Best bank account to pay bills from?

cluelessoncanvey

Apologies if it's already been answered, but a quick search couldn't see it.

Currently have a TSB+ classic account which gives you 5% interest apa.

Just opened a Natwest rewards account for the 3% cashback on bills. But now not sure what of the two options is best to have the bills come out. Using Natwest;'s calculator I make money using their account. But would I make more if money is left in a 5% interest account until it is withdrawn? It would be easy if these companies withdraw the money on the sameday each month but they don't, so the money could be sitting in there for 10 days or something until it is touched. Unless its best to work out which companies collect on the day you asked for and which dont.

The example I was looking at was British Gas, they collected on the 11th in January and the 1st in Feb, but this may have been because I moved in on 30th November, and the 11th jan seems to be the first payment.

Hope I didn't confuse too much! finding myself somewhat confused myself. AM guessing 3% cashback is probably better, as I don't know or understand how much the daily interest would be on a 5% pa account.

grumbler

cluelessoncanvey wrote: »

Apologies if it's already been answered, but a quick search couldn't see it.

Currently have a TSB+ classic account which gives you 5% interest apa.

Just opened a Natwest rewards account for the 3% cashback on bills. But now not sure what of the two options is best to have the bills come out. Using Natwest;'s calculator I make money using their account. But would I make more if money is left in a 5% interest account until it is withdrawn? It would be easy if these companies withdraw the money on the sameday each month but they don't, so the money could be sitting in there for 10 days or something until it is touched.

Well, 5% p.a. is just ~0.14% for 10 days. Do your maths.
Also, as you know the dates, nothing stops you from keeping the money in a 5% account and making manual payments to Natwest when it's needed or setting SOs for this. If the amounts vary significantly from month to month, SOs have to be adjusted every month, but I don't think this can be the case for utility bills.

...as I don't know or understand how much the daily interest would be on a 5% pa account.

You won't make a big error by dividing 5% by 365...
And don't forget to subtract the tax if you pay it.

cluelessoncanvey

Thanks, as easy as that eh! I thought it gets all complicated with compound interest etc and beyond me, but dividing 365 by 5% tells me I am best using a NatWest account as originally intended then. Going to have an account with every bank the way I am going! Started with barclays. Then got a first direct for the 6% saver, then a halifax one for the £5 per month, then a TSB for the 5% current, and now a Natwest for the bills!