SO at end of month?

anoncol

What happens to standing orders which are made for days of the month that don't exist such as 30th etc?

I'm trying to maximise interest after pay day.

PeacefulWaters

Some banks won't let you set them up for 29th-31st.

Others will roll them into the following month.

Why don't you just do 1st of the month?

anoncol

That's what I have done, just wondered if another 2 days interest could be made.

Archi_Bald

anoncol wrote: »

That's what I have done, just wondered if another 2 days interest could be made.

How many pence extra [per year] would you potentially make by risking not to meet your monthly pre-reqs? More importantly, how would SOs made in the middle of a month (calendar or account month) reduce the maximum amount of interest you can earn?

anoncol

There are no monthly pre-reqs. Its to go from our salary account into a higher interest account such as TSB 5% as a holding account to go into 1st direct current account ready to be taken into 6% regular saver.

Its just a speculative question.

torbrex

In my experience, SO's tend to be flexible, 3 days either way depending on the day of the week.
I have know one due on the 28th to come off on the 29th if due date is a Sunday and also to come off on the 26th if due date is on the Sunday.

Archi_Bald

anoncol wrote: »

There are no monthly pre-reqs. Its to go from our salary account into a higher interest account such as TSB 5% as a holding account to go into 1st direct current account ready to be taken into 6% regular saver.

Its just a speculative question.

Very difficult to discuss this on a theoretical basis (i.e. without knowing exactly the amounts, dates and accounts involved) but I maintain it is very likely pennies a year you might be missing out on, if anything at all.

However, based on your new information, one immediate question I would ask is why your salary (/salaries) doesn't go into TSB accounts to start with.

anoncol

Our income goes into Santander123, where all bills come out of apart from a couple other DDs for account reqs.

This cash could just stay in there but it could earn as you say 2p in the TSB.

I use GnuCash to project cashflow, so see cash in an account without earning as much interest that it could hurts .

jonesMUFCforever

OP you need to be very careful where it is imperative that a standing order must be made in every calendar month for accounts such as a monthly saver.
You could easily fall into the trap of a payment falling on a weekend, bank holiday etc pushing it to first day of following month.
The pennies you have saved doing this could cost you a year's interest on an account such as a monthly saver where you have to make 12 calendar month payments.

anoncol

The TSB accounts cross fund themselves.

agrinnall

torbrex wrote: »

In my experience, SO's tend to be flexible, 3 days either way depending on the day of the week.
I have know one due on the 28th to come off on the 29th if due date is a Sunday and also to come off on the 26th if due date is on the Sunday.

I don't think this is quite right any more. Now that SOs are processed as part of the Faster Payments system it is my belief that no SO can be processed through FPS any earlier than the specified date; if the date does not exist for that month (or if it's a non-business day) it should always be taken on the next business day. It is possible that a bank's internal process may earmark funds in advance but the money won't leave the account then.