Rotating cash through accounts

zolablue25

Edit: Sorry, you weren't referring to me.

LXdaddy

I repeat the point about avoiding the 1st of the month.


The reason for moving the cash around is to meet the funding requirements of the account. If the requirement is £1,000 deposited during the calendar month then you need to make sure that a transfer doesn't happen a day earlier and get into the previous month.


Similarly some banks use the 1st of the month as the cut off - so if your transfer was a day late then it would fall into the next month.


Santander uses the anniversary of account opening - so is another date to avoid.


I do all my transfers by standing order and they are (almost) all set for the 10th of the month. Exception is my Halifax account where the balance is not big enough to support money going out before it has arrived - so those dates are spread apart a little.

zolablue25

adindas wrote: »

This is interesting where did you see this.
IMO, there should not be any issue at all as long as you could see that the money has arrived into your account before you are transferring it back/out.

Err, in the first response to my query.

I will not be checking that the cash is in before transferring out as I am setting it up to work automatically (as I said in my original post).

qsk

LXdaddy wrote: »

I repeat the point about avoiding the 1st of the month.



The reason for moving the cash around is to meet the funding requirements of the account. If the requirement is £1,000 deposited during the calendar month then you need to make sure that a transfer doesn't happen a day earlier and get into the previous month.

I don't get the logic here: SO always happens AFTER your designated 1st so transfer won't go into an earlier month.

LXdaddy wrote: »

Similarly some banks use the 1st of the month as the cut off - so if your transfer was a day late then it would fall into the next month.

Can you name the bank that might cause problems? I used to have all my SO set for 1st (these include Lloyds, Halifax and TSB) and have never had any trouble. In particular SO for Jan 2016 happened on 04/01/2016 but everything appears to be OK. Maybe I was just lucky.

SnowTiger

qsk wrote: »

Why 4 days?

I guess Easter and Christmas falling around a weekend are two extreme examples.

Good Friday is 25th March and Easter Monday is 28th March.

Therefore the banking calendar will jump from 24th to 29th.

I think Good Friday is technically a Public Holiday and not a Bank Holiday, but the difference between Bank and Public holidays has been lost in time.

But Faster Payments operate 24/7, so this is unlikely to be a real problem.

Dan83

A good chunk of my money movements are by standing order, I have the money in the account for it to be taken before its received, if I was short on funds I wouldn't risk it.

I still log on every month and move any interest to an account where it will gain interest, so the standing order doesn't really save me that much time.

adindas

zolablue25 wrote: »

Err, in the first response to my query.

I will not be checking that the cash is in before transferring out as I am setting it up to work automatically (as I said in my original post).

You area referring problem with same day transfer in and out. People who do the same day transfer In and Out will definitely do it manually so they have the chance to check it before moving it back again.

I never think people will ever do SO in and out in the same day / date on the month if they do not have enough cash in it for this purpose. For this purpose they will need to leave a few day slack before transferring it back.

LXdaddy

qsk wrote: »

I don't get the logic here: SO always happens AFTER your designated 1st so transfer won't go into an earlier month.

I may be wrong but I believe I've seen SOs happen before the weekend if the due date falls on a non-work day (but I might be mistaken)

Can you name the bank that might cause problems? I used to have all my SO set for 1st (these include Lloyds, Halifax and TSB) and have never had any trouble. In particular SO for Jan 2016 happened on 04/01/2016 but everything appears to be OK. Maybe I was just lucky.

Either Lloyds or TSB (or both) has their month end on the 1st.


My point is not so much about which specific date you pick but given that we are talking about funds going on a merry-go round it doesn't matter which day they visit each bank - no extra interest earned or lost so isn't it better to stay away from the period end dates to avoid any potential issue with early or late transfers?

Dobbibill

qsk wrote: »

I understand what you mean but cannot see the difference between the first day and a day in the middle of the month, as the billing period could fall on a middle day of month as well.

This is why I said about the 1st of the month.

Monthly billing periods
This applies to all accounts and means we divide the year into monthly billing
periods that differ from calendar months as they start on the day after the first working day of
the month. The last day of a monthly billing period is the first working day of the following month.
The table below provides examples of how monthly billing periods work:
First day of monthly billing period Last day of monthly billing period
3rd February 2015 2nd March 2015
3rd March 2015 1st April 2015
2nd April 2015 1st May 2015
In the above example, February’s monthly billing period starts on 3rd February because it’s the day
after February’s first working day. The monthly billing period ends on 2nd March as this is the first
working day of the following month.

Taken from the Halifax website here

HTH

qsk

Dobbibill wrote: »

This is why I said about the 1st of the month.



Taken from the Halifax website here

HTH

Ok that explains why it doesn't matter if you set the SO on first day or not, as the SO will be collected on the first working after the 1st, which is still inside the previous billing period.