Using current accounts for saving - direct debits

wwfc_2

Hi all

I'm trying to maximise the current interest rates, we have now fully paid of mortgage and a family loan so we don't have massive amounts of money saved and what we do have id sooner have it readily accessible and not tied up at present.

Currently I have a Halifax reward current account, all our household bills go out of this

Halifax saver, interest rate is rubbish

have a virgin savings account which was northern rock but ive emptied it recently and maximised 6 tsb plus accounts (2 joint and 2 in each of our sole names) as again interest rate has been dropped heavily

Now I don't know what to open next, looked at club Lloyds but I don't want to move direct debits from Halifax at present, can you set up token direct debits from one of my other accounts?

Was also considering the nationwide 5% a bonus is that no direct debits are needed

or should I go for something different, will be aiming to save between 1k and 1.5k a month, all our annual bills come from our savings accounts as do holidays and emergency fund, hence I don't want to tie it up

wallyUK

I have opened a Club Lloyds to use for savings and have moved two small DDs to it. You could set up 2x Tesco savings accounts which can be funded by DD to fulfill that requirement as well. Nationwide would only pay interest up to £2.5K which you could reach in about 2-3 months and I think you can just have one account earning the 5% (?). I am thinking about getting a Santander 123 to move some ISA money in to. It is a lower rate at 3% and you need to have 2 DDs going out as well.

dougzz

Covered in lots of places. Tesco savings accounts can get you two DDs, and the Post Office another one. Bank of Scotland Vantage can get you three accounts paying 3% on £5K each, and I think these don't need DDs, just £1K in a month which you can do by moving the money around on the same day. Lloyds club needs two DDs, and £1500 I think from outside of Lloyds, but pays 4% on £5K. TSB allows two Classic Plus accounts paying 5% on £2K, need to pay in £500/month, no DDs required.
You can also make charitable donation via DD, I'm pretty sure they're listed on here somewhere too.

SuperHan

[STRIKE]http://www.lloydsbank.com/current-accounts/club-lloyds.asp

It doesn't require direct debits moving.

You just need to move £1,500 through the account each month.

I have a main Halifax account that pays everything, all DD's etc.

Then I have £5k in the Lloyds account funded by a standing order of £1,500 that goes in and out on the same day, receiving 4% interest.

Then a TSB account with 5% interest that is funded by £500 p/m in a similar way.

It depends how much savings you have though as to what the best set up is.[/STRIKE]


Oops, yes it does require DDs.

Is this new, as I don't have any set up on mine, but I've been getting 4% ??

colsten

wwfc wrote: »

Currently I have a Halifax reward current account, all our household bills go out of this

You could probably get quite a bit of cashback if you moved those to Santander 123. Replace the DDs at Halifax with a couple of 'easy' DDs, such as the Tesco ones mentioned.

You only mention one Halifax Reward - assuming there's 2 of you, you could have 3 of these between you. One sole each, and one joint. £180 a year instead of £60.

colsten

SuperHan wrote: »

Is this new, as I don't have any set up on mine, but I've been getting 5% ??

Are you confusing the Club Lloyds with the TSB Plus? TSB Plus does not need DDs and pays 5% AER. Club Lloyds has always needed 2 DDs, and it pays 4% AER (provided you have more than £4K in there). I think I read somewhere they give you a a month's grace for the £1,500 and the 2 DDs, may be that's why you got some interest without having any DDs. Or may be you do have DDs?

http://www.lloydsbank.com/current-accounts/club-lloyds.asp

SuperHan

colsten wrote: »

Are you confusing the Club Lloyds with the TSB Plus? TSB Plus does not need DDs and pays 5% AER. Club Lloyds has always needed 2 DDs, and it pays 4% AER (provided you have more than £4K in there). I think I read somewhere they give you a a month's grace for the £1,500 and the 2 DDs, may be that's why you got some interest without having any DDs. Or may be you do have DDs?

http://www.lloydsbank.com/current-accounts/club-lloyds.asp

Thanks (and for your reply in the other thread - I felt bad jumping in on someone else's and hadn't received a reply at the time of starting a new one!)

It must be the grace period, as I definitely don't have direct debits and I'm definitely thinking of the Lloyds account! The 5% was a typo in my other post.

I must have just overlooked the fact when opening the account (or forgot because I opened the TSB at the same time), and not noticed because I was receiving interest.

I will move them promptly then and hopefully still receive interest this month.

Thanks again

wwfc_2

Thanks all

I have set up a Tesco account for now, I will look at the other options mentioned later, off to enjoy this nice weather

Dragonfly1

SuperHan wrote: »

Thanks (and for your reply in the other thread - I felt bad jumping in on someone else's and hadn't received a reply at the time of starting a new one!)

It must be the grace period, as I definitely don't have direct debits and I'm definitely thinking of the Lloyds account! The 5% was a typo in my other post.

I must have just overlooked the fact when opening the account (or forgot because I opened the TSB at the same time), and not noticed because I was receiving interest.

I will move them promptly then and hopefully still receive interest this month.

Thanks again

I don't believe you first "partial" month of interest requires 2x DD - since your usual bills may have been taken via DD before the account was fully set up, through no fault of your own. They are only needed from the first full month of the account.

wwfc_2

right

I've got to the 3k limit now for interest on the Tesco account and TSB's 5% are all maxed

Im looking now at the 123 account, if I choose to switch my Halifax account using the switching service can you choose which DD to allow it to switch or will it switch them all?

Ideally I only want to switch DD to 123 that will get me cash back whilst keeping others that wont with Halifax to get the £5 pm, ideally id like to keep my wages going to Halifax ad then move the required amount to 123, is that all possible?

Or is there a better rate that ive missed

Thanks in advance for any help

Archi_Bald

If you want to keep an account, you have to move the DDs yourself. It's not very hard to do - just tell the payees your new sort code and account number once you have money in the new account and are ready to pay from the new account. Many payees allow you to do it online if you have an account with them (e.g. electricity / phone / broadband companies), others do it over the phone. Some councils and credit card firm insist on a signed piece of paper.

If you want any DDs to be moved for you, all of them (plus any SOs and incoming payments) will be moved, and your account will automatically be closed.

Keeping the Halifax account makes a lot of sense for the £5, so you probably need to opt for the first option. Shouldn't be a lot of work because it's less than half a dozen DDs to be changed.