What's the best way to save, ISA or 5% interest account?

mozzy10

lanceuppercut wrote: »

So you managed to get a 2nd single account? Interesting, as the wording suggests it needs to be a joint account..

If you want a second account just go to their website (make sure you're not logged in) and apply for one.
Fill in all the details as if it was a new account.
Make sure your name/address etc are identical to your 1st account.

I initially thought I would end up with 2 log ins for the 2 accounts but they both appear under my original login which is convenient.

Let us know how you get on...

lanceuppercut

mozzy10 wrote: »

If you want a second account just go to their website (make sure you're not logged in) and apply for one.
Fill in all the details as if it was a new account.
Make sure your name/address etc are identical to your 1st account.

I initially thought I would end up with 2 log ins for the 2 accounts but they both appear under my original login which is convenient.

Let us know how you get on...

Oh that's good. Does it matter if I set my original one up over the internet?

inspireme247

lanceuppercut wrote: »

Oh that's good. Does it matter if I set my original one up over the internet?

I set my first account up via Internet. Make sure you are logged out first then set up again.

lanceuppercut

inspireme247 wrote: »

I set my first account up via Internet. Make sure you are logged out first then set up again.

Huh, that was easier than expected. 2nd account opened and added to my online banking login in minutes!

Edit: Okay so need to get my head around this and how to make this work with 2 TSB accounts and moving money around via SO for the interest to "count" --this is assuming I have the full £2k in both TSB accounts:

Payday: Move £500 in TSB 1 from Natwest (main account)
Payday +1: Move that £500 from TSB 1 into TSB 2
Payday +2: Move £500 from TSB 2 back to Natwest

Or do I have to shuffle the £500 from the first TSB account back to my Natwest account to then go out to the second TSB account?

bolzano

TSB funding can be internal.
I.e. just send 500 from TSB 1 to TSB 2 and 500 from TSB2 to TSB 1 on the same day - job done.

YorkshireBoy

lanceuppercut wrote: »

Okay so need to get my head around this and how to make this work with 2 TSB accounts and moving money around via SO for the interest to "count" --this is assuming I have the full £2k in both TSB accounts:

Payday: Move £500 in TSB 1 from Natwest (main account)
Payday +1: Move that £500 from TSB 1 into TSB 2
Payday +2: Move £500 from TSB 2 back to Natwest

Or do I have to shuffle the £500 from the first TSB account back to my Natwest account to then go out to the second TSB account?

Far simpler way!...

£500 from TSB1 to TSB2
£506.50 from TSB2 to TSB1
£13.00 from TSB1 to another account elsewhere.

Set up all on the same day (mine' the 3rd of the month)

£6.50 is the average interest per month (after BR tax deducted), so your balance will fluctuate a few pence either side of £2K per account.

lanceuppercut

Do I need to leave the money in there for a day or can it go out again?

I had set it up so the money is in the TSB 1 account for 2 days before transferring it out back to Natwest on the basis that if the day falls on a weekend then I'm covered.

I wanted to ensure the account has £2k in there at all times and for 2 days a month, it will have £2500 which then drops back to £2k.

Do I need to do that or do all TSB care about is that £500 has gone in, and don't care that it goes straight back out?

I was under the impression that the interest is based on the amount in the account for that month, so if it dipped to £1500 for a day, that would affect the interest, yes?

If I set up over 3 days, I can control the order that the money goes into each account, I'm now unsure if I need that spare day in between.

For example what if the dates fall like this:
(Friday) Payday: Move £500 in TSB 1 from Natwest
(Saturday) Payday +1: Move that £500 from TSB 1 into TSB 2
(Sunday) Payday +2: Move £500 from TSB 2 back to Natwest

Will the Sunday SO get moved back to Friday or a day after on Monday? I'm worried that if it gets moved back, then that will affect the interest as it will have dropped down to £1500.

Am I explaining it right?

YorkshireBoy

lanceuppercut wrote: »

Am I explaining it right?

You're making it far more complicated than it needs to be.


Set it up as per my post #17 above (the one you haven't read otherwise you wouldn't have made this post!), and if it doesn't work (as at the time of posting) I'll give you the interest myself!

lanceuppercut

YorkshireBoy wrote: »

You're making it far more complicated than it needs to be.


Set it up as per my post #17 above (the one you haven't read otherwise you wouldn't have made this post!), and if it doesn't work (as at the time of posting) I'll give you the interest myself!

Okay a bit of background will help explain my situation. If I had £2k in both TSB accounts and was able to keep a buffer of £500 for the SO instruction then yes my questions are irrelevant but until then..

My payday seems to be on the 24th of each month (except when it falls on a weekend or Sunday) in which they seem to move it forward so it gets paid on a Friday.

So I had set up the transfer merry go round to start on the 26th, to give myself the gap incase it moves it to a Monday, to be safe.

I just didn't want the automated Natwest to TSB 1 to put me in overdraft as I'm cutting it close to leaving a £100 buffer in my account as I can live with for the month after taking all expenses into account, whilst I get these 2 TSB accounts as close to the £2k limit.

I know I'd get that original £500 back from TSB 2, but don't want to go overdrawn for the few days whilst it's doing that.

YorkshireBoy

lanceuppercut wrote: »

...<snip>...

Until such time as you have and can maintain at least £500 in each, you should avoid SOs altogether.


Instead, make your payments manually once per (calendar) month on payday or shortly after.