5% Savings Loophole

colsten

I have done, for years now, all my SOs for all these accounts on the same day, without any problems. But none of my accounts would ever have gone overdrawn as a result of the SOs, and I do check my accounts several times a week, so my risk of losing any money ever was literally non-existent.

ceredigion

inittogether wrote: »

Just done this for my wife and her redundancy money (thanks HMRC!). Only used the accounts that don't need direct debits to go out as I pay all the bills. My question is about the standing order set up. Is it really necessary to have a day between each one?

I've set them up like that but some days inevitably hit a weekend then there's a disparity with how the banks pay them out. One has gone on the weekend when I didn't expect it to, on the Sunday. It then overtook the one due for the Saturday as that one did not move until the Monday.

But...can't you just do them all for the same date of each month? 7 accounts, all to the max of the interest rate. If £1000 moves from 1 to 2, 2 to 3, 3 to 4...7 to 1 all on the same dy, won't you have met your responsibility to make the minimum payments all at the same time? Just feels simpler.

Personally I do my standing orders:
1 to 2 to 1
1 to 3 to 1
1 to 4 to 1
etc.
All on the same day.
That way if one fails the whole chain doesn't collapse.
however if the balance is enough in your account to cover the order it doesn't matter much.

Vortigern

inittogether wrote: »

She'll be a non taxpayer from April 6. Can't see a way to inform the banks online, a tick box declaration would be nice. Looks like we'll have to post the R85s.

She can declare herself to be a non-taxpayer through Santander online banking. Other banks are not so advanced.

ceredigion

inittogether wrote: »

Thanks for that. I'll see how difficult it is to change the standing order dates now. Should be simple. March will be her first full month using all the accounts. I've calculated around £72 per month for her. Let's see how close I am!

She'll be a non taxpayer from April 6. Can't see a way to inform the banks online, a tick box declaration would be nice. Looks like we'll have to post the R85s.

Re R85
Santander can be done on line, but all the others (I think) need old fashioned paper.




Got to learn to type quicker !

colsten

ceredigion wrote: »

Personally I do my standing orders:
1 to 2 to 1
1 to 3 to 1
1 to 4 to 1
etc.
All on the day.
That way if one fails the whole chain doesn't collapse.
however if the balance is enough in your account to cover the order it doesn't matter much.

Yeah, I do pretty much the same. One fully maxed 123 account feeds umpteen other current accounts once a month on day X. These current accounts also feed my 123 on the same day with exactly the same amount they received from the 123.

Because the SO-out transactions from each of the accounts don't exceed the account balances and no other payments get made from the accounts, and I also check them regularly, none of them could ever go overdrawn for more than 24 hours at most. If any of them did, the banks would have cocked up and would have to put things right. But, as expected, nothing ever went wrong in about 4 years now, and I can't see why anything would go wrong in the future (safe of apocalyptic solar storms and nuclear wars, which would eliminate our need for bank accounts, anyway).

jimjames

colsten wrote: »

I have done, for years now, all my SOs for all these accounts on the same day, without any problems. But none of my accounts would ever have gone overdrawn as a result of the SOs, and I do check my accounts several times a week, so my risk of losing any money ever was literally non-existent.

The one I have a problem with is Halifax as I don't run a balance on that account so need to allow time between in and out payments.

banjobob59

Just reading the forum and it sounds like everyone transfers the full amount across to each account in one go ie, £500 £1000 or £1500 to satisfy the funding requirements' of each account. I split my standing orders for each account into 4 across the month to avoid a large transfer being sent to fraud department of bank and therefore being delayed. My question is, has anyone had problems transferring such large amounts of money between accounts. Before I split the monthly transfers I had a couple of my £1500 transfers delayed and a phone call from the bank fraud department to check the authenticity of the transaction.

masonic

banjobob59 wrote: »

Just reading the forum and it sounds like everyone transfers the full amount across to each account in one go ie, £500 £1000 or £1500 to satisfy the funding requirements' of each account. I split my standing orders for each account into 4 across the month to avoid a large transfer being sent to fraud department of bank and therefore being delayed. My question is, has anyone had problems transferring such large amounts of money between accounts. Before I split the monthly transfers I had a couple of my £1500 transfers delayed and a phone call from the bank fraud department to check the authenticity of the transaction.

I've never had a problem with single larger transfers, but I recently did get an account locked when I did three smaller transfers over the space of a few days, which was annoying to say the least.

Jsscmm

banjobob59 wrote: »

Just reading the forum and it sounds like everyone transfers the full amount across to each account in one go ie, £500 £1000 or £1500 to satisfy the funding requirements' of each account. I split my standing orders for each account into 4 across the month to avoid a large transfer being sent to fraud department of bank and therefore being delayed. My question is, has anyone had problems transferring such large amounts of money between accounts. Before I split the monthly transfers I had a couple of my £1500 transfers delayed and a phone call from the bank fraud department to check the authenticity of the transaction.

Personally all of my SOs are minimum + a bit, to avoid hitting any future purges the banks might do on people using accounts in this way. No idea if that will help but it doesn't hurt

In terms of issues with transfers the only one I've run into is N&P who seem to insist on even faster payments being scheduled for working days. They do arrive though.

Whilst I have no specific knowledge of the algorithm within fraud detection software, I would assume that it is looking for unusual patterns and compares to limits... So an account owned by someone who stated a 20000 income who is regularly month 15000 through the account will likely trigger a flag more often than an account for some who earns more and moves less.

Vortigern

banjobob59 wrote: »

I split my standing orders for each account into 4 across the month to avoid a large transfer being sent to fraud department of bank and therefore being delayed.

These amounts are not really large; they're supposed to represent normal amounts of salary or pension income.

I doubt that standing order payments, other than the first to a new destination, will ever be referred for a fraud check.