Current account with income of around £400 a month in... suggestions?

Hi there

Can anyone suggest what would be the best current account with a monthly income of around £400? I want to set up a separate account to deal with my rental property finances.

Thank you.
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Comments

  • For such low levels, I think the answer is always going to be TSB Plus.


    Then again, if you also have bills to pay for the rental property (rather than the tenant?), maybe Santander 1-2-3 might be an option for the cashback?
  • smiler247
    smiler247 Posts: 84 Forumite
    edited 27 September 2014 at 11:25PM
    Thank you for your quick reply YorkshireBoy.
    The only bill I will need to pay will be council tax as the utilities are on prepayment meters.
    I can always transfer extra income in to make up minimum payment requirements - am I right in thinking that I can transfer it back out as long as it has gone in?
    I am just thinking it will help me keep a better track of everything rather than put it all through my personal current account where my salary and household bills for my own property comes out of.
  • smiler247 wrote: »
    I can always transfer extra income in to make up minimum payment requirements - am I right in thinking that I can transfer it back out as long as it has gone in?
    Yes you are.
    I am just thinking it will help me keep a better track of everything rather than put it all through my personal current account where my salary and household bills for my own property comes out of.
    I agree. Just out of interest, what sort of balance will you be keeping in the account (ie is there a mortgage payment to make, insurance to pay, etc), and by how much will it be increasing each month?
  • I agree. Tsb, min 500, set up Dd to top up tp 500 each mnth, the bavk out again if required. Interest 5%.
  • No mortgage but probably insurance. I am new to letting property so as yet am unsure of the exact figures. I would hope to keep in at least half of the income in the account each month.

    Regarding my own account, I have had an account with HSBC for years - there is no interest paid on it. There is a monthly income of £1900; sorry to be cheeky but do you have any suggestions for moving that one to get a better deal?

    Thank you very much for your time.
  • set up Dd to top up tp 500 each mnth
    I think you mean standing order?
  • If there was a month that I didn't pay £500 into the TSB account, would it just mean that I wouldn't have the interest for that month? Sorry for so many questions :/
  • smiler247 wrote: »
    No mortgage but probably insurance. I am new to letting property so as yet am unsure of the exact figures. I would hope to keep in at least half of the income in the account each month.
    Bear in mind you can hold two of these accounts (so 5% AER on up to £4K)...at the moment! It may be a while before you can fill a second account (with a balance increasing by £200 a month), but you may wish to open it now whilst you can.
    Regarding my own account, I have had an account with HSBC for years - there is no interest paid on it. There is a monthly income of £1900; sorry to be cheeky but do you have any suggestions for moving that one to get a better deal?
    Depends what you want from it? In terms of in-credit interest, you could look at TSB or Nationwide (both pay 5% AER, but the latter only for the first 12 months), or Lloyds Club (4% AER if the balance is £4-5K). Lots of the accounts have tiered rates depending on balance, ie Santander, Lloyds Club, and BoS Vantage...so it really does warrant looking at the best bank account article on the main site and seeing which best meets your personal requirements/situation.
  • smiler247 wrote: »
    If there was a month that I didn't pay £500 into the TSB account, would it just mean that I wouldn't have the interest for that month?
    Short answer: Yes.


    But there would never be such a month, because if your tenant didn't pay, or you had a void period, you'd simply transfer £500 out and back in again. And if the balance was <£500 you'd send £500 from your HSBC account on payday and bounce it straight back again.
  • Thank you - I don't have a tenant at the moment but want to set the account up ready.
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