Moving money standing orders

Yam

I have recently opened two current accounts to take advantage of the interest rates

Halifax rewards and club Lloyds. I have also requested a TSB account but I've heard nothing back from them.

Halifax will be the account I will use to pay my wages into and to take direct debits out of since I got paid £100 for switching to them. Each month I want to pay £1500 into the lloyds account (or else there is a £5 charge) but take it out the next day and put it into another account to build some savings as you only earn interest upto 5k.

This would be fine by using standing orders but if it falls on a weekend then potentially if the lloyds account sends the money before halifax then the Lloyds account will have 3500 in there for a few hours, there is a reduced interest rate for amounts under 4k and also if Im fluctuating between 3500 and 5000 I am worried I won't get the full interest I should get from 5k.

When weekends come up I could intervene but sometimes I am working away with no access to the internet.

Maybe I am wrong about the worries I have with the interest, can someone explain it to me or suggest a solution that will allow me to maximise my income.

colsten

Lloyds and Halifax are using the exact same systems so the likelihood that SOs scheduled for the same day (or consecutive days) won't be sent on the same/consecutive day by both is remote. However, things could in theory go wrong, so checking that the SOs have been made as expected might be a good idea.

I do note you would be happy to leave £1,500 in your Club Lloyds for a day, i.e. not get any interest on the £1,500 for a day if your Club Lloyds is full (as your post suggests it is). So you are happy to do this 12 times a year by design but you worry about losing 1 or 2 days interest due to a very unlikely event?

Having said this, for one day we are talking minute amounts of interest, so really not worth worrying about.

If you want a solution you have total(?) control over, do your transfers manually once a month. You have some 20 "safe" days each month to do it in, and it would take less than 2 minutes.

badger09

Yam wrote: »

I have recently opened two current accounts to take advantage of the interest rates

Halifax rewards and club Lloyds. I have also requested a TSB account but I've heard nothing back from them.

Halifax will be the account I will use to pay my wages into and to take direct debits out of since I got paid £100 for switching to them. Each month I want to pay £1500 into the lloyds account (or else there is a £5 charge) but take it out the next day and put it into another account to build some savings as you only earn interest upto 5k.

This would be fine by using standing orders but if it falls on a weekend then potentially if the lloyds account sends the money before halifax then the Lloyds account will have 3500 in there for a few hours, there is a reduced interest rate for amounts under 4k and also if Im fluctuating between 3500 and 5000 I am worried I won't get the full interest I should get from 5k.

When weekends come up I could intervene but sometimes I am working away with no access to the internet.

Maybe I am wrong about the worries I have with the interest, can someone explain it to me or suggest a solution that will allow me to maximise my income.

Unless you also have 2 different direct debits paying monthly from your Club Lloyds account, you won't get any interest, regardless of the balance!

Snowbelle

Following on from this I have 2 x TSB with a SO set up for £500 between the 2 accounts, if I were to include Santander 123 into this circle are there likely to be any problems with the SO not being sent/arriving on the same day from any of these accounts?

Steve_xx

Snowbelle wrote: »

Following on from this I have 2 x TSB with a SO set up for £500 between the 2 accounts, if I were to include Santander 123 into this circle are there likely to be any problems with the SO not being sent/arriving on the same day from any of these accounts?

Could be a bit of a problem if the date of the standing orders happened to fall on a weekend or bank holiday I guess.

badger09

Snowbelle wrote: »

Following on from this I have 2 x TSB with a SO set up for £500 between the 2 accounts, if I were to include Santander 123 into this circle are there likely to be any problems with the SO not being sent/arriving on the same day from any of these accounts?

The only problem would be if you were running any of the accounts with a balance below £500.

YorkshireBoy

Snowbelle wrote: »

Following on from this I have 2 x TSB with a SO set up for £500 between the 2 accounts, if I were to include Santander 123 into this circle are there likely to be any problems with the SO not being sent/arriving on the same day from any of these accounts?

Of course there's always the chance of a technical failure with one of them.

However, and presuming you've always more than £500 in the TSB account that feeds Santander, the 'cost' of a failure at Santander, for example, is £500 x (0.0489 - 0.0296) / 365 x 0.8 = 2p per day! Hardly worth worrying about.

But you should not operate a 'set up and forget' approach, as a failure to credit in a particular month means no interest at all...and if you're maxed out at Santander that'd be costly!

Snowbelle

Thanks for all your replies.