accounts? What is the best approach to do this...

Define "best"?


The simplest way, assuming these are savings you won't need to pull on, and you have the max £2K in each, is to use 3 standing orders...


£506.50 TSB1 > TSB2
£513.00 TSB2 > TSB1
£13.00 TSB1 > wherever


where £6.50 is (roughly...actually it's £6.64) the average interest per month (after tax).


That way, you can just log in every now and then to check all's OK and don't need to bother transferring funds or making external payments manually.




EDIT: The reason for shifting the interest from 1 to 2 (when you don't really need to) is so that if ever they run any programs to see who's 'abusing' the accounts (ie straight £500 credits) your accounts won't be flagged! Possibly unnecessary overkill, but since it's costs nothing what's the harm?

stupendous_J

Perfect! Thank you YorkshireBoy.

I like the idea of that, as it saves me the hassle of keep logging in just to transfer a couple of pounds on interest back and forth to my main account (I struggle to get regular internet access when I work away).

That's my only niggling concern, that with a large majority of people using the 500 in-out / back & forth between both / all of their TSB accounts, whether TSB will cotton on to this and amend the T&C's at a future date to combat this.

Aquamania

stupendous_J wrote: »

...That's my only niggling concern, that with a large majority of people using the 500 in-out / back & forth between both / all of their TSB accounts, whether TSB will cotton on to this and amend the T&C's at a future date to combat this.

I'd like to think TSB have already considered this will be happening with some accounts, and it's a risk they are prepared to take over this 'loss leading' account - that's what MSE now describe this account as in today's email.

If they haven't, then I'm sure they will realise there will be a huge closure of accounts if/when they significantly reduce the current rates/terms.

It only takes about 10 mins to open an account - it'll take even less time to empty the account (once we get our activation codes) and TSB can then close it at their pleasure.

marks87

I don't see why TSB would care about the £500 simply being recycled. People who use the accounts in this way are keeping a fixed £4,000 in there, whereas those who use it as a normal current account will see it dwindle as the month goes on.

It's also nothing new; people were doing this with the Enhance accounts. So they'd have been able to exclude internal transfers in the T&Cs if they'd wanted.