Using current accounts as savings

Wallaby84

Just looking at moving some of my ISA money into current accounts for better interest and how the interest is calculated.
Thought I could do
A) TSB 5% with a max of £2000 min of £1000 in with a Nationwide Flex 5% with a max of £2500 min of £1500. So therefore have a standing order of £1000 to go from one account to the other and back again 3-4 days later - is this allowed and does it work?
TSB 5% with max of £2500 min of £1000 with a Club Lloyds having min 4000 max £5500 with a standing order of £1500 from one to the other and back again a few days later also moving 2 x small direct debits to club Lloyds.
I only have 8000 in my ISA so will keep the account open with some left in there.
How does this sound? I don't want to fix money away anywhere at the moment
Is this what people do-is this sensible???
Thanks
PS I bank with first direct and we will be switching our Santander joint in a couple of months when the banks decide what they're all doing with rates. The above is only if these banks don't change their rates

Superscrooge

As you already bank with First Direct. Don't forget the FD regular saver at 6% interest.

Wallaby84

I was going to use that for new savings but this is for existing savings

Eco_Miser

Some of your numbers there don't look right, but the principle of bouncing money from account to account is sound. Some on here have been doing it for years.
Assuming that there will be enough in each account to cover the SO out, you can set all the SOs for the same day. Avoid dates after 25th / within 5 days of statement month to avoid SOs being delayed by weekends and Bank Holidays into the next charging period.

Wallaby84 wrote: »

I was going to use that for new savings but this is for existing savings

What's the difference? It's all your money.

Wallaby84

You can only put 300 / month I think in the reg saver so I wanted the money in my ISA to be earning more so I was thinking to put most of that into current accounts.
Which figures look wrong?
Thanks

bigfreddiel

I would never take money out of an ISA. As long as you don't need it for a while, 5+ years, then you should be in an equity ISA. Good luck fj

bigfreddiel

I think you may have missed the boat on this, all banks offering high interest rates will soon all be gone so in reality your only option will be an equity ISA

Cheers fj

Eco_Miser

Wallaby84 wrote: »

You can only put 300 / month I think in the reg saver so I wanted the money in my ISA to be earning more so I was thinking to put most of that into current accounts.

Yes, you put the lump sum in the current accounts, then feed them into regular savers. Some people seem to think they can only use regular savers for new savings from income, but I've been filling regular savers for years, even when living off savings, so the whole amount was coming from existing savings.
Act quick and set up several regular savers (with different banks) while you can still get them fixed at the current high rates.

Wallaby84 wrote: »

Which figures look wrong?
Thanks

A) TSB 5% with a max of £2000 min of £1000 in with a Nationwide Flex 5% with a max of £2500 min of £1500. So therefore have a standing order of £1000 to go from one account to the other and back again 3-4 days later - is this allowed and does it work?
TSB 5% with max of £2500 min of £1000 with a Club Lloyds having min 4000 max £5500 with a standing order of £1500

xylophone

You would also have access to the Flex regular monthly saver once you have opened your Flexdirect account.

Is your current ISA flexible? If so you could take most of the cash out to deposit elsewhere and return it to the ISA before the end of the tax year if you wished.

http://www.moneysavingexpert.com/savings/flexible-ISAs

Are you currently receiving cash back on the Santander 123?

The "Lite" 123 is available or you could look at Natwest Rewards Account.

Do you also have savings in the Santander 123? Had you looked at Tesco current accounts?

Would you wish to consider switching your Santander to an account offering a switching bonus?

Wallaby84

Think our joint we will switch too Halifax with bonus. We only have 2000 in it.
Why not take some money out? There won't be enough to go over the 1000 tax free savings interest.

teddysmum

Eco_Miser wrote: »

What's the difference? It's all your money.

I believe the OP means that they want somewhere to park the savings they already have (ie. leave them there) and has earmarked the regular savers to use up the amounts they know they will have in future months.