£4k savings. What is the best rate account I should open?

YorkshireBoy

kteara wrote: »

I'm unsure whether you can open two TSB accounts as a single person, I heard it needs to be joint if you're opening a second one but I shall find out.

You can have two sole accounts. Loads of information in the very long thread on the current accounts board (because this is a current account).

YorkshireBoy

kteara wrote: »

surely the TSB account gives higher interest than the Nationwide account right?

They pay the same, but Nationwide's runs for 12 months only. Information on both their websites. Take a look?

Also, If I'm unable to open a 2nd TSB account... Wouldn't halifax Reward Current Account be still a better option than nationwide or not?

Halifax should be an "as well as" account option, not an "instead of" account option.

kteara

YorkshireBoy wrote: »

They pay the same, but Nationwide's runs for 12 months only. Information on both their websites. Take a look?Halifax should be an "as well as" account option, not an "instead of" account option.

really appreciate the advice.

Is there anything wrong with this plan:

2k in TSB account 1
2k in TSB account 2

2 Standing orders in both accounts for a transfer of £500 between eachother and another of £750 (total) to the Halifax account.

Once the £750 is deposited to the halifax account, transfer it back into the TSB accounts so there is always £2k in the TSB accounts at the end of the month. Would this ensure I always recieve the full 5% interest on the maximum £2k limit ?

When is interest for the TSB account calculated? Even though I would have £2000 in the account the majority of the time, when I do transfers/standing orders it might sometimes drop to £1000 or so.

thanks in advance.

YorkshireBoy

kteara wrote: »

really appreciate the advice.

Is there anything wrong with this plan:

2k in TSB account 1
2k in TSB account 2

2 Standing orders in both accounts for a transfer of £500 between eachother and another of £750 (total) to the Halifax account.

Once the £750 is deposited to the halifax account, transfer it back into the TSB accounts so there is always £2k in the TSB accounts at the end of the month. Would this ensure I always recieve the full 5% interest on the maximum £2k limit ?

When is interest for the TSB account calculated? Even though I would have £2000 in the account the majority of the time, when I do transfers/standing orders it might sometimes drop to £1000 or so.

thanks in advance.

Transfer it back from Halifax as soon as you see it arrive. That way, you'll always have £2K in each TSB account. Use SOs for the TSB cross funding but make manual transfers to/from Halifax would be my suggestion. Don't forget you'll need 2 DDs paying out each month from Halifax, and need to stay in credit for the whole month...otherwise you won't get your £5 Reward.


Interest is calculated at the end of the banking day (as it is with all accounts).

kteara

YorkshireBoy wrote: »

Transfer it back from Halifax as soon as you see it arrive. That way, you'll always have £2K in each TSB account. Use SOs for the TSB cross funding but make manual transfers to/from Halifax would be my suggestion. Don't forget you'll need 2 DDs paying out each month from Halifax, and need to stay in credit for the whole month...otherwise you won't get your £5 Reward.


Interest is calculated at the end of the banking day (as it is with all accounts).

so If I was to leave my TSB accounts with less than £2k for one day that would mean I would lose out on the 5% interest that month?

YorkshireBoy

kteara wrote: »

so If I was to leave my TSB accounts with less than £2k for one day that would mean I would lose out on the 5% interest that month?

No you wouldn't.

Archi_Bald

kteara wrote: »

so If I was to leave my TSB accounts with less than £2k for one day that would mean I would lose out on the 5% interest that month?

The account pays 5% AER/4.89% gross variable on balances up to £2,000. So even if you have just £1 in the account all month, you get that rate of interest. In money terms this would obviously be a lot less than if you had had £2,000 in the account all month.

kteara

Archi_Bald wrote: »

The account pays 5% AER/4.89% gross variable on balances up to £2,000. So even if you have just £1 in the account all month, you get that rate of interest. In money terms this would obviously be a lot less than if you had had £2,000 in the account all month.

And when is the interest calculated/given? If I have £1 in the account on the first of the month but put in £2000 on the 31st, will I get the interest for the £2000? or the £1 I had at the start of the month? When is the cut off date?

I don't want to lose out on gaining interest on the Full £2000 when I am transferring money to and from the account each month.

jimjames

kteara wrote: »

And when is the interest calculated/given? If I have £1 in the account on the first of the month but put in £2000 on the 31st, will I get the interest for the £2000? or the £1 I had at the start of the month? When is the cut off date?

I don't want to lose out on gaining interest on the Full £2000 when I am transferring money to and from the account each month.

If you have £1 in the account from 1st to 30th and then put £2000 in on the 31st you will only get interest on £2000 for that one day. A bank won't pay you interest for money that you don't have in your account. I assume that was the question you were asking.

Just leave the whole £2000 in the account and you'll get the full interest paid on it.

YorkshireBoy

kteara wrote: »

And when is the interest calculated/given?

Daily/2nd working day of the month.

If I have £1 in the account on the first of the month but put in £2000 on the 31st, will I get the interest for the £2000? or the £1 I had at the start of the month?

Neither. You'll get circa 30 days at 4.89% on £1 and around 3 or 4 days at 4.89% on £2K. You didn't expect to get interest on money that wasn't in the account did you?

When is the cut off date?

Already answered above...the 1st working day of the month.

I don't want to lose out on gaining interest on the Full £2000 when I am transferring money to and from the account each month.

That's why I told you earlier to send and receive to/from Halifax on the same day.