Guarantee one standing order occurs before another

w00519772

I have setup a savings account with TSB (5% up to 2000). I also have a HSBC current account; Santander current account (3% interest rate up to 20000).

My salary is paid on the 18th into my HSBC account. I plan to setup standing orders for the following:

1) transfer 500 to my TSB account on the 19th
2) Transfer 500 to my Santander account on the 20th.

This means I lose 3% interest between 18th and 19th because I am already maxed out on the TSB account. I realise that this only equates to 4p per month but I have found banks to be mercenery in the past so I am now the same.

Is there any way to setup automatic transfers on the same day where it is guaranteed that the transfer in is always before the transfer out.

YorkshireBoy

w00519772 wrote: »

Is there any way to setup automatic transfers on the same day where it is guaranteed that the transfer in is always before the transfer out.

No, but then again it doesn't really matter which occurs first does it?

Just set them up for the same day. The only time you'll ever suffer is if one of them has a problem with processing SOs...which will be a very rare occurrence indeed.

EDIT: If you're maxed out at TSB, you'll need (or want) to be creaming off the £6.xx per month interest. If you log in to do this (rather than reduce the balance or adapt the outbound SO to include the interest) you may as well make manual transfers, rather than use SOs?

w00519772

I see. Can I just confirm that you are suggesting doing this manually each month? Surely the interest will be the same each month as the balance would always be 2k. Therefore I just setup a SO for 2006.xy?

YorkshireBoy

w00519772 wrote: »

I see. Can I just confirm that you are suggesting doing this manually each month?

It's your decision. I'm just saying why automate when you still have 'some' manual involvement (with the interest)?

There are pros and cons for both systems. I've messed around with SOs in the past, but only for those accounts that can be internally funded (ie TSB, BoS Vantage, and the old Lloyds Vantage when I had them), but I'm more or less back to manual payments again now.

I've always made manual payments to accounts requiring external funding (ie Santander, Nationwide, and Yorkshire Bank).

Others on here will swear by SOs.

You just have to operate in the way that best suits you.

YorkshireBoy

w00519772 wrote: »

Surely the interest will be the same each month as the balance would always be 2k. Therefore I just setup a SO for 2006.xy?

How can the interest be the same each month? Both Santander and TSB operate with billing periods, not calendar months. With TSB, for example, it's possible for the number of days in the billing period to range from 28 to 34. Even if they did operate calendar months, not all months have the same number of days.

If you wanted to plump for an average, then use 30 days and set up the TSB to Santander SO for:

(£2,000 x 4.89% / 365 x 30 x 0.8 (if you're a tax payer)) + £500 = £506.43