Maximising interest and cashback - TSB Account

Thinking of opening one of these purely for interest and cashback but wondering how all of you manage your balance to maximise these.

Do you...

a) Top up to £2100 each month and spend the £100 cashback? I like this idea, as while I'm losing a little bit of interest on the £100, I can use the balance as a gauge to know how much of the £100 contactless I've spent...

b) Top up the account as you spend to keep it as close to £2000 as possible? - Seems like a bit more hard work and would need me to track the amount I've spent on contactless elsewhere.

c) something else?

I am aware of the £500 deposit requirement, and can take care of this aspect separately, but just wondering the best approach to maximising earnings on the account without creating too much work...

Comments

  • Consumerist
    Consumerist Posts: 6,310
    Name Dropper First Post First Anniversary
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    You're talking about a difference of coppers each month in the interest payment. The important things is to make sure you get your £100 spend in. At 5%+ per month the cash-back is worth the equivalent of 60%+ per annum.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • SeduLOUs
    SeduLOUs Posts: 2,171 Forumite
    edited 3 October 2015 at 11:49AM
    I know I'm talking about pennies, but pennies make pounds!

    If I logged on daily to check balance, and send a faster payment to get balance to £2k dead that takes probably a total of a minute a day. I already check my accounts almost daily anyway to track all of my spending in YNAB, so those extra 'pennies' don't practically take me any additional time to earn.

    Re cashback, ideally I want to spend 'exactly' £100 (practically it will be a few quid out), and once that's done go back to spending on my other cashback cards. Does anyone know if the £100 spend is based on the transaction dates, or the cleared dates?
  • HappyMJ
    HappyMJ Posts: 21,115
    Combo Breaker First Post
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    I do A then I do B to make sure balance doesn't drop below £2,000.

    I would assume the date the transaction appears on your statement would the the month in which the cash back is calculated. So transaction evening of 30th September would be in October as it won't appear till the 1st. If you're concerned then don't do transactions around end of month.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • SeduLOUs
    SeduLOUs Posts: 2,171 Forumite
    HappyMJ wrote: »
    I do A then I do B to make sure balance doesn't drop below £2,000.

    I would assume the date the transaction appears on your statement would the the month in which the cash back is calculated. So transaction evening of 30th September would be in October as it won't appear till the 1st. If you're concerned then don't do transactions around end of month.

    Good point. I expect to hit my £100 spend within the first week or two of the month anyway, so whether it's transaction or cleared date should actually be a non-issue.

    I'll go for option B to start with I think. If it starts becomes too much of a pain to manage I'll go for A and keep an eye on it.

    Thanks.
  • pphillips
    pphillips Posts: 1,631
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    Simple way to maximise on interest and cashback.

    1. Top up account to £2000
    2. set up a £500 standing order going into the account each month from another banks account.
    3. Set up a standing order going out of the account the following day for £400 a month if you want to benefit from the contactless each month or £500 a month if you don't.

    To earn more open a regular saver and a joint account (if you trust your partner).
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