Advice - shuffling money round accounts

Zola.

Ah, I am with you now Excellent, that is a clever idea.

I have a 123 current account with some savings in it (just under 10k), paying 3% a month.

I dont know if there are any lloyds branches near me - can you open accounts online? if so are they the best bank at the moment to split some money into?

I was told by my branch manager recently that having too many bank accounts is bad for your credit rating. If all the new accounts have no access to an overdraft facility does that negate the problem he was talking about?

Steve_xx

Zola. wrote: »

Ah, I am with you now Excellent, that is a clever idea.

I have a 123 current account with some savings in it (just under 10k), paying 3% a month.

I dont know if there are any lloyds branches near me - can you open accounts online? if so are they the best bank at the moment to split some money into?

I was told by my branch manager recently that having too many bank accounts is bad for your credit rating. If all the new accounts have no access to an overdraft facility does that negate the problem he was talking about?

OK well you are familiar with the Santander requirement then that you must deposit £500 a month into it and have two direct debits in order to get the 3% on your 10k. Always bear in mind that to get the full 3% with Santander that you need your balance to be 3k or more.

Forget about Lloyds branches. It matters not a jot whether or not there's one near you, unless you plan to go in there. Just open it online. You can also have a Regular Saver running alongside the Lloyds Club account and that pays 4% for a year on a deposit upto £400 a month. There are also the associated lifestyle benefits that come with the Lloyds Club account, ie six free cinema tickets per year, memebrship of the Gourmet Society or a monthly sub to a selection of magazines.

The TSB account is the star one at 5%. You could have two of these but they recently changed it so that you can only have one and one joint one I think.

As regards your credit rating. Yes opening a lot of accounts suddenly may cause your rating to be affected, but probably only in the short term. I say "may" because I'm not absolutely sure how you would be affected. Others on here will advise you about that better than I can. I think you are probably correct about it being more of a problem if you have overdraft facilities on them. But again, others on here will advise you in that point better than me.

I apply for accounts a lot and don't hit on any problems. But then again I don't buy things on credit so maybe that's why. Mind you I do use a credit card so I guess that counts!

ShootForTheMoon

Steve_xx wrote: »

Yes it is worth it. For instance if you had two TSB Classic Plus current accounts containing £2000 each , you can earn 5% interest on each account.

Let's call them TSB Account A and Account B.

In order to get the 5% you have to credit each of the accounts with £500 each month. So, what you do is you log in to your TSB accounts once each month and you transfer £500 from Account A to Account B. As soon as you've done that you transfer £500 from Account B back to Account A. Job done, you've satisfied the requirement from TSB and you will get your 5% interest for that month.

Now, you may also have a LLoyds Club Account with a balance of £5000. This account requires you to deposit £1500 each month in order to get the 4% interest that it pays on balances between 4 and £5000. You also need to have two direct debit set up on this particular account.

Let's call this Lloyds Club Account C.

To satisy the requirement for this LLoyds account you could log in to your TSB Accounts mentioned above and then transfer £1500 from TSB Account A to your LLoyds Club Account C. Now you'll have £6500 in the Lloyds Club Account C. That's no good because they only pay interest on balances upto £5000, so log in to the Lloyds Account C and transfer the £1500 back to TSB Account A.

Is that any clearer for you?

This is exactly where I am...
We've filled 2 TSB accounts and are now working on the Club Lloyds, which should take about 6 months...
Incidentally, has anyone worked out how much interest you would earn when all three of these accounts are full?? I've done my sums but think I've over-calculated?!

Shoot x

YorkshireBoy

ShootForTheMoon wrote: »

Incidentally, has anyone worked out how much interest you would earn when all three of these accounts are full?? I've done my sums but think I've over-calculated?!

Post up your figure(s), including calculations, and someone will tell you where you're going wrong...if you're going wrong of course.

Fruit_and_Nut_Case

ShootForTheMoon wrote: »

Incidentally, has anyone worked out how much interest you would earn when all three of these accounts are full?? I've done my sums but think I've over-calculated?!

It varies depending on the length of the month but you should get about £6.50 + £6.50 + £13.00 which comes to round about £26.00 by my reckoning.

coolpix

Do you now have to setup 2 Direct Debits?
I've looked at the terms and conditions and can't see it mentioned anymore. As this is what put me off before from applying?

If I do setup Lloyds, can I transfer money in and out the same day to qualify for interest?
Thanks
Gary

colsten

Steve_xx wrote: »

My apologies. I was confusing the Lloyds Club requirements with the old Lloyds Vantage requirement.


As you say, the Club Lloyds account requires no direct debit mandates, but the old Lloyds Vantage account now does require two direct debits in order to continue getting 1.5% interest on balances between 3 and 5k.


I'll amend my earlier posts to reflect this.

If you wish to earn any interest from the Club Loyds, it must have two monthly paying Direct Debits. Of course, you can choose not to have any DDs and not to receive any interest.
http://www.lloydsbank.com/current-accounts/club-lloyds.asp

colsten

coolpix wrote: »

Do you now have to setup 2 Direct Debits?
I've looked at the terms and conditions and can't see it mentioned anymore. As this is what put me off before from applying?

The Club Lloyds has always required 2 monthly paying DDs if you want to receive interest, and still does so. Setting up some special DDs for this purpose is easy to do. Please refer to the Club Lloyds thread.

http://www.lloydsbank.com/assets/media/pdfs/current-accounts/clublloyds_terms%20and%20conditions.pdf

coolpix wrote: »

If I do setup Lloyds, can I transfer money in and out the same day to qualify for interest?

the monthly minimum transfer does not affect your eligibility for interest. It only affects whether your monthly account fee gets waived or not. You can deposit and withdraw the monthly minimum payment on the same day / in the same hour / same minute.
For the avoidance of doubt, you will only receive interest on money that is in the account at the end of a day. This is not Lloyds specific, all interest paying accounts work like that.

bouicca21

http://www.lloydsbank.com/current-accounts/club-lloyds2.asp

It refers to the 'new' club lloyds account and I'm sure it wasn't there when I applied. Will be slightly peed off if I really do need to find 2 DDs.

Zola.

Steve_xx wrote: »

OK well you are familiar with the Santander requirement then that you must deposit £500 a month into it and have two direct debits in order to get the 3% on your 10k. Always bear in mind that to get the full 3% with Santander that you need your balance to be 3k or more.

Forget about Lloyds branches. It matters not a jot whether or not there's one near you, unless you plan to go in there. Just open it online. You can also have a Regular Saver running alongside the Lloyds Club account and that pays 4% for a year on a deposit upto £400 a month. There are also the associated lifestyle benefits that come with the Lloyds Club account, ie six free cinema tickets per year, memebrship of the Gourmet Society or a monthly sub to a selection of magazines.

The TSB account is the star one at 5%. You could have two of these but they recently changed it so that you can only have one and one joint one I think.

As regards your credit rating. Yes opening a lot of accounts suddenly may cause your rating to be affected, but probably only in the short term. I say "may" because I'm not absolutely sure how you would be affected. Others on here will advise you about that better than I can. I think you are probably correct about it being more of a problem if you have overdraft facilities on them. But again, others on here will advise you in that point better than me.

I apply for accounts a lot and don't hit on any problems. But then again I don't buy things on credit so maybe that's why. Mind you I do use a credit card so I guess that counts!

Thanks very much for your help!

I have just opened up a Classic Plus Account with TSB. I will await my info to be sent out. Then I will transfer 2k in and setup a standing order to pay in 500 and then straight back out to my main Santander account. From a quick calculation that will pay about 8 quid a month? I selected no overdraft facility also.

Is there one more account that I could open online now with a rate as close to that?