Current Accounts as Savings accounts

rach_smith2006

Hi

I am considering using the high interest current accounts as savings account. I see that they have minimum amounts that have to be deposited monthly. Can these deposits be made from another bank account that I have, with a different bank, or do they have to be your 'pay' from a company.

Thank you

Mat_Lock

From other banks accounts.

I'm starting slowly with a TSB Classic Plus account. Currently have £1500 in there. I set a SO for £500 from my Halifax current account (where my salary goes in to) and once it hits £2000 then I will set up an SO from the TSB account for £500 to go back to my Halifax current account. So that it stays at £2000 all the time. This will earn me the 5% interest (minus tax)

Once I have that working for me I will try and setup some more but I don't wan to do too much at moment due to a mortgage application pending.

RandyDoodle

I was speaking to a senior member of Lloyds TSB the other day about this very topic.

He said - 'Savings accounts arent what they used to be' he went on to say how youre almost better off keeping your money in a current account as there - 'isnt really any saving accounts out there with a decent enough interest rate at the moment'

Mat_Lock

Lloyds and TSB are no longer together

eskbanker

RandyDoodle wrote: »

I was speaking to a senior member of Lloyds TSB the other day about this very topic.

He said - 'Savings accounts arent what they used to be' he went on to say how youre almost better off keeping your money in a current account as there - 'isnt really any saving accounts out there with a decent enough interest rate at the moment'

Fortunately it isn't necessary to have contacts at banks to pick up on this sort of insight, a well-known consumer finance website and many contributors to its forum make the same point prominently at every available opportunity (omitting the word 'almost' from your quote)!

Eco_Miser

Mat_Lock wrote: »

I set a SO for £500 from my Halifax current account (where my salary goes in to) and once it hits £2000 then I will set up an SO from the TSB account for £500 to go back to my Halifax current account. So that it stays at £2000 all the time.

I recommend that the return SO should be for £506.50 or thereabouts to take care of the interest.

Mat_Lock

I agree it will be £500 + the interest per month but will see after end of this month.