What account should I take out?

sufcboy

ColdIron wrote: »

Yes, it doesn't need to stay there. If you set up two opposing standing orders it will look after itself. Avoid the end of the month in case of bank holidays and weekends

So can I do the transfer at any time of month? I'm guessing they'll be a cut off date to do it so the interest will be paid?

ColdIron

Yes any time of the month. Read the T&Cs, there is no mention of a 'cut off date'

YorkshireBoy

sufcboy wrote: »

So can I do the transfer at any time of month? I'm guessing they'll be a cut off date to do it so the interest will be paid?

No need to guess...just read the respective account T&Cs.


A word on Tesco...they send SOs on non-working days, whereas Nationwide do not. So maybe best to set the cross-firing SOs for a Wednesday or Thursday, or avoid altogether by making them manually.


Another tip, open the Nationwide Flexclusive regular saver and drip feed the Tesco cash into it at the rate of £500 a month. After 5-6 months your entire pot is making 5% AER (for 6 months).

Eco_Miser

sufcboy wrote: »

So can I do the transfer at any time of month? I'm guessing they'll be a cut off date to do it so the interest will be paid?

Yes, close of business on the last day of the month (but read the T&Cs for yourself, because some banks stipulate an earlier date and the posters on here could get confused).
In practice, don't set a Standing Order later than the 26th, since some months only have 28 days, and most banks (not Tesco) don't initiate SOs on weekends.

Also, although not really relevant to your plan, the £1000 doesn't have to go in all at once if multiple payments would be more convenient.

sufcboy

YorkshireBoy wrote: »

Another tip, open the Nationwide Flexclusive regular saver and drip feed the Tesco cash into it at the rate of £500 a month. After 5-6 months your entire pot is making 5% AER (for 6 months).

I was thinking of opening the ref saver account so I could save more than the allowed £200 a month in the htb isa. What do you mean by drip feed from the Tesco account? (Sorry to sound dumb)

badger09

sufcboy wrote: »

I was thinking of opening the ref saver account so I could save more than the allowed £200 a month in the htb isa. What do you mean by drip feed from the Tesco account? (Sorry to sound dumb)

Each month, transfer £1000 from Tesco to Nationwide FlexDirect. Then transfer £500 from NWFD to Nationwide Flexclusive Regular Saver, then transfer £500 + the interest from NWFD back to Tesco.

Simples:p

But you must read, and understand the T&Cs.