Annoyingly bespoke situation

nugby

Hey guys, paying close attention to the advice on MSE today and've both opened a TSB Classic Plus and coverted the Lloyds Vantage account opened when I first arrived up to the Club Lloyds Current Account.

But I figured while I'm in an unusual situation, I'd see if there were any other tweaks you'd suggest -

I'm going to earn £2,300 a month, and until at least July, potentially have an extra £2,800-£3,500 in there for 10 days between my work paying expenses and my Corporate Gold Amex stealing those funds away via Direct Debit.

Erego, I'm going to use the Lloyds account as my every-day account without too much cash in there, and the TSB account for saving and to hit if I want to head on Vacation or the like. I'll open a second TSB account in a month or so. Every now and again, I will drain one or two TSB accounts to transfer money back into additional payments against my mortgage in Australia.

I also pay a lump sum for my spot in the sharehouse, so Satnader's Cashback opportunities are useless to me.

Effectively, am I making the best use of all this, especially when there is so much money coming into my account each month?

SuperHan

It makes sense to leave £4k in the Lloyds account to make sure that you're hitting the 4% interest there, then put the surplus to that (and especially the surplus to £5k) in to the TSB.

Obviously max out the TSBs first as they pay higher rates, but you might need to jiggle it around to make sure you get the £4k in the Lloyds after a couple of months.

jonesMUFCforever

It makes more sense to put in £4k in the Lloyds club account as it gets 4% and open a monthly saver up to £400 per month to get another 4%

masonic

jonesMUFCforever wrote: »

It makes more sense to put in £4k in the Lloyds club account as it gets 4% and open a monthly saver up to £400 per month to get another 4%

But the regular saver won't generate as much interest on £400 per month up to £4,800 as two TSB accounts would generate on £400 per month up to £4,000. Also, I'm not sure the terms of the regular saver would fit in with the OP's desire to periodically drain the account for mortgage overpayments and holidays etc.

The main thing to do is ensure that when the total balance of cash is more than about £5k, £4k of that money is in the Lloyds club, but when the balance is below this, more interest will be obtained by maxing out two TSB accounts.

nugby

Glad you had the second Paragraph, SuperHan, yes, that's what I'm thinking. I should have >£4,000 in there for at least a while each month.

Jones, I think Masonic has suummed up my situation perfectly re the mortgage. I probably wouldn't get to the kind of balance to warrant the Lloyds Saver.

So no other accounts anyone knows of where >£5,000 going in each month will entitle me to ridiculous money? E.g. a 'Premium' Customer account or the like?

colsten

nugby wrote: »

So no other accounts anyone knows of where >£5,000 going in each month will entitle me to ridiculous money? E.g. a 'Premium' Customer account or the like?

Banks don't need savers' money at present, and the only 'premium' you can get for depositing certain amounts of money are waivers of monthly account charges, and perhaps the standard interest on offer.

The interest paying accounts are available to everybody (subject to credit checks), nothing special for anybody. http://www.moneysavingexpert.com/savings/savings-loophole

nugby

Thanks for the 5% savings link, colsten, I'd missed that one. It certainly emphasies that these accounts are somewhat loss-leaders, so I can undersrand why they'd be the best I'm likely to find!

colsten

BTW, ignore that bit in the link I posted earlier

Some of them require you to set up standing orders and direct debits (and, no, you can't usually just pay these to another of your bank accounts) which makes life difficult.

Nothing difficult - Standing Orders are very easy (e.g. shuttle money between accounts on same day), and the DD requirements are easily solved with a couple of Tesco savings accounts.