Transferring money between accounts to meet minimum credit requirement?

CreditCrunchie

I have a flexdirect account with nationwide which is my main bank account and currently handles all my wages and direct debits ect. I've just opened the Santander 123 and intend to transfer some direct debits there to get the cash back on them. I've just applied for a first direct account for the £100, and I'm planning on opening the tsb 5% when it's available. Right now my balance is low (3k ish in each month but after bills and debts it sits around £500 though will build quickly and by August be over 4k), so my question is can I simply transfer money from Nationwide into each of these accounts and then transfer it back again, thereby meeting the minimum monthly credit until I have enough to leave in each account?

My goals for doing all this are to maximise on my short term saving for our wedding next June, and mortgage deposit by by December 2015. I will also need smaller 'pots' for tax and for the animals (instead of insurance).

Hope that makes sense. This is all new to me

[Deleted User]

CreditCrunchie wrote: »

I have a flexdirect account with nationwide which is my main bank account and currently handles all my wages and direct debits ect. I've just opened the Santander 123 and intend to transfer some direct debits there to get the cash back on them. I've just applied for a first direct account for the £100, and I'm planning on opening the tsb 5% when it's available. Right now my balance is low (3k ish in each month but after bills and debts it sits around £500 though will build quickly and by August be over 4k), so my question is can I simply transfer money from Nationwide into each of these accounts and then transfer it back again, thereby meeting the minimum monthly credit until I have enough to leave in each account?

My goals for doing all this are to maximise on my short term saving for our wedding next June, and mortgage deposit by by December 2015. I will also need smaller 'pots' for tax and for the animals (instead of insurance).

Hope that makes sense. This is all new to me

Yes you can rotate the same money through the accounts to meet the minimum credit requirements.

The only usual restriction is that the money needs to come from a different organisation, but as you appear to be opening accounts with different organisations, this shouldn't hinder you.

Even if you later decide to open another account with one of the banks you already have an account with that can be overcome by rotating the money in the correct order.

e.g. Bank X -> bank Y -> bank X

zerog

CreditCrunchie wrote: »

thereby meeting the minimum monthly credit until I have enough to leave in each account?

You still need to do the transfer even after the accounts are all full, to earn interest

CreditCrunchie

Thanks, that's pretty much what I was thinking. Any other tips?

cosmicrichie

Once you've reached the full amount, then any interest paid per month you'll want to withdraw each month as that will take you over the full amount and therefore you wouldn't get interest on that interest. You can just take it out when you transfer back out the monthly crediting requirement.

As you've applied for FD you may want to look at their regular saver at 6%. It'll be fixed for a year so it'll expire in time for your wedding (unless by next June you meant this coming June) but obviously depends whether you can lock it away or you'll need it to pay for things for the wedding in advance.

LydiaJ

There are all sorts of ways to meet the minimum credit requirements.

A few years ago I was changing the day of the month on which I did my shuffle round from one account to another, and realised that I wouldn't qualify for a particular month. It was short notice to do anything about it because it was back in the bad old days when some of the banks in question didn't have faster payments, so I went to the branch, took out cash from the cashpoint, went indoors, and paid it back in over the counter. That qualified as funding the account. (Not that I would recommend doing that every month, of course - too much hassle and potential to forget to do it on the right day.)

GingerFurball_2

Ha, my brother used to do that with the URCA. His net pay was just under £1000 so he'd withdraw the difference in cash then deposit it over the counter.

CreditCrunchie

Thanks all. I've set up online banking with Santander today and transferred over £500, then transferred it right back again. The process was quick and easy. Now to wait and see if it will count or if they need the money to be in there for 24 hours instead.

Herbalus

CreditCrunchie wrote: »

Thanks all. I've set up online banking with Santander today and transferred over £500, then transferred it right back again. The process was quick and easy. Now to wait and see if it will count or if they need the money to be in there for 24 hours instead.

It doesn't have to stay in for 24 hours. If you look at the terms and conditions it says "transfer in at least £500", not "transfer in and leave for 24 hours". You've fulfilled the requirement the instant the money is in. Remember many people set up their bills to leave the day after payday so even people not cycling money through don't always have it in the account for long.

ColdIron

CreditCrunchie wrote: »

Now to wait and see if it will count or if they need the money to be in there for 24 hours instead.

It'll count, don't worry

CreditCrunchie

They sent me a text today saying "Don't forget, you can pay your wages into your new Santander 123 account!" LOL