TSB Classic Plus

Lindy1

Great that you get 5% AER on the first £2,000 but the snag is, you have to keep putting in £500 every month and anything above £2,000 attracts no interest at all. I would rather make my money work harder elsewhere - in one year that means a minimum of £4,000 is lying in an account not working for me. So in a year, the total interest is £100. On a minimum of £6,000 saved. Working out at approx 1.67% AER. Ok, so not to be sniffed at in the current climate, I suppose! I may do it as an extra now that I have thunk it through..........!!
:cool:

Archi_Bald

You don't have to leave any money over £2,000 in the account. Your monthly deposit can go in and out - or out and in - in seconds. It's a current account, after all.

Midland45

Lindy1 wrote: »

Great that you get 5% AER on the first £2,000 but the snag is, you have to keep putting in £500 every month and anything above £2,000 attracts no interest at all. I would rather make my money work harder elsewhere - in one year that means a minimum of £4,000 is lying in an account not working for me. So in a year, the total interest is £100. On a minimum of £6,000 saved. Working out at approx 1.67% AER. Ok, so not to be sniffed at in the current climate, I suppose! I may do it as an extra now that I have thunk it through..........!!
:cool:

You need to think this through a little more, as nowhere in the T&Cs does it say you have to leave the £500 in your account. In fact most people who applied when you could have 2 sole accounts, just have standing orders to move £500 from A/C 1 to A/C 2 and vice versa each month. Then simply cream off the interest to leave exactly £2000 balance each month.

robotrobo

hi lindy.
We have 5 tsb accounts between us , there is only 1 £500 flitting inbetween the 5 accounts at any one time ,

eg,
£500 from external account to number 1 account , next day it goes to number two then number three & so on untill its completed the cycle & then it goes back into the donor account , ready for the cycle the next month , so you are only ever useing the same £ 500 to complete this task. which you set up online to automatically achieve with standing orders

Zanderman

Lindy1 wrote: »

now that I have thunk it through..........!!
:cool:

You need to thunk this through a lot more!!

Lindy1

Yep, got it now - thanks for all of your wisdom on this - will open one forthwith and set up my standing orders......in AND out!!!
Many thanks all.
Lindy
:j

durhamviper

robotrobo wrote: »

hi lindy.
We have 5 tsb accounts between us , there is only 1 £500 flitting inbetween the 5 accounts at any one time ,

eg,
£500 from external account to number 1 account , next day it goes to number two then number three & so on untill its completed the cycle & then it goes back into the donor account , ready for the cycle the next month , so you are only ever useing the same £ 500 to complete this task. which you set up online to automatically achieve with standing orders

Why bother with an external account and separate days - just set up standing orders to cycle £500 between the 5 accounts on the same day each month