High Interest Current Accounts

Pooh_Bear

I have just retired at age 60 and have ~£20k from tax-free lump sums on which, like everybody else, I would like to get some half decent interest .

All mortgages, credit cards, loans, etc paid :j.

ISA limit used up to new £15k limit.

Being risk averse, high interest current accounts look to be the best choice for getting interest with mininimal risk.

I am considering TSB Classic Plus and Santander 123 - I wouldn't dream of using either for a real current account but with organisation it seems I can put ~£20k in these and use them to earn interest.

The intention, which I'm sure others already do, is to shuffle money beteween several accounts to meet the minimum requirements.

Questions:

1. In both cases, can I have more than one account?

2. Santander 123 has a requirement for a minimum of 2 direct debits per month. Can these be to another current account in my name?

3. Any problems in closing these accounts, especially the Santander 123 which has a monthly fee of £2?

Thanks,

Larry

Reaper

Pooh_Bear wrote: »

I am considering TSB Classic Plus and Santander 123 - I wouldn't dream of using either for a real current account

Why not? It's the easiest way of doing it. I use Santander with no problems.

1. In both cases, can I have more than one account?

Article here tells you.
http://www.moneysavingexpert.com/savings/savings-loophole?_ga=1.79798430.88245635.1395225779
You need joint accounts too to maximise the number

2. Santander 123 has a requirement for a minimum of 2 direct debits per month. Can these be to another current account in my name?

I think you may be confusing standing orders and direct debits. They have to be direct debits and I don't believe that is possible.

3. Any problems in closing these accounts, especially the Santander 123 which has a monthly fee of £2?

No. Another reason for using the Santander one as a genuine account is if you pay your bills from it you get refunds which should more than cover the monthly fee

Mattygroves2

Some people use Tescos savings accounts as DDs but I can't understand why you wouldn't switch your council tax and utilities over to cover the £2 fee - works for me even in two months when council tax isn't paid.

moneyfoolish

My wife has absolutely no interest in money other than spending it so I try to maximise our savings as much as I can for both of us. She has her own current account with Natwest and I also have one with Natwest. Most of our savings are in Cash ISAs and National Savings Index Linked bonds. However, some time ago, I opened Santander 123 current accounts for each of us plus a joint account. I moved all our direct debits from my Natwest account (I pay all household bills) to the 123 accounts. Now, I'm looking at opening some TSB Classic Plus, Nationwide FlexDirect and Tesco accounts. I'm looking at those accounts because they don't require direct debits to be set up. Am I correct in thinking that I could set up 1 FlexDirect for each of us plus 1 joint, 2 Classic Plus for each of us plus 2 joint and 2 Tesco for each of us? That is, a total of 13 accounts? I have no intention of using any of these accounts as anything other than a savings account. I notice some of them ask if the account is to be used as a savings account and I would be obliged to say it is. Will they still allow me to open the account? Also, will I be able to run these accounts online without my wife having to do anything other than sign the odd form?

kidmugsy

Mattygroves2 wrote: »

works for me even in two months when council tax isn't paid.

It's possible (usually? always?) to arrange that your council tax is paid in monthly instalments.

Mojisola

kidmugsy wrote: »

It's possible (usually? always?) to arrange that your council tax is paid in monthly instalments.

Our council has always used the ten month method. They don't give you the option of paying over 12 months.

(Quick google shows that the option became possible last year. It must suit the council to carry on with the 10 payments because they don't tell you about it.)

bigadaj

kidmugsy wrote: »

It's possible (usually? always?) to arrange that your council tax is paid in monthly instalments.

Yes, but it's normally ten monthly instalments, don't know why, maybe the council struggle with their twelve times table. So no council tax paid for most people in February and March, I'm sure the bias towards early collection and positive cash flow has no bearing on this arrangement!

Archi_Bald

kidmugsy wrote: »

It's possible (usually? always?) to arrange that your council tax is paid in monthly instalments.

It doesn't really matter because

1. Santander do not require DDs to be paid monthly (or with any frequency - the DDs just need to be there)
2. you get 1% cashback on your council tax bill regardless of whether you pay in 1, 10 or 12 instalments, so you get the same amount regardless

Mojisola

bigadaj wrote: »

Yes, but it's normally ten monthly instalments, don't know why, maybe the council struggle with their twelve times table. So no council tax paid for most people in February and March, I'm sure the bias towards early collection and positive cash flow has no bearing on this arrangement!

Our council gives the explanation that it gives them time to chase up non-payers during Feb and March - any money brought in stays within the financial year.

barak

kidmugsy wrote: »

It's possible (usually? always?) to arrange that your council tax is paid in monthly instalments.

Would there be any point in doing that? :undecided
Edit: As Archi Bald has now explained!

Pooh_Bear

Santander has a reputation for poor customer service and TSB has Lloyds systems, and Lloyds management, so I wouldn't consider either for a real and relatively complex current account.

Yes, you are correct - mixing up standing orders and direct debits.

Very suspicious of trying to actually close an account - tried to close a NatWest credit card years ago; took me 6 months. I was twice told the account was closed but kept on getting mail related to the credit card.

I also have probably 6 or 7 'dead' accounts with zero balance which don't cause me any problems or cost me anything so actually closing them is more trouble than its worth.

Concerned with the Santander account that as it potentially has a monthly charge, I fore see all sorts of issues with it going overdrawn because they charge me £2 per month even if it not being used ...