Cycling money though current accounts?

Vortigern

TheShape wrote: »

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.

You will end up with 13 payments per year and an occasional month with 2 payments, but you will never miss a month.

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.

Perhaps we should also watch out for random royal event holidays?

ashnojutsu

YorkshireBoy wrote: »

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

Both Halifax and 1st Direct have it in the T&C's that the inbound S.O must reach by 3:30pm, but it's not listed anywhere in Co-Op T&C's - I was also told by Co-Op they would not charge me for a bounced S.O. I did speak to their cusotmer service dept and they confirmed it, but without a recorded call that's virutally worthless, I guess.

As far as systems failure etc go, that what the text triggers are there for - If I don't get a text in the morning that payments have gone in & out, I'll be on it like a shot; bear in mind I've set the S.O dates early in the month so I've plenty time to do a manual transfer, if needs be.

TheShape

Vortigern wrote: »

You will end up with 13 payments per year and an occasional month with 2 payments, but you will never miss a month.

I did say that it may not be a problem. Might only be a problem if someone sent a four weekly SO out of an account that only receives a monthly payment in. I didn't suggest that you'd miss a month.


[/QUOTE]Perhaps we should also watch out for random royal event holidays?[/QUOTE]

My statement re Xmas, Boxing Day and New Year Bank holidays was a reply to a comment which suggested that a Bank Holiday might NEVER fall on a Wednesday.

Now you mention it though, if a Royal Holiday was called for Wednesday 28th February 2029 and you had a four weekly SO that fell on that day, you would miss February's payment.

TheBanker

I think where the problem with the 4 weekly approach would come is if you try to incorporate payments into Regular Savers - as generally you want these as early as possible but without making two payments in one month.

I currently do my movements manually which works for me - I have a checklist in Excel showing what needs to be done each month. I have 3 'cycles' - Payday, end of the month and second week of the month.

As I log into each account I also collect up any surplus (interest paid or small credits), make sure the TSB account has funds to cover the contactless payments, re-distribute the balance from my Tesco savings accounts which has ended up there due to Direct Debits, etc.

If I was just cycling through the current accounts I would probably use Standing Orders, but the complexity of Regular Savers and also trying to build my balances from income (Which its self varies each month) makes manual easier.

Plus, it gets a bit addictive so even if I had Standing Orders I would probably still log in anyway to check my balances and update my spreadsheet!

TheTracker

TheBanker wrote: »

I think where the problem with the 4 weekly approach would come is if you try to incorporate payments into Regular Savers - as generally you want these as early as possible but without making two payments in one month.

I currently do my movements manually which works for me - I have a checklist in Excel showing what needs to be done each month. I have 3 'cycles' - Payday, end of the month and second week of the month.

As I log into each account I also collect up any surplus (interest paid or small credits), make sure the TSB account has funds to cover the contactless payments, re-distribute the balance from my Tesco savings accounts which has ended up there due to Direct Debits, etc.

If I was just cycling through the current accounts I would probably use Standing Orders, but the complexity of Regular Savers and also trying to build my balances from income (Which its self varies each month) makes manual easier.

Plus, it gets a bit addictive so even if I had Standing Orders I would probably still log in anyway to check my balances and update my spreadsheet!

I have Wednesday 4-weekly SOs for interest eligibility conditions, and monthly SOs on anniversary dates for regular savers. It's been working for years, rather simple. Replenish/Dimish SOs work on the same accord.

The only real work is the scooping up of RS upon maturity and opening a new account, which takes several minutes about 6 times a year.

I like the idea of 7 or 14 day SOs rather than 28, but to me all those extra reconciliation checks accumulated over several years (until the next "Wednesday incident") outweighs the benefit.

skyepark

They did refund me but i was advised on the phone that this cut off point did not exist so i let the money sit in my acc for a day... Crap aint it? FD even text me to let me know the cut off time for same day SO. I jate speaking to banks on the phone they usually dont know their own procedures...

ashnojutsu

Okay, apart from royal weddings or other unpredictable occurances etc, this should work:

1) Set 4-weekly S.O's from Santander on the 1st Wednesday of the month going to all the bonus accounts to cover that month D.D's.

2) Set 4-weekly S.O's from Santander on the 2nd Wednesday of the month to Nationwide (1K), Halifax (750), and Club Lloyds (1.5K). Set S.O's from all of those accounts to pay back Santander on the same day (2nd weds of the month).

3) Set 4-weekly S.O's from Santander on the 3rd Wednesday of the month to Nationwide mrs (1K), Co-Op (800), and First Direct (1K). Set S.O's from all of those accounts to pay back Santander on the same day (3rd weds of the month).

For the D.D's:

1) Set 4 x DD to Co-Op from Tesco for £1.00 on 2nd Wednesday of a month

2) Set 2 x DD to Halifax from Tesco for £1.00 on 2nd Wednesday of a month

3) Set 2 x DD to Lloyds from Tesco for £1.00 on 3rd Wednesday of a month

I will eventually add in a BOS Vantage. That looks pretty bulletproof, with regards to not missing payments right?
All credit to the people who put me on the path of 4 weekly S.O's rather than monthly. :beer:

Westie983

Apart from the payments go from Coop, Halifax and Lloyds to Tesco not the other way round, so the payments are pulled from the accounts by DD.

Vortigern

The idea with the 4-weekly DDs is to send money on a Wednesday from a full account to an empty one and return the money on a Thursday. This ensures you don't put an empty account into overdraft.

ashnojutsu wrote: »

1) Set 4-weekly S.O's from Santander on the 1st Wednesday of the month going to all the bonus accounts to cover that month D.D's.

It seems strange to use 4-weekly SOs to cover monthly DDs?

ashnojutsu wrote: »

2) Set 4-weekly S.O's from Santander on the 2nd Wednesday of the month to Nationwide (1K), Halifax (750), and Club Lloyds (1.5K). Set S.O's from all of those accounts to pay back Santander on the following day (2nd Thursday of the month).

Corrected that for you. You need the Wed/Thur trick for Halifax and for Nationwide's FlexAccount. You don't need it for Club Lloyds or Nationwide's FlexDirect as these accounts should have sufficient funds for same day, monthly swaps.

ashnojutsu wrote: »

3) Set 4-weekly S.O's from Santander on the 3rd Wednesday of the month to Nationwide mrs (1K), Co-Op (800), and First Direct (1K). Set S.O's from all of those accounts to pay back Santander on the following day (3rd Thursday of the month).

Same again.

ashnojutsu wrote: »

For the D.D's:
1) Set 4 x DD to Co-Op from Tesco for £1.00 on 2nd Wednesday of a month

2) Set 2 x DD to Halifax from Tesco for £1.00 on 2nd Wednesday of a month

3) Set 2 x DD to Lloyds from Tesco for £1.00 on 3rd Wednesday of a month

I don't have a Co-Op account so you'll have to do a little research yourself. I think I read somewhere that a weekly DD would satisfy their requirement for 4 DDs per month, but don't take my word for it!

For Halifax, use a pair of monthly DDs totalling £5 to skim off the reward payment.

For Lloyds, use a pair of monthly DDs to skim off the estimated monthly interest.

firsttimemover

Does anyone have a definitive list of banks which debit payments on a non-working day? I can see Tesco mentioned in this thread and I've just noticed Nationwide do (they took my regular saver on Saturday, but I'm not sure if that's just because it's an internal payment or not). It would be useful to know which ones to look out for.