TSB Classic Plus Account

BalanceTransferDude

Hi there,

I'm looking at opening a TSB Classic Plus Account and put £2000 in straight away, in order to start getting the maximum benefit of the 5% AER. I know I have to pay in £500 every month to ensure I get the benefit (and then can transfer the £500 back out straight away) but let's say I leave it in there, will I continue to get interest on the £2000?

The reason I ask is because there is a line in the terms and conditions which states:

"We do not pay interest on balances above £2,000".

Sorry if this is a silly question .

BTD

moneyfoolish

My understanding is that you only get interest on £2000 and anything held in the account over that gets no interest at all.

Gromitt

moneyfoolish wrote: »

My understanding is that you only get interest on £2000 and anything held in the account over that gets no interest at all.

Your understanding is correct

YellowStarling

This was actually a question I had too so thanks for the post BTD and for the two replies guys. One thing I'd like to add: Does this mean there is a need to 'skim' the interest?

For example, for ease let's assume that BTD is a non-tax payer and they drop the whole £2000 into the account upon opening. After a month, an interest payment of £8.15 is credited to the account, leaving the balance at £2008.15.

Will this £8.15 surplus need to be skimmed into another account to ensure interest is paid on the £2000 for the following month and, if so, is there a danger that some interest is missed out on whilst the transaction takes place if the interest is calculated daily and not monthly?

hunsbury0

You will still get the interest on £2000.00 but not on the surplus £8.15.
I would transfer out the monthly interest to another a/c to earn interest on the £8.15.

YellowStarling

hunsbury0 wrote: »

You will still get the interest on £2000.00 but not on the surplus £8.15.
I would transfer out the monthly interest to another a/c to earn interest on the £8.15.

Thank you very much Hunsbury, just the answer I was after.

bigadaj

hunsbury0 wrote: »

You will still get the interest on £2000.00 but not on the surplus £8.15.
I would transfer out the monthly interest to another a/c to earn interest on the £8.15.

Theoretically good advice but not critical. It only means missing out on around 4p of interest which doesn't add up to a huge amount of anyone's time really.

sopranolmu

Hiya! I'm looking at opening one of these for myself, and my parents and sister are considering it also. Are there any catches to this account? Eg do you have to have direct debits from it every month, like the Halifax Reward etc?

moneyfoolish

No Direct Debits needed on this account.

Snowbelle

BalanceTransferDude wrote: »

Hi there,

I'm looking at opening a TSB Classic Plus Account and put £2000 in straight away, in order to start getting the maximum benefit of the 5% AER. I know I have to pay in £500 every month to ensure I get the benefit (and then can transfer the £500 back out straight away) but let's say I leave it in there, will I continue to get interest on the £2000?

The reason I ask is because there is a line in the terms and conditions which states:

"We do not pay interest on balances above £2,000".

Sorry if this is a silly question .

BTD

You can open 2 put £2000 in each account and set up a SO for £500 between the 2 accounts.

brenda10

sopranolmu wrote: »

Hiya! I'm looking at opening one of these for myself, and my parents and sister are considering it also. Are there any catches to this account? Eg do you have to have direct debits from it every month, like the Halifax Reward etc?

Ha ha Excellent.