TSB Classic Plus questions

freezspirit

Ok I have a couple of questions on this accounts, I've been to two different branches and was told different information so can anyone help on the following:


I have 2 accounts can I transfer the £500 between them or does the £500 have to come from a non-TSB account? (1 branch said £500 must come from a non-TSB account the other branch said computer system not so sophisticated so can't tell where the £500 has come from so can transfer from another TSB account)


If you keep £2000 in the account how much interest should I expect every month? (I've tried online interest calculators but the numbers are around £8 but for Dec I only got £5.76 and when I had £1000 in Nov, it was £3.75).

Ed-1

freezspirit wrote: »

Ok I have a couple of questions on this accounts, I've been to two different branches and was told different information so can anyone help on the following:


I have 2 accounts can I transfer the £500 between them or does the £500 have to come from a non-TSB account? (1 branch said £500 must come from a non-TSB account the other branch said computer system not so sophisticated so can't tell where the £500 has come from so can transfer from another TSB account)


If you keep £2000 in the account how much interest should I expect every month? (I've tried online interest calculators but the numbers are around £8 but for Dec I only got £5.76 and when I had £1000 in Nov, it was £3.75).

The important thing is what the terms and conditions of the account say. If you read them you'll see that they do not specify where the £500 has to come from, so it can come from another TSB account. The systems are built to enforce the terms and conditions.

Interest is calculated daily at a gross rate (non-taxpayers) of 4.89% and a net rate of 3.91%. It is paid at the end of the monthly billing period which runs from the second working day of a month to the first working day of the next month (so interest will be paid at the end of the first working day of a calendar month).

So if you had 31 days in a monthly billing period and kept £2000 in the account at the end of each day, you'd get gross interest of:

[(2000x0.0489)/365] x 31 = £8.31 and a net rate of this times 0.8 = £6.65.

MME_2

The £500 can definitely come from any of your other existing TSB accounts.

The interest is accrued daily based on your balance. However, remember that is Net rate is 3.91% and that some months have more days than others. If you had exactly £2000 every day during December and you are a tax payer you should expect around ~£6.40 in interest.

freezspirit

I get my interest paid as gross. Going over the statement it appears when I was setting up my First Direct account the £1000 was delayed going back into my account so that's why Dec interest was low. I should expect on average to get more than £6/month.


Wish I had done this sooner as my savings last year made me £22 profit for the whole year.