Confused by bank accounts for me

Spec-Chum

Morning

I was in debt for many, many years, constantly living in, and maxing out, my (rather large, £1000!) overdraft but I'm finally out of the other side and actually have a couple of £K of my OWN money in my account now

Trouble is, my account is a bog standard, pays no interest, current account with RBOS and I can't help thinking my money will better serve me elsewhere but I'm confused by all the options!

I do need instant access to my money as I do spend it, and in general there's usually between £2000 and £3000 in there (and rising), so can anyone guide me around the maze of accounts please? Is there one or two that would stand out for me?

Huge thanks!

Katiehound

The account that springs to mind is TSB Classic Plus because it only requires £500 funding per month and no out-going DDs. Currently paying 5% on £2K, plus there is a monthly saver also paying 5%. (and the contactless card giving potential to earn an extra £5 pm until the end of the year.)
You could run this alongside your existing account
Must be paperless billing and paperless correspondence to earn the interest.
£500 only has to 'visit'- not stay!

Some other accounts have to have 2 x DDs (or more) going out per month.
Another possibility might be Halifax- £5 pm reward. £750 in and 2 DDs out
I wouldn't close your existing account- you could use it for a switch deal- now or in the future

YorkshireBoy

Katiehound wrote: »

The account that springs to mind is TSB Classic Plus because it only requires £500 funding per month and no out-going DDs. Currently paying 5% on £2K, plus there is a monthly saver also paying 5%. (and the contactless card giving potential to earn an extra £5 pm until the end of the year.)
You could run this alongside your existing account
Must be paperless billing and paperless correspondence to earn the interest.
£500 only has to 'visit'- not stay!

Some other accounts have to have 2 x DDs (or more) going out per month.
Another possibility might be Halifax- £5 pm reward. £750 in and 2 DDs out
I wouldn't close your existing account- you could use it for a switch deal- now or in the future

Not anymore there isn't.

Edit: And the debit card contactless benefit runs until September 2017 for new customers.

Spec-Chum

OK, thanks, so I could open the TSB one, transfer £2k over to keep in there (while still being accessible) then every month transfer £500 for a day or 2 then just transfer it back to my RBOS?

I do know the Halifax one offers £125 to switch but that involves closing my RBOS I assume. I don't need the £1000 overdraft any longer but I kinda like that it's there for some reason. Bad habit I guess.

Spec-Chum

Double post...

Spec-Chum

YorkshireBoy wrote: »

Not anymore there isn't.

EDIT: Ignore, missed the bold part lol

Spec-Chum

How about a bit of juggling? Hear me out, I might have this wrong haha

Open a TSB account, put £2k in and switch my RBOS to the Halifax one, then transfer £500 per month to TSB (my wages will go in the Halifax so £750 here is covered) then transfer it back to Hlaifax. Would that mean I get the £5 from Halifax AND the 5% from TSB, or am I missing something obvious?

Archi_Bald

You only get interest for the amount of money you have in an account, subject to any upper limits. Interest is calculated on the daily balance.

Spec-Chum

Archi_Bald wrote: »

You only get interest for the amount of money you have in an account, subject to any upper limits. Interest is calculated on the daily balance.

Sorry I probably didn't explain properly.

The TSB will have £2K in it constantly, unless I spend some, obviously. It'll only be the £500 I'll be moving in and out.

How long will the £500 a month have to be in the TSB account anyway? Couple of days or it is literally just a banking day?

xylophone

How long will the £500 a month have to be in the TSB account anyway? Couple of days or it is literally just a banking day?

It can be in and out on the same day by FP if you wish.

tempus_fugit

You can move the money in and out pretty much instantly. Your plan sounds like a good one to me. It's similar to what I do, although I have a few more accounts to move money around in each month.