Can you get around minimum monthly pay-in by taking £ out then putting it back?

Claire190

Hi,

Would appreciate a quick bit of advice.

I am in the fortunate position of taking a year out this year, but naturally this means I won't be getting a monthly salary. I want to move £ out of my Santander ISA somewhere else to get a better rate (savings account or ISA). This money will be used as my monthly income while I'm not working. As I won't be receiving a monthly salary into the new account, I wanted to ask if you can get around the minimum monthly deposit by withdrawing that amount from the account and then putting it straight back in? Cheeky, but wondering if it's within the rules?

Any feedback on experiences with this appreciated.

thanks,

Claire190

YorkshireBoy

Claire190 wrote: »

(savings account or ISA)

Or, more likely, a current account.

I wanted to ask if you can get around the minimum monthly deposit by withdrawing that amount from the account and then putting it straight back in? Cheeky, but wondering if it's within the rules?

You'll find out whether it's "within the rules" by reading the "rules" AKA the account T&Cs...but I've yet to see any current account (which is where you'll get the highest interest rate at the moment on a lump sum) T&Cs that say you can't make up the minimum funding value by anything other than a single payment.

Cisco001

It usually need to be external account.
i.e. you move £1000 from bank A to bank B, then move that £1000 from B back to A in 5 minutes. that count meeting min pay in
But if you move £1000 from bank A online saver/ ISA to bank A current usually not count

YorkshireBoy

Cisco001 wrote: »

It usually need to be external account.
i.e. you move £1000 from bank A to bank B, then move that £1000 from B back to A in 5 minutes. that count meeting min pay in
But if you move £1000 from bank A online saver/ ISA to bank A current usually not count

Someone else posted that 'untruth' earlier today. The fact is that of the 6* main account providers paying interest/Rewards at the moment, only 2 of them require external funding. The other 4 (that's twice as many!) will accept internal funding.



* TSB, Lloyds, BoS, Halifax, Santander, Nationwide.

Eco_Miser

Claire190 wrote: »

I wanted to ask if you can get around the minimum monthly deposit by withdrawing that amount from the account and then putting it straight back in?

Well done on working that out for yourself.
The accounts to look at are listed here
Remember that you can have more than one current account.

A substantial number of the threads on here are discussions on this very subject.

bigfreddiel

YorkshireBoy wrote: »

Someone else posted that 'untruth' earlier today. The fact is that of the 6* main account providers paying interest/Rewards at the moment, only 2 of them require external funding. The other 4 (that's twice as many!) will accept internal funding.



* TSB, Lloyds, BoS, Halifax, Santander, Nationwide.

Santander 123 account requires external funding

fj

YorkshireBoy

bigfreddiel wrote: »

Santander 123 account requires external funding

fj

Do you know which the other one, of the 6 listed, is?

oldfella

bigfreddiel wrote: »

Santander 123 account requires external funding

fj

not so, a deposit from somebody else's santander account is OK

colsten

Claire190 wrote: »

As I won't be receiving a monthly salary into the new account, I wanted to ask if you can get around the minimum monthly deposit by withdrawing that amount from the account and then putting it straight back in? Cheeky, but wondering if it's within the rules?

If you withdraw in cash, and re-deposit in cash, that would be ok, though it could be a bit cumbersome to do this for the required amounts, and on a regular basis.

Claire190 wrote: »

I want to move £ out of my Santander ISA somewhere else to get a better rate (savings account or ISA). This money will be used as my monthly income while I'm not working.

You seem to imply that you will not depend on your monthly income during your year off. Nice position to be in if it doesn't involve selling your soul. #JerryHall

You don't say how much cash you have in your ISA, or how much income you expect. Around 1.7% gross for the year on some £100K might be realistic - £1,700 a year, £141 a month before any taxes.

Regardless of all the above, you will be able to make deposits into your accounts on a regular (e.g. monthly) basis by transferring money from one of your accounts to another one of yours. For the precise terms. you should consult the terms and conditions of the relevant accounts.

Flobberchops

YorkshireBoy wrote: »

Do you know which the other one, of the 6 listed, is?

Unless I've got the wrong end of the stick, I believe that would be Barclays, whose Blue Rewards requires £800 to enter the nominated current account but *not* from a linked account.

Eco_Miser

oldfella wrote: »

bigfreddiel wrote:

Santander 123 account requires external funding

fj

not so, a deposit from somebody else's santander account is OK

I believe that somebody else's account, in whatever bank, will always count as external funding, whichever bank you're with.