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High current account interest -- using it for savings
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juliushibert
Posts: 66 Forumite
Current account interest rates are high and the changes to allowances for savings at the moment but I always feel reluctant to have £1000s of savings in my current account.
I'm thinking of keeping my current account and opening a second current account with TSB to use as my day-to-day. And then not using my card or any day-to-day access to my existing current account that has a high interest rate.
My wage and direct debits would remain with my current account and I'd move an allowance per month to the new TSB account for day-to-day expresses.
Is this a good idea? Or is there something better I could do?
I'm thinking of keeping my current account and opening a second current account with TSB to use as my day-to-day. And then not using my card or any day-to-day access to my existing current account that has a high interest rate.
My wage and direct debits would remain with my current account and I'd move an allowance per month to the new TSB account for day-to-day expresses.
Is this a good idea? Or is there something better I could do?
0
Comments
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This is what many people already do. You should check whether there's any requirement for direct debits on your existing account and that the funds that you transfer to your new account are sufficient to meet the terms and conditions.0
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juliushibert wrote: »My wage and direct debits would remain with my current account and I'd move an allowance per month to the new TSB account for day-to-day expresses.
Is this a good idea? Or is there something better I could do?
Yes, this is a good idea, and as said, plenty of people do this regularly.
The only thing I would say is
- make sure you opt for paperless statements and correspondence and fund it with the required amount.
- this will only earn you interest on the first £2000 of your savings, anything above doesn't earn interest so you might need to look for another account when you hit the threshold. There are plenty of options out there though
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If you can't be the best -
Just be better than you were yesterday.0 -
You could actually have a TSB Classic Plus- that's the one paying 5% on £2K and up to £5 pm on contactless payments per month (subject to minimum pay in and paperless as mentioned above) Use this as a savings a/c essentially
and a TSB basic a/c for other spending. When I have spent on my contactless card I just transfer that amount into the Classic + so that the balance never falls below £2K. It is a handly little earner until 31 dec.Being polite and pleasant doesn't cost anything!
-Stash bust:in 2022:337
Stash bust :2023. 120duvets, 24bags,43dogcoats, 2scrunchies, 10mitts, 6 bootees, 8spec cases, 2 A6notebooks, 59cards, 6 lav bags,36 angels,9 bones,1 blanket, 1 lined bag,3 owls, 88 pyramids = total 420total spend £5.Total for 'Dogs for Good' £546.82
2024:Sewn:59Doggy ds,52pyramids,18 bags,6spec cases,6lav.bags.
Knits:6covers,4hats,10mitts,2 bootees.
Crotchet:61angels, 229cards=453 £158.55profit!!!
2025 3dduvets0 -
Katiehound wrote: »You could actually have a TSB Classic Plus- that's the one paying 5% on £2K and up to £5 pm on contactless payments per month (subject to minimum pay in and paperless as mentioned above) Use this as a savings a/c essentially
and a TSB basic a/c for other spending. When I have spent on my contactless card I just transfer that amount into the Classic + so that the balance never falls below £2K. It is a handly little earner until 31 dec.
Whats happening on 31 dec?0 -
Whats happening on 31 dec?
Well, as far as I am aware the £5 contactless cashback ends....Being polite and pleasant doesn't cost anything!
-Stash bust:in 2022:337
Stash bust :2023. 120duvets, 24bags,43dogcoats, 2scrunchies, 10mitts, 6 bootees, 8spec cases, 2 A6notebooks, 59cards, 6 lav bags,36 angels,9 bones,1 blanket, 1 lined bag,3 owls, 88 pyramids = total 420total spend £5.Total for 'Dogs for Good' £546.82
2024:Sewn:59Doggy ds,52pyramids,18 bags,6spec cases,6lav.bags.
Knits:6covers,4hats,10mitts,2 bootees.
Crotchet:61angels, 229cards=453 £158.55profit!!!
2025 3dduvets0 -
Katiehound wrote: »Well, as far as I am aware the £5 contactless cashback ends....
oh. :eek:
If its successful, they'll extend it.0 -
Doubt it....
I dont mean if the product is used a lot. I mean if the product does what they intended, which is probably be a loss leader for other products. So i think it will not be a success in their eyes so not be extended.
If it was successful though why would they not extend it?0 -
They won't be able to promote it as 5 + 5 + 5 anymore
0 -
They won't be able to promote it as 5 + 5 + 5 anymore
I'm sure they will, they will just reduce charges to £5 per failed transaction and grab a market of poor budgeters and still make a killing!SO... now England its the Scots turn to say dont leave the UK, stay in Europe with us in the UK, dont let the tories fool you like they did us with empty lies... You will be leaving the UK aswell as Europe0
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