Using A current account as a savings account

Vortigern

jenfa wrote: »

You do need to keep an eye on when your money goes over the limit set by the banks as you won't receive interest until it is lowered.

This seems to be a popular misconception. I don't know of any bank which will stop paying interest if your balance exceeds a limit.

For example:
TSB pays 5% interest on balances up to £2000
If you have £2000 in the account, you'll get 5% on £2000
If you have £5000 in the account, you still get 5% interest on £2000

So that's one thing less for you to worry about.

AFK_Matrix

butterflymum wrote: »

Do also ensure that you've opted-in to paperless correspondence as well as paperless statements (as they are two separate options, but both are required for interest to be earned).

Hmmm gonna have to double check this tonight as I know I did one of those things!! Don't suppose you know where those 2 options are on the tsb internet banking page are?

butterflymum

AFK_Matrix wrote: »

Hmmm gonna have to double check this tonight as I know I did one of those things!! Don't suppose you know where those 2 options are on the tsb internet banking page are?

Whole thread about it at https://forums.moneysavingexpert.com/discussion/4988588

Amongst other places, you can access the options via your 'Inbox', near top right of internet banking.

Make sure you follow through all stages of opting in and finish by inputting your password as requested, then check you receive an email to confirm the choice/s you have made.

AFK_Matrix

Awesome thanks butterflymum, much appreciated and will sit down tonight and make sure its all sorted out.

jenfa

Vortigern wrote: »

This seems to be a popular misconception. I don't know of any bank which will stop paying interest if your balance exceeds a limit.)

I speak from actual experience this happened several times with my Lloyds bank vantage accounts when if I had over £5000 by even a penny I did not receive interest that month, my bank manager confirmed this was the case, if this hasn't happened to others I would be very interested to know and then I can complain to Lloyds yet again.

colsten

I agree with the Vortigern - no bank will stop paying interest on the qualifying balance if you go over the limit.There must have been another reason for you not getting interest. The 2 pre-reqs for interest payment on Vantage were, until yesterday:

1. pay into your account at least £1,000 during the calendar month;
   and
2. keep your account in credit (that is above £0) during the monthly billing period.

You should check whether one or both of these applied in the months where you got no interest.

Mr_Goodkat

butterflymum wrote: »

Do also ensure that you've opted-in to paperless correspondence as well as paperless statements (as they are two separate options, but both are required for interest to be earned).

The above is incorrect as per the account terms and conditions the only two conditions to receive the 5% interest are:
1) Fund the account with £500 per month
2) Activate paperless statements


There is nothing in the T&C's to say that you have to opt in to paperless correspondence.


I have paperless statements but paper correspondence and have received the interest each month on both accounts since opening.

Mr_Goodkat

jenfa wrote: »

I speak from actual experience this happened several times with my Lloyds bank vantage accounts when if I had over £5000 by even a penny I did not receive interest that month, my bank manager confirmed this was the case, if this hasn't happened to others I would be very interested to know and then I can complain to Lloyds yet again.

This is not the case.


All accounts I have ever experienced with a limit on the balance they pay interest on will not refuse to pay interest if you exceed the limit. They simply pay the percentage interest on the maximum figure e.g £5k then pay 0% on the balance over that.


Banks DO NOT want us to operate our accounts holding only the maximum interest bearing amount in them they would we quite happy for us to hold more.


I suspect you fell foul of the account conditions e.g you did not deposit £1000 into the account the previous month.

butterflymum

Mr_Goodkat wrote: »

The above is incorrect as per the account terms and conditions the only two conditions to receive the 5% interest are:
1) Fund the account with £500 per month
2) Activate paperless statements


There is nothing in the T&C's to say that you have to opt in to paperless correspondence.


I have paperless statements but paper correspondence and have received the interest each month on both accounts since opening.

For those who opened their accounts before paperless correspondence became available, the T & Cs received clearly stated:

Eligibility Conditions Each month you must:
• pay at least £500 into your account
• be registered for Internet Banking and paperless statements (and paperless correspondence, if available).

a copy of which can be found via:


http://www.tsb.co.uk/search.asp?q=cl...and+conditions

and as such, paperless correspondence became available in early June, thereby requiring those who had originally only opted-in to paperless statements, to then also opt-in to paperless correspondence. It is quite possible that, for the month of June, for accounts opened before paperless correspondence 'went live', TSB have perhaps waived the 'paperless statement' requirement to give people a chance to change their settings, albeit I do not know if this is the case.

Also, for those opening accounts since 'paperless correspondence' went live, the account summary page clearly states, at http://www.tsb.co.uk/current_accounts.asp

our rate isn’t a bonus or introductory rate and all we ask is that you pay in £500+/month, register for Internet Banking, paperless statements and correspondence

and, I believe, this is also reflected in the T&Cs of accounts opened since availability of paperless correspondence.

butterflymum

As I also posted on another thread:

In case people hadn't downloaded and read the T & Cs on opening, they then followed up with an email attaching same and stating in body of email:

“ Credit interest is only paid on the first £2,000 in your account, and is paid on the first working day of the month. You will need to pay in £500 a month, register for Internet Banking and paperless statements (plus paperless correspondence, when available).”

All of which they asked people to:

“Please take some time to read them carefully, and print or save them for your records."