TSB cutting enhance rate?

guitarman001

apt wrote: »

I feel for you, guitarman. Such a burden to set up a couple of direct debits and to spend 5-10 minutes on internet banking once a month.

It's not just that, though, is it? It's ringing up the bank and being put on hold for ages (costing money) in order to close old accounts. It's checking the conditions, having to ring up service providers to change bank numbers for those requiring direct debits. It's having to log into 6-8 bank accounts every month to check your balance and transfer money over the interest-bearing amount. It's just a pain having had to do this for 6 years on the trot for paltry interest rates. I know it's no hardship, I'm just tired of having multiple accounts and all that it entails. I'll be glad to have a 123 account soon which will give me up to £20k to stash without having to open several other bank accounts. Problem occurs when you start getting to the £60k+ savings scenario - where do you start putting it all?

YorkshireBoy

guitarman001 wrote: »

It's ringing up the bank and being put on hold for ages (costing money) in order to close old accounts.

Write to them instead.

It's checking the conditions

Many people don't. They come on here and ask. They should read them though, so I'm with you on that one.

having to ring up service providers to change bank numbers for those requiring direct debits.

A pair of Tesco savings accounts is all you need.

It's having to log into 6-8 bank accounts every month to check your balance and transfer money over the interest-bearing amount.

I agree you should check for any fraudulent transactions, but as for transferring money then just keep the balance below the max allowed so you don't have to transfer the interest out. For example, I run TSB with around £1,950 and Club Lloyds with around £4,950, meaning I don't need to transfer interest out as often. An alternative would be to set up your Tesco DDs to pull the interest automatically. Indeed, that's what I do with my Halifax Reward payments.

It's just a pain having had to do this for 6 years on the trot for paltry interest rates.

Doesn't seem like 6 years to me...probably 2-3 max.

I know it's no hardship

Correct...if you set your stall out correctly.

I'm just tired of having multiple accounts and all that it entails.

Then set your systems up better...or manage without.

I'll be glad to have a 123 account soon which will give me up to £20k to stash without having to open several other bank accounts.

Agree.

Problem occurs when you start getting to the £60k+ savings scenario - where do you start putting it all?

Answer...if you're not prepared to put in a bit of work then you put it in accounts that pay much less interest - and let inflation lose you money. Or you put some into stocks and shares. But if there's two of you, you can make 3-5% AER on up to £125K (unless I've forgotten any accounts?) in current accounts.

colsten

Not that it helps you now, but I wonder why you didn't get yourself 4 123 accounts whilst you could have an unlimited number of them. Less than 2 years ago that was still possible, and if you had acted then, you could have £80K in a few simple 3% accounts with a single provider.

I feel you are making a mountain out of a molehill

• if you need to ring a bank, use one of the numbers on saynoto0870.com, or printed on the back of your debit cards. These numbers are invariably included in free minute deals that most people have these days, and are low cost landline numbers. Some banks even have freefone numbers.
  
  
• closing accounts -- why close them all? Use some of them to switch (for money).Pop into a branch when you are next in town, give them the debit cards and ask them to close the accounts (that's how I closed 5 FlexDirects in less than 30 seconds)
  
  
• direct debits - don't faff about with your real DDs. Set up special DDs for those accounts that need them
  
  
• logging into accounts: use an account aggregation service such as ewise. Logs you into dozens of providers within seconds, provides you with a list of all your accounts and balances on the same display, and checking each account for details is a doddle

Lots of people would bite your arm off for the opportunity to have to manage £60K across a number of accounts and they won't understand what you are moaning about.

Though you have alternatives if it is all too hard - - savings accounts are the obvious ones. Investment for some of your cash is another potential alternative.

knack92

guitarman001 wrote: »

Because all banks are the same! They're trying to get us to shift our money into alternative investments and then hoover up the money cheaply when those investments tank.

This is bad news. I have £30k between 3 TSB and 3 BoS accounts. Where will I put it now?

Can you have 2 Santander 123 accounts? I note you need two direct debits... I'd maybe set up one (£1 per month) to a charity as I only have one direct debit. But add in the £2 per month fee and that's 12 * £3 = £36 a month fee, effectively. Definitely eats into the rate.

BoS is a separate bank from TSB and unlike it and Lloyds Bank hasn't recently launched a new interest paying current account. BoS is still running print advertising for the Vantage account so I doubt it's going anywhere soon.

guitarman001

Just a quick note to say I also got the letter. Rate cut to 1.5% from November.

anna42hmr

got mine, off now to open two tesco accounts to replace them! looking at the account 3% no direct debits needed and £750 pay in per month (£5 charge if don't pay the £750 in) though i can't make up my mind if can be internally or if it needs to be externally

to be honest only a matter of time that they changed the rates at tsb on the account, it was pulled from sale several months ago, and they are now concentrating on the Plus account, so it was nice whilst it lasted. May keep some money one of the enhance accounts and use as a feeder for the lloyds club monthly saver account that i opened a while back.

talexuser

anna42hmr wrote: »

i can't make up my mind if can be internally or if it needs to be externally.

I run my 750 swaps internally.

anna42hmr

talexuser wrote: »

I run my 750 swaps internally.

thanks for the reply, i appreciate it thats fine will set up standing orders between them when the accounts are opened.

missile

Archi_Bald wrote: »

Did you leave £4K behind in two TSB Plus?

The Santander CS is just fine.

I would like to test the water first. So far I have switched only one of my TSB enhance accounts.


I had five Enhance and two Plus accounts. I intend to maintain the balance and funding arrangements for the Plus accounts. I see no point in closing the other 4 enhance and shall simply stop the SO funding and transfer the balance to Santander before Nov 04th.

Archi_Bald

anna42hmr wrote: »

May keep some money one of the enhance accounts and use as a feeder for the lloyds club monthly saver account that i opened a while back.

Don't you have any better than a 1.5% account as a feeder account?