Moving money between accounts to cash in on interest

sazzy04

Hi all

Just wondering whether anyone is able to advise on how best to use different bank accounts in order to get different levels of interest each month. I.e salary into one account then moving it to another account to get double the interest. Examples of accounts this works with would be great, please.

Thank you in advance .

grumbler

If you want just the interest, why not get the salary directly to the account paying higher interest?

LuSiVe

sazzy04 wrote: »

I.e salary into one account then moving it to another account to get double the interest.

You only get interest when money's in a bank account - you can't get interest on it in two places at once.

molerat

Banks often have different "end of days" and money can be moved so it is in 2 places at the end of their respective banking day but the extra interest earned would only amount to pennies over a year.

datlex

You can earn interest on interest. Say for example you have £1500 in savings in a TSB current account you will earn 3% on that. You can then transfer that 3% to a different interest paying account to earn further on that.

You can also do this via stoozing. Pay your salary into the high interest account. (transfer a sum elsewhere for cash). If the remaining amount is £1500 or less TSB is a good option. Then spend on a credit card up to the remaining amount. (You will use this to pay the credit card bill in full). Transfer any interest which you earn that to a different account which pays interest.
Of course with interest rates as they are you won't earn much.
You are actual better of spreading out direct debits for rewards payments.

binaryuniverse

I've got 3 accounts paying 3%. TSB and 2x Tesco. Salary goes in to TSB, then moved out to the other 2. Once I've got £2500 total, in the 2 Tesco accounts, that I know I can keep stashed for a year, I'll open a Nationwide account and move that money over to that, at 5%. Then start filling up the Tesco accounts again, with any interest from Nationwide skimmed off in to Tesco.

Once those 3, and TSB are full, I'll skim off the interest, from all accounts, in to whatever the next best rate is. Although I'll have opened a LISA by then, so a lot of the cash will go in to that, to maximise the bonus.

stoozie1

I don't do this to obtain interest per se, other than by topping up a current account to keep my entitlement to pay into its regular saver, but with regular savers I do it to fund 8 of them.

I do do it to achieve switching bonuses, cashback on spends and monthly rewards/gift cards.


Current tax year I will have averaged £160 pcm.

ceredigion

sazzy04 wrote: »

Hi all

Just wondering whether anyone is able to advise on how best to use different bank accounts in order to get different levels of interest each month. I.e salary into one account then moving it to another account to get double the interest. Examples of accounts this works with would be great, please.

Thank you in advance .

It is possible to double up, makes more sense to do it over the weekend rather than daily.
As for how to, a public forum is not the place.

ceredigion

LuSiVe wrote: »

You only get interest when money's in a bank account - you can't get interest on it in two places at once.

Not strictly true