Savings acct with Standing orders?

michaelmorris_2

Prior to taking retirement in a few years time, I've diverted a large chunk of salary in to an AVC pension at work. Unfortunately, this now puts the income into our bank account below the minimum monthly payments into that account required to get the full benefits it provides. What I'm ideally after is a savings account that allows me to have a standing order leaving the savings account every month (this will be paid into my current account). Does such a thing exist?

Thanks

18cc

Depends what you mean by 'savings account' as the line is getting blurred these days. Current accounts can have higher interest rates than savings accounts and do of course allow standing orders. How much will be in the account ?

michaelmorris_2

Ideally, I'm looking for a 'savings' account where I can pay in a lump sum of say around £10,000 once or twice a year, then use this to pay around £1000 a month into the current account by standing order

fifeken

You can usually recycle money to give the required pay in amount. Pay some into another account (easy by SO) and then pay it back. This may be easier than what you plan.

AirlieBird

You can set up recurring payments on easy access accounts on Newcastle BS's online platform. As well as Newcastle BS, this platform is also used by Ford Money, Paragon and Charter Savings among others.

ColdIron

Not that many savings accounts provide standing orders. How about a Santander 123? It's a current account that pays 1.5%, an effective 1.2% after the £5 monthly fee, which is comparable to some of the better savings accounts. It has a minimum funding requirement but that's no problem for you and you'll need a couple of direct debits but you can get cashback on utility bills. As it's a current account you can set up standing orders from it or even just use it alongside your exiting account for bill payments etc

xylophone

Do you have at least £1000 in the account at all times?

If so, why not set up a TSB plus account, deposit £1500 and set up SOs from each to other for the same day?

Eco_Miser

michaelmorris wrote: »

Ideally, I'm looking for a 'savings' account where I can pay in a lump sum of say around £10,000 once or twice a year, then use this to pay around £1000 a month into the current account by standing order

Does that £1000 get spent or siphoned off into other savings or investments? Otherwise just circulate £1000 between interest paying current accounts, as already suggested.

michaelmorris_2

Does that £1000 get spent or siphoned off into other savings or investments? Otherwise just circulate £1000 between interest paying current accounts, as already suggested.

The £1000 will be spent as it will be replacing the shortfall in wages caused by the large AVC contribution.

18cc

I would definitely think of opening a current account and there is lots of information on this forum about alternatives.

Accounts that play a decent rate of interest include Santander Lloyds TSB and Tesco. All have standing order facility of course

If you want a really good bank and have a mobile phone you could open a Starling account they allow you to set up regular payments

ValiantSon

18cc wrote: »

If you want a really good bank and have a mobile phone you could open a Starling account they allow you to set up regular payments

What exactly is it about Starling that you consider to be "really good"? This is a genuine question. I have seen no compelling reason to use them, so I'd be interested to know.