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

YorkshireBoy

You keep talking about "the" TSB Plus account. But you have have 2 TSB Plus accounts...do you not?


People are suggesting not to use SOs to fund either of these - either internally or externally from NatWest - until you have at least £500 in each TSB account...yes?


When you have at least £500 in each TSB Plus account you can set up the SOs I suggested earlier today, ie from TSB1 to TSB2 and from TSB 2 to TSB1.


The only payment (by whatever means, SO or manual) from NatWest to TSB will then be fresh money from income, and so doesn't need sending back to NatWest at all...unless you're short of cash due to an unexpected bill etc. And on that point, if you're using internal SOs at TSB, or you still insist on using SOs from/to NatWest/TSB, you need to bear in mind that these SOs may need cancelling if you deplete the TSB funds substantially, ie to below £500, due to said unexpected bill.


Does that help clarify things?

lanceuppercut

YorkshireBoy wrote: »

You keep talking about "the" TSB Plus account. But you have have 2 TSB Plus accounts...do you not?


People are suggesting not to use SOs to fund either of these - either internally or externally from NatWest - until you have at least £500 in each TSB account...yes?


When you have at least £500 in each TSB Plus account you can set up the SOs I suggested earlier today, ie from TSB1 to TSB2 and from TSB 2 to TSB1.


The only payment (by whatever means, SO or manual) from NatWest to TSB will then be fresh money from income, and so doesn't need sending back to NatWest at all...unless you're short of cash due to an unexpected bill etc. And on that point, if you're using internal SOs at TSB, or you still insist on using SOs from/to NatWest/TSB, you need to bear in mind that these SOs may need cancelling if you deplete the TSB funds substantially, ie to below £500, due to said unexpected bill.


Does that help clarify things?

Okay that does clarify, I was under the impression that the £500 had to come from an outside source but if TSB 1 to 2 and vice versa works then that's fine.

I will manually fund the accounts and set up the SO between the two TSB accounts. Would the TSB internal transfer work or does it need to be a SO?

YorkshireBoy

lanceuppercut wrote: »

Okay that does clarify

Bingo!

I was under the impression that the £500 had to come from an outside source but if TSB 1 to 2 and vice versa works then that's fine.

You were told this morning (by at least 2 posters) that internal SOs were fine (and you could have verified the information was correct by checking your account T&Cs).

I will manually fund the accounts and set up the SO between the two TSB accounts.

That's good.

Would the TSB internal transfer work or does it need to be a SO?

Either will work but, as I said earlier, you retain more control by making them manually...at least until you get your feet under the table and/or attain decent balances. The biggest issue will be if you withdraw funds for a car repair or to pay for a holiday for example, and you forget to cancel/postpone/adjust the SOs.

lanceuppercut

I did say a few times that the SO was only to keep the £500 transfer requirement in check and was never a way to move money across, so it seems we both didn't read things properly

YorkshireBoy

lanceuppercut wrote: »

I did say a few times that the SO was only to keep the £500 transfer requirement in check and was never a way to move money across, so it seems we both didn't read things properly

But we said right from the off that that was best left internally done. Then you threw a spanner in the works later by saying you couldn't fill them both immediately. Then you were prepared to lose significant chunks of interest, by delaying payments unnecessarily...despite your stated objective being to maximise said interest.


I'm happy my reading skills are fine thanks.


But I'm glad you now understand what you're doing. It's been a little frustrating, but I just didn't want you to mess up. Happy saving!

lanceuppercut

The only reason I was willing to delay payment was in response to the possible problem of payment landing on a weekend or a bank holiday as was suggested in this thread.

rainbowdust33

YorkshireBoy, thanks for the advice. I also didn't know that you can transfer from TSB1 to TSB2 accounts.

On payday this month I will have over £1000 in TSB1 account. So if I transfer £500 to TSB2, then set up a standing order for the 1st of the month, to transfer £500 to TSB1 to TSB2 and vice versa, I'll be sorted?? And obviously still continue to add more to the accounts as I'm saving, to maximise interest.

Thanks

inspireme247

rainbowdust33 wrote: »

YorkshireBoy, thanks for the advice. I also didn't know that you can transfer from TSB1 to TSB2 accounts.

On payday this month I will have over £1000 in TSB1 account. So if I transfer £500 to TSB2, then set up a standing order for the 1st of the month, to transfer £500 to TSB1 to TSB2 and vice versa, I'll be sorted?? And obviously still continue to add more to the accounts as I'm saving, to maximise interest.

Thanks

Yes, it's called internal transfer.

YorkshireBoy

rainbowdust33 wrote: »

YorkshireBoy, thanks for the advice. I also didn't know that you can transfer from TSB1 to TSB2 accounts.

You can at the moment. Just be sure to read any notice of variation to your T&Cs (which will, or should, be paperless of course!) in case they change things.

matttye

YorkshireBoy wrote: »

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.

And if you can only fill one account then presumably this would work:

£500 from elsewhere to TSB
£506.50 from TSB to elsewhere.

Both on the same day.