MSE News: TSB to pay 5% interest on new current account – is it any good?

Graham.cat

My thanks to bigadaj, Crag30, EarthBoy, mrssjs, and d70cw6 for your advice.
From what you say, it looks like the monthly saver can be renewed or replaced with a new one, like the HSBC one, recognising of course that the first-year one will drop to a low rate and need the cash moving.
We can but guess whether 5% will still apply in a year's time, of course.
I tried d70cw6's suggestion, and like him, got an error message. Maybe that's the TSB's way of saying "at the moment you do not have any renewal options due to being in your first year", but that's just a guess.
Perhaps, in time, someone will be able to tell us that they HAVE opened a second or third regular saver.
Regards to all.

steveh2001

Hi
With the Classic Plus account @ 5% - has anyone just opened it for savings and sent £500 back and forth between another account?

Does this work OK if I just leave it overnight, i.e. send £500 1st of the month into TSB adn send it back out 2nd of the month?

Cheers
Steve

10_66

steveh2001 wrote: »

Hi
With the Classic Plus account @ 5% - has anyone just opened it for savings and sent £500 back and forth between another account?

Does this work OK if I just leave it overnight...

You don't need to leave it in overnight, you can transfer it in and out again immediately.

steveh2001

Perfect - thanks

Dan83

Set up a standing order with another account, so when £500 is paid in, it's also paid out.

steveh2001

Thanks - I assume interest is calculated overnight so you could put a standing order for £500 in and £500 out on the same day then whenever the money comes out in the day I won't loose any interest?

YorkshireBoy

steveh2001 wrote: »

Thanks - I assume interest is calculated overnight so you could put a standing order for £500 in and £500 out on the same day then whenever the money comes out in the day I won't loose any interest?

In theory, no you won't. However, one bank (Tesco) will send SOs on a non-working day, meaning you'd lose up to 4 days interest at 3% AER if you were funding from there.