Managing multiple 3 - 5% accounts

sjw64

I’ve set up a number of bank accounts that that pay 3-5% interest and I need to clarify a couple of things.

If there is a requirement for a minimum ‘pay in’ amount, is it okay for me to pay in from a different bank, automatically each month, then simply have this payment returned that day (or next). For example I have two Santander 123 acts that require £500 each month. Could I transfer this from my Club Lloyds automatically and vice versa – Lloyds require £1500 each month for me to get their 5% interest and have this sent back to Santander?


How many accounts can I have with each bank? I live with my wife and I’m thinking we each can have an account and a joint one? Use Santander as an example, can we have 3 x accounts with a potential 3% interest of £60k. Or is it per household?

Does anyone have a suggested method of servicing multi accounts? Is it best to sit down one night per month and manually transfer to ‘pay ins’, do people use spreadsheets etc.


Thanks

grumbler

sjw64 wrote: »

If there is a requirement for a minimum ‘pay in’ amount, is it okay for me to pay in from a different bank, automatically each month, then simply have this payment returned that day (or next). For example I have two Santander 123 acts that require £500 each month. Could I transfer this from my Club Lloyds automatically and vice versa – Lloyds require £1500 each month for me to get their 5% interest and have this sent back to Santander?

It's OK, but if you have accounts with more than 2 banks, IMO it's better to do this in 'chain'/'circle'.

How many accounts can I have with each bank?

This can depend on the bank.

I live with my wife and I’m thinking we each can have an account and a joint one? Use Santander as an example, can we have 3 x accounts with a potential 3% interest of £60k. Or is it per household?

http://www.santander.co.uk/uk/current-accounts/123-current-account

"You may only hold a maximum of two 1|2|3 Current Accounts, one in your own name and one in joint names."

This means two sole accounts and one joint for two of you.

Does anyone have a suggested method of servicing multi accounts? Is it best to sit down one night per month and manually transfer to ‘pay ins’, do people use spreadsheets etc.

Most people prefer SOs. I do this manually and do have a SS for all my card and online transactions.

Don't forget about the active DDs requirements.

Archi_Bald

sjw64 wrote: »

If there is a requirement for a minimum ‘pay in’ amount, is it okay for me to pay in from a different bank, automatically each month, then simply have this payment returned that day (or next).

yes

sjw64 wrote: »

How many accounts can I have with each bank?

they will tell you in their T&Cs how many of the same accounts you can have. E.g. 1 x sole 123 plus 1 x joint 123.

sjw64 wrote: »

I live with my wife and I’m thinking we each can have an account and a joint one? Use Santander as an example, can we have 3 x accounts with a potential 3% interest of £60k. Or is it per household?

yes for Santander, no there is no concept of a household when it comes to bank accounts, and you have to check the T&Cs of each bank.

sjw64 wrote: »

Does anyone have a suggested method of servicing multi accounts? Is it best to sit down one night per month and manually transfer to ‘pay ins’, do people use spreadsheets etc.

people use spreadsheets and other software to manage their finances. If you look round the forum, you will find that people with many current accounts use different methods to satisfy the minimum monthly deposits - some do it by SO, some do it manually, some do it by a combination of the two. It's not rocket science but notes (spreadsheet, MS Money, scrapbook etc etc) help with staying in control.

TheTracker

I always set up my transfers on a 28 days rather than 1 month SO. That way they'll always take place on the same weekday and avoid any end of the month weekend issues that might, but should not, take place. I have all the transfers across all banks take place on the same day.

I have one of the accounts act as a funnel for collecting the interest payments then a single interest payment comes into my operational account, rather than being flooded with many interest payments.

sjw64

Cheers Grumbler & Archie

Great advice thanks. Just to clarify with Santander 123

I have two accounts

SJW64
Mr & Mrs SJW64

So can Mrs SJW 64 have an account as well – this would be great if she could. Yes we live together, man/wife/etc etc

All DD’s are satisfied


Cheers TheTracker ...was thinking roughly the same

Archi_Bald

Currently, everyone can have one sole and one joint 123.

I.e. between 2 people, that is 3 123 accounts, as follows:

1 x person A sole
1 x person B sole
1 x person A and person B jointly

Don't rush into joint accounts without fully understanding what commitments come with joint accounts.

sjw64

Thanks Archi.

Person B Sole (Mrs SJW64) can now have her own act

I understand what you are joint acts.

YorkshireBoy

sjw64 wrote: »

Is it best to sit down one night per month and manually transfer to ‘pay ins’

Making your transfers at night is a recipe for disaster if you're moving money on the last working day of a calendar month or billing period, since not all banks close off at the same time. Better to do it through the day.

I currently make all my transfers manually on the second working day of the month (to coincide with receiving Lloyds, TSB, & BoS interest and Halifax Reward payments).

Santander, YB, Nationwide, & Tesco are usually also serviced at the same.

ericonabike

I recently set up two additional 123 accounts, to add to the joint one we'd had for a while. The purpose was to find a home for 60k+ that we had come into. It was very painless - I swapped four DDs from my main account with another bank [utilities and phone to get the cashback], set up a £500 SO into each from that account and set up SOs to pay the residue [£500 less the SOs] back into that account the next day. Have just received the first month's interest on the two 'zombie' accounts, which I'll be sweeping up and transferring elsewhere at regular intervals. My wife uses the joint account as her personal account so we regard the £20k as 'zero' and try not to let her go 'overdrawn'! Have to say I wouldn't bother doing this for the 'balance up to £5k, interest up to 3%' accounts that are around, but the 123 accounts are a different matter IMO.

colsten

ericonabike wrote: »

Have to say I wouldn't bother doing this for the 'balance up to £5k, interest up to 3%' accounts that are around, but the 123 accounts are a different matter IMO.

The other 3% accounts accommodate £21,000 between them, have very simple monthly deposit requirements and don't need DDs. Would you rather keep the £21,000 in a 1.5% savings account (assuming you can even find one that high now)? Assuming, of course, that you have maxed the 4 and 5% accounts already.

If you saw £250 lying on the pavement would you say you can't be bothered to bend down and pick them up?