Is Cycling Money through my accounts each month Illegal ?

paragon909

I don't see how transferring 1000 or 2000 etc 3 times a month to current accounts is making you money....

All your doing is moving money around from accounts

neilsedaka

paragon909 wrote: »

I don't see how transferring 1000 or 2000 etc 3 times a month to current accounts is making you money....

All your doing is moving money around from accounts

It's to qualify for having the account in the first place and to qualify for the associated interest or bonus or cashback.

jennifernil

These current accounts pay 3%, 4% and 5% interest, why would you not think that worthwhile?

OP.....if you have 2 or more accounts with the same bank, there is no need with most to fund from another bank, just transfer manually between your accounts.

I have 3 BOS Vantage accounts, the £1000 just goes around them. It also goes through 3 Reward accounts.

Then I have 2 sole TSB and 2 joint, the £500 goes round them.

And I have 1 sole and 1 joint Club Lloyds, the £1500 just swaps between them.

OH also has Halifax, Lloyds and TSB accounts.

Santander is funded with £500 from our main joint Reward account, and I transfer £1750 to OH's HSBC. He sends £1725 straight back, and £25 to his ISA.

We also have several monthly saver accounts and move 3% funds to them to earn 4%, 5% and 6%.

Archi_Bald

paragon909 wrote: »

What a weird way of conducting your banking business, Why the hell does anyone need 8 current account lol. Banks may freeze accounts if they see a pattern.

It's not like your earning interest funds.... Do you OP just like seeing money being sent about... Like a kid with sweets.

paragon909 wrote: »

I don't see how transferring 1000 or 2000 etc 3 times a month to current accounts is making you money....

All your doing is moving money around from accounts

At first I thought you were being facetious but it appears you are actually dead serious and badly uninformed. I suggest you read this http://www.moneysavingexpert.com/savings/savings-loophole, and also the copious number of posts on the forum regarding multi-accounting.

chris_m

Archi_Bald wrote: »

At first I thought you were being facetious but it appears you are actually dead serious and badly uninformed. I suggest you read this http://www.moneysavingexpert.com/savings/savings-loophole, and also the copious number of posts on the forum regarding multi-accounting.

I presume that Paragon909 hasn't twigged that we are actually leaving the maximum interest-earning sum of money in the accounts, to earn the interest, and simply moving money back and forth between them to meet the funding requirements to qualify for the interest.

Ed-1

paragon909 wrote: »

I don't see how transferring 1000 or 2000 etc 3 times a month to current accounts is making you money....

All your doing is moving money around from accounts

There's 2 ways that moving money between your accounts is making money:

1) in an interest-paying current account (e.g. TSB Classic Plus it pays interest of 5% every month on daily balances of up to £2000 as long as £500 goes into the account at some point during that month). If you have £2000 each day in Classic Plus account and transfer £500 in and out of the account at some point in the month you'll get 5% each day on the £2000.

2) by exploiting banks' different cut-off times for calculating interest (e.g. Santander calculates interest each day on the balance of an account at approximately 8:20pm. Lloyds calculates interest on the balance of an account at midnight. So if you have your money in a Santander account at 8:20pm and then move it to Lloyds before midnight you've made interest twice on the same money on the same day).

Both are perfectly legal as long as you are doing it for the above intentions. However if you do (2) daily it can set banks' money laundering systems off, as one of my friends found out, which can lead to closure of accounts and at worst a CIFAS (fraud) marker if banks see you doing it for different reasons.

slopemaster

Ed-1 wrote: »

exploiting banks' different cut-off times for calculating interest (e.g. Santander calculates interest each day on the balance of an account at approximately 8:20pm. Lloyds calculates interest on the balance of an account at midnight. So if you have your money in a Santander account at 8:20pm and then move it to Lloyds before midnight you've made interest twice on the same money on the same day)..

Wow, I didn't know that

Kernel_Sanders

paragon909 wrote: »

What a weird way of conducting your banking business, Why the hell does anyone need 8 current account lol. Banks may freeze accounts if they see a pattern.

It's not like your earning interest funds.... Do you OP just like seeing money being sent about... Like a kid with sweets.

What a weird post. You must be a bit simple if you don't realize that this is the way to maximize interest, instead of getting none!

Man_on_fire

paragon909 wrote: »

What a weird way of conducting your banking business, Why the hell does anyone need 8 current account lol. Banks may freeze accounts if they see a pattern.

It's not like your earning interest funds.... Do you OP just like seeing money being sent about... Like a kid with sweets.

Why settle for just one of these; 5% interest, £5 reward, cashback on bills, or free European travel insurance, when you can have them all?

jimjames

paragon909 wrote: »

What a weird way of conducting your banking business, Why the hell does anyone need 8 current account lol. Banks may freeze accounts if they see a pattern.

It's not like your earning interest funds.... Do you OP just like seeing money being sent about... Like a kid with sweets.

You seriously have no idea about how to get interest in your accounts? Despite being on this forum? Bizarre!

I've had £50k go through my account in a month and have 10 accounts. No issues so far. Oh and I get 5% interest on my account.