Premier / Private Accounts Minimum funding - Does it need to Stay in the Account ?

BankSaver

My dad has Barclay's Premier account (Min £75k+ a year Funding) and he is adamant that a large balance needs to be kept in the account to 'Keep' the account, I told him that's not true and he should move the money out to an account that pays interest, but he says he cant run the balance low as the account needs to have a high balance to qualify for the account.

Who is right ?, I think if the Minimum funding is £75k a year then as long as £75k passes through the account in a year then surely that's all they need to see, I cant see anywhere were it says you need to have a large balance ?.

Is the same true of the NatWest Black account as that is £100k a year, and again I would think as long as £100k passes through in a year that should satisfy them ?.

Zanderman

The requirement is that £75K salary is paid in during the year, not that you must keep £75K in there. Or have savings of £100K.

From the Barclays website:

To open a Premier Current Account, you’ll need:

An annual gross income paid into a Barclays current account of £75,000+
Or
Savings and investments of £100,000+ through Barclays

I think the old Premier Life accounts may have had a tiered interest rate that was better the more you kept in there. Don't know if that applies to the current Premier scheme.

But whatever the interest rates (if any) the basic requirement is gross salary £75K paid in - nothing to stop your Dad spending down to the last 10p each month as long as the right level of payment comes in regularly.

It's a current account - the whole point is to spend the money in it and then pay in more to replace it.