TSB Current Account Interest

TheBanker

When I fund the account by SO at the start of the month, I leave £100 behind (so SO into TSB is £500, SO back is £400). This covers the contactless payments for the next month.

I only spend £100 on this card then revert to my cashback credit card for the rest of the month. I don't keep an exact tally, just a rough mental note of what I've spent so far.

Normally at the end of the month I will check the balance of this account and if there is a surplus will spend a bit more on this card the next month, if there is a defecit (i.e. below £2k) I'll top it up.

I am probably missing out on a few pennies but it's not worth the hassle making it any more precise. To be honest I would earn more per hour if I spent the time roaming the streets looking for abandoned coins!

TheShape

msallen wrote: »

You say that the balance has dropped below £2000? Was it above £2000 before the contactless spend. If so then any amount over the interest bearing limit was not making anything.

If you are going to be anal about topping it to £2K as soon as it falls below it, then you should be equally anal about it never going above £2K.

Personally I always make sure mine are between 1900 and 2000. Its just not worth the hassle beyond that.

I don't allow it to go above £2000. It's at £1999.50 as of now but i'll worry about that later.

Kernel_Sanders

Ed-1 wrote: »

The times vary which makes it possible to bank interest on the same money at different banks on the same day but doing this regularly is asking for account closure.

TSB and LBG both calculate interest at midnight. Santander is around 8:30pm. Nationwide and Barclays are also before midnight (not sure of the precise time).

I know that the precise time for Santander is 8.20pm Mon-Sat. You can easily test this by making a transaction at 8.21, where you should discover that it is recorded on your statement as being made the following day.

TheBanker wrote: »

I am probably missing out on a few pennies but it's not worth the hassle making it any more precise. To be honest I would earn more per hour if I spent the time roaming the streets looking for abandoned coins!

This is probably true, so I think it far more productive to spend that time reading up on MSE for money saving in other fields.

TheShape wrote: »

I don't allow it to go above £2000. It's at £1999.50 as of now but i'll worry about that later.

Now you're starting to sound like someone who thinks that '0% on balances over £2000' means 0% on balances of over £2000!

TheShape

Kernel_Sanders wrote: »

Now you're starting to sound like someone who thinks that '0% on balances over £2000' means 0% on balances of over £2000!

I know exactly what the interest terms are so I obviously avoid, so much as is practical, having a balance over £2000. I've got no reason to fund the account above £2000 and pull out any interest earned asap.

teddysmum

TheShape wrote: »

I know exactly what the interest terms are so I obviously avoid, so much as is practical, having a balance over £2000. I've got no reason to fund the account above £2000 and pull out any interest earned asap.

I have £2000 which is deposited and will stay there for the duration, then add £100/month for any contactless transactions. I've just done a sweep of cashback and interest, but leave a couple of £s so there is no hassle about spending exactly £100 and not a penny more.

Frogletina

teddysmum wrote: »

I have £2000 which is deposited and will stay there for the duration, then add £100/month for any contactless transactions. I've just done a sweep of cashback and interest, but leave a couple of £s so there is no hassle about spending exactly £100 and not a penny more.

I've just had an email from TSB. I heard that the interest was going down to 3% in January.

But there are also other changes

Changes to your terms and conditions

Your Classic Plus terms and conditions are changing. From 4 January you’ll earn interest on balances up to £1,500. Another new condition is if you have more than one Classic Plus account in your sole name or more than one Classic Plus account in joint names, we may convert your additional account into an Enhance account or another current account from our range. We’ll give you at least two months’ notice before we do this.