Cycling money though current accounts?

Ballard

I haven't looked at standing orders in too much depth but I happened to set one up at Lloyds this morning and it allowed weekly, monthly and four-weekly. I obviously can't vouch for all institutions.

ashnojutsu

TheShape wrote: »

You don't need £1000 monthly pay-in to First Direct. A savings account (not the regular saver) is enough to avoid the monthly fee.

Good suggestion, but in order to qualify for the £100 farewell gift, you must have paid in £1,000 per month for six months.

Vortigern wrote: »

Most banks allow you to to set up standing orders 4-weekly, because some people are paid 4-weekly.

So, for an empty account like Halifax Rewards you can pay in the required amount every 4 weeks on a Wednesday, and send the money back every 4 weeks on a Thursday. You won't hit a bank holiday until December 2018.

This maybe the key - surely if you setup the inbound & outbound S.O's to happen 4 weekly on a Wednesday, they will NEVER hit a bank holiday right?

youngretired

Hello Skyepark,when did Nationwide charge you for a unpaid standing order when/if funds were received that day to cover it? They have a cut off like FD in the afternoon (I think it's about 2.30) and it is on their website. They signed up for this second chance payment in September 2014 so if you were charged unfairly then you should be able to claim it back.

TheShape

ashnojutsu wrote: »

Good suggestion, but in order to qualify for the £100 farewell gift, you must have paid in £1,000 per month for six months.



This maybe the key - surely if you setup the inbound & outbound S.O's to happen 4 weekly on a Wednesday, they will NEVER hit a bank holiday right?

Good point re the farewell gift.

Beware the 4 week standing order as the date will slowly get earlier in the month and may slip into the previous month. You could end up with 2 payouts in one calendar month and 13 transfers per year. May not be a problem but needs accounting for.

Xmas Day or Boxing Day or New Years Day would be a bank holiday if they fell on a Wednesday but won't happen until 2018/2019.

teddysmum

I go by the manual route, too.


While doing this I can check how much of the £100 for contactless payment is available in each account of our TSB accounts , make sure payments are transferred and adjust ins and outs to suit how much is left from last month.


This is also flexible if more accounts are being added to the 'ring' and allows re-routing if there is a problem with one institution (as is the case with NatWest at the moment).

TheShape

Don't forget to make use of your account's text alert services as they can help monitor payments.

For example, my TSB account will send and alert when my balance is at or above £2001 and also if the balance is at or below £2000. My SO does go in one day and out the next so I get a text each day.

Not sure if this would help with SO going in and out the same day as balance would be static but might alert you if one or other payment hadn't happened.

Ballard

TheShape wrote: »

Good point re the farewell gift.

Beware the 4 week standing order as the date will slowly get earlier in the month and may slip into the previous month. You could end up with 2 payouts in one calendar month and 13 transfers per year. May not be a problem but needs accounting for.

Xmas Day or Boxing Day or New Years Day would be a bank holiday if they fell on a Wednesday but won't happen until 2018/2019.

This is why my suggestion is to make the standing order every week rather than every four weeks. Smaller amounts make it simpler to automate and bank holidays aren't an issue. It seems a splendid idea to me but no one else appears to concur.

ashnojutsu

Yeah, the text triggers are definately a good idea.

As far as bounced S.O's go, Co-op, Halifax, and 1st Direct have all confirmed that as long as the inbound S.O hits the account by 23:59 on the day the outbound S.O leaves, no charges will be incurred. So doing both on the same day will not be problem, if I have thought this through. Even if it falls on a weekend/bank holiday, next working both S.O's will kick in, and if you schedule it in the first half of the month, there is no risk of the S.O's falling into the next month. :cool:

agrinnall

ashnojutsu wrote: »

Yeah, the text triggers are definately a good idea.

As far as bounced S.O's go, Co-op, Halifax, and 1st Direct have all confirmed that as long as the inbound S.O hits the account by 23:59 on the day the outbound S.O leaves, no charges will be incurred. So doing both on the same day will not be problem, if I have thought this through. Even if it falls on a weekend/bank holiday, next working both S.O's will kick in, and if you schedule it in the first half of the month, there is no risk of the S.O's falling into the next month. :cool:

It's fine if the transfer completes on the day it is scheduled to start, but the rules are that it has to complete by the end of the next business day, so if that happens you'll be paying charges and you have no comeback on the banks as they have abided by the rules. In most cases the payment will be same day but you can't guarantee it.

YorkshireBoy

ashnojutsu wrote: »

As far as bounced S.O's go, Co-op, Halifax, and 1st Direct have all confirmed that as long as the inbound S.O hits the account by 23:59 on the day the outbound S.O leaves, no charges will be incurred.

In writing via secure message or letter? Or better still, in the T&Cs?

So doing both on the same day will not be problem, if I have thought this through.

Have you thought about what would happen if there was a failure with the incoming payment, ie systems failure or a hold-up for additional security checks?...both of which have happened in recent times (with RBSG and Santander (particularly) respectively).