Transfers/bank holidays & current a/c that pay interest

camperdown9

Hi

I have a number of current accounts that need to be funded each month in order to receive interest. Over the past few months I have moved the money around all on the same day using internet bank.

However this month I am going to be away and it would be easier if I could set this to happen automatically. What I am not sure of is what happens if I set a payment to be made on a date that is a bank holiday? Will the money be taken earlier, on the bank holiday or the day after?

Example (This is what i need to happen)

1st May Transfer £1500 from Nationwide to Lloyds
2nd May Transfer £500 from Lloyds to TSB and £1000 to Halifax
5th May Transfer £500 from TSB and £1000 from Halifax back to Nationwide.

Also how reliable is it to use online banking with payments pre set to happen on dates for this sort of stuff?

I am just a little worried that its all going to go wrong and I will end up with an unauthorised overdraft.

Alex

agrinnall

I think that at least some of the 5th May transfers will actually take place in the early hours of 6th May, as Standing Orders should never be processed earlier than the specified date, and most (probably all) banks will not do SO processing on the morning of 5th May.

eskbanker

camperdown9 wrote: »

I am just a little worried that its all going to go wrong and I will end up with an unauthorised overdraft.

Assuming you have these accounts to get interest and that the balances are greater than those minimum monthly payments, how would you get into overdrafts on any of them?

LittleVoice

camperdown9 wrote: »

Hi

I have a number of current accounts that need to be funded each month in order to receive interest. Over the past few months I have moved the money around all on the same day using internet bank.

However this month I am going to be away and it would be easier if I could set this to happen automatically. What I am not sure of is what happens if I set a payment to be made on a date that is a bank holiday? Will the money be taken earlier, on the bank holiday or the day after?

Example (This is what i need to happen)

1st May Transfer £1500 from Nationwide to Lloyds
2nd May Transfer £500 from Lloyds to TSB and £1000 to Halifax
5th May Transfer £500 from TSB and £1000 from Halifax back to Nationwide.

Also how reliable is it to use online banking with payments pre set to happen on dates for this sort of stuff?

I am just a little worried that its all going to go wrong and I will end up with an unauthorised overdraft.

Alex

Are you going to be away for the whole of May?

Do you have at least £500 and £1,500 in the TSB and Lloyds accounts and no more than £2,500 in N'wide?

If so, you could send in the mail separate N'wide cheques for the £500 and £1,500 to the two accounts. Then have payments set up from those accounts to go out to N'wide the day after you would expect the cheques to be received.

Even if the money left your Lloyds group accounts before your N'wide cheques were received, you would not be overdrawn. You might lose a little interest because you could have more than the interest bearing balance in N'wide until the cheques reached that account.

innovate

LittleVoice wrote: »

. You might lose a little interest because you could have more than the interest bearing balance in N'wide until the cheques reached that account.

Don't think using cheques would be a good idea.

Mr_Goodkat

Cheques would be a terrible idea as you introduce:
Risk of delay or loss by Royal Mail
Cost of postage
Cheque Clearing times


Just set up standing orders to move the money, it is likely your standing orders set for the 5th May would be sent on the 6th May as most banks don't push money on non banking days and a standing order should never be sent before the due date. To avoid any doubt you could just set the SO for the 6th.

LittleVoice

Mr_Goodkat wrote: »

Cheques would be a terrible idea as you introduce:
Risk of delay or loss by Royal Mail
Cost of postage
Cheque Clearing times


Just set up standing orders to move the money, it is likely your standing orders set for the 5th May would be sent on the 6th May as most banks don't push money on non banking days and a standing order should never be sent before the due date. To avoid any doubt you could just set the SO for the 6th.

I realise cheques are out of favour.

I have never, in 50 years of using current accounts, had a cheque of mine lost in the post. Royal Mail is generally reliable but I accept that delays occur, more often in some areas than others.

Postage cost: £1.06 if you don't have old stock, less than the loss of interest (or monthly charge) if you don't meet the funding requirements.

The £500 in TSB will earn interest without waiting for clearance if the account has less than £2,000 before it is deposited. As long as the TSB and Lloyds accounts have at least the £500 and £1,500 in them any way and they are just saving vehicles, the clearance times is not much of an issue.

Cheques sent by RM are an alternative if the OP is going to be out of the UK for the whole of May and seems concerned about when future dated payments will happen.

Of course, if the accounts already have balances which would cover the payments, there is no reason why all of the payments cannot be set up for the same day - say Tuesday 6 May or 27 May.

Mr_Goodkat

LittleVoice wrote: »

I realise cheques are out of favour.

I have never, in 50 years of using current accounts, had a cheque of mine lost in the post. Royal Mail is generally reliable but I accept that delays occur, more often in some areas than others.

Postage cost: £1.06 if you don't have old stock, less than the loss of interest (or monthly charge) if you don't meet the funding requirements.

The £500 in TSB will earn interest without waiting for clearance if the account has less than £2,000 before it is deposited. As long as the TSB and Lloyds accounts have at least the £500 and £1,500 in them any way and they are just saving vehicles, the clearance times is not much of an issue.

Cheques sent by RM are an alternative if the OP is going to be out of the UK for the whole of May and seems concerned about when future dated payments will happen.

Of course, if the accounts already have balances which would cover the payments, there is no reason why all of the payments cannot be set up for the same day - say Tuesday 6 May or 27 May.

But why waste £1.06 on postage when it can be done for free through standing order?


There will be no loss of interest or monthly charge if the customer uses standing orders so the cost of £1.06 is against a cost of £0

Archi_Bald

Cheques wouldn't just cost extra, they would also introduce totally unneccessary delays in shifting the required money about.

OP, not sure what problems you see with SOs. If you have more money than you need to send out in each of your accounts, it wouldn't really matter if you were short of the SO-ed amount for a day or two, and you can set up the SO all for the same day. If you don't have enough money to cover the SOs, then why are you doing the SOs?

Other than that, you have an entire month to shift the money around, so if you do want to have some days in between the SOs, you can do that too.

al25

camperdown9 wrote: »

Hi

I have a number of current accounts that need to be funded each month in order to receive interest. Over the past few months I have moved the money around all on the same day using internet bank.

However this month I am going to be away and it would be easier if I could set this to happen automatically. What I am not sure of is what happens if I set a payment to be made on a date that is a bank holiday? Will the money be taken earlier, on the bank holiday or the day after?

Example (This is what i need to happen)

1st May Transfer £1500 from Nationwide to Lloyds
2nd May Transfer £500 from Lloyds to TSB and £1000 to Halifax
5th May Transfer £500 from TSB and £1000 from Halifax back to Nationwide.

Also how reliable is it to use online banking with payments pre set to happen on dates for this sort of stuff?

I am just a little worried that its all going to go wrong and I will end up with an unauthorised overdraft.

Alex

My personal experience is that standing orders never get processed during the weekend or bank holidays. Instead the next working day.
But if you setup a future dated payment it will get processed on the instructed date.