Direct debits and current account

Jams91

Hi

I have about £9k to save and have opened a few current accounts that are high interest.

Club Lloyds require me to pay in £1500 a month and have 2 DD out a month. The former is simply a case of me setting up standing orders between accounts, but how can I get around the DD loophole please?

My Halifax account also has a requirement for 2 DD.

Is it as simple as finding a DD online that will take 1 penny a month out my account? Thanks

colsten

There are gazillions of threads on this forum talking about DDs - a great summary is here

eskbanker

colsten wrote: »

There are gazillions of threads on this forum talking about DDs - a great summary is here

gazillion
n. A large number of once brilliant but now somewhat troubled maverick Geordie footballers.

YorkshireBoy

Jams91 wrote: »

I have about £9k to save and have opened a few current accounts that are high interest.

Presumably you've gone for 2 x TSB Plus and a Nationwide FlexDirect, as well as the Club Lloyds, and are spreading "about" £5K around the first 3 and the remaining £4K in Club Lloyds?

Jams91

colsten wrote: »

There are gazillions of threads on this forum talking about DDs

Thanks

From reading those threads I just need to set up a DD from my Pay Pal account for something modest (call it £1 a month) and then I will set up another DD from account X out of account Y and vice versa.

Jams91

YorkshireBoy wrote: »

Presumably you've gone for 2 x TSB Plus and a Nationwide FlexDirect, as well as the Club Lloyds, and are spreading "about" £5K around the first 3 and the remaining £4K in Club Lloyds?

Yes I have. Just not the Nationwide product but a Halifax account that gives me £100 sign up and £5 a month interest.

£5k in club lloyds and £4k spread between the 2 TSB accounts with some tiny amount in Halifax is my plan

YorkshireBoy

Jams91 wrote: »

Yes I have. Just not the Nationwide product but a Halifax account that gives me £100 sign up and £5 a month interest.

£5k in club lloyds and £4k spread between the 2 TSB accounts with some tiny amount in Halifax is my plan

You'd get a better return, and 'future-proof' (to a degree), by getting the FlexDirect as well and losing £1K from Club Lloyds. I suppose it depends on how quickly you can muster another £2.5K from income?


Plus, if you max out the TSB & Lloyds accounts you won't get the advertised AERs...only 4.89% and 3.93% respectively.

Jams91

YorkshireBoy wrote: »

You'd get a better return, and 'future-proof' (to a degree), by getting the FlexDirect as well and losing £1K from Club Lloyds. I suppose it depends on how quickly you can muster another £2.5K from income?


Plus, if you max out the TSB & Lloyds accounts you won't get the advertised AERs...only 4.89% and 3.93% respectively.

Cheers for that. Looks like a great account, and no DD requirement either.

Pay day in a few days, I'll open a Flexi account with £2.5k next week then !

Why do you say future proof?

YorkshireBoy

Jams91 wrote: »

Why do you say future proof?

You have £9K now, which fills the accounts you've already opened (2 x £2K plus 1 x £5K).

Where would you put new money (saved from income) if you didn't open another account now? May as well make 4-5% on it! But do as I say...take out £1K of the Lloyds cash (you'll still get 4% AER on the remaining) and spread it around the 5% accounts. Then, after filling the 5% accounts (with another £1.5K), replenish Lloyds account back to £5K.

ceredigion

Jams91 wrote: »

Thanks

From reading those threads I just need to set up a DD from my Pay Pal account for something modest (call it £1 a month) and then I will set up another DD from account X out of account Y and vice versa.

Think you are confusing your direct debits and standing orders. If so you may need to revisit your proposal .

Jams91

ceredigion wrote: »

Think you are confusing your direct debits and standing orders. If so you may need to revisit your proposal .

I read on here that you can set up a DD from any account to a Tesco savings account. Can you only do that with some bank accounts and not others?