Getting more from interest?

vnnnn

I set up a TSB account a couple of months ago and last month, I only earned pennies in the 3% monthly interest they offer. Could I transfer money from my other account (for which there are regular transactions between) to the TSB one and send the money back, rinse and repeat on a monthly basis, or would they catch on?

PeacefulWaters

Knock yourself out.

Tom99

Up to the amount they pay the 3% interest on you will get the most interest by having as much in the account as possible for as long as possible.

Just paying money in and out won't in itself earn any interest.

You can pay money in and out as often as you like.

vnnnn

ceredigion wrote: »

Not sure that i understand the question.

TSB pay 3% interest per month on accounts up to £1500. Was wondering if I could exploit that by transferring money from my other account before the interest is paid in, put it back after and keep doing it on a monthly basis with no repercussions.

£45 for a few taps on the phone though, worth a pop. Thanks guys.

Tom99

vnnnn wrote: »

TSB pay 3% interest per month on accounts up to £1500. Was wondering if I could exploit that by transferring money from my other account before the interest is paid in, put it back after and keep doing it on a monthly basis with no repercussions.

£45 for a few taps on the phone though, worth a pop. Thanks guys.

You will only get interest for the days the money is in your TSB account. You can't expect to pay it in one day, take it out the next and get a months worth of interest.

PeacefulWaters

Tom99 wrote: »

You will only get interest for the days the money is in your TSB account. You can't expect to pay it in one day, take it out the next and get a months worth of interest.

Well you'll get a month's worth of interest on any balance up to £1,500 left in for the full month.

Tom99

ceredigion wrote: »

But you can :cool:

[FONT=Verdana, sans-serif]You can pay money in and out quickly to comply with the requirement to pay in a minimum of £500 per month but if you want to get the most interest (£45 pa) you will need to keep a balance in the account of £1,500 for 365 days a year.

[/FONT] [FONT=Verdana, sans-serif]The fact the OP is getting pennies per month rather than £3.75 interest suggests they are not keeping money in the account for long enough.[/FONT]

Tom99

ceredigion wrote: »

No. You will get a full months worth of interest as long as there is £1500 in the account when they calculate the interest daily.

The interest is 3% APR so you need £1500 in the account for 365 days to get 3% of £1,500.

To pay £45 pa interest for having £1,500 in the account on only 12 days of the year would be 91% APR.

colsten

vnnnn wrote: »

TSB pay 3% interest per month on accounts up to £1500.

No they don't.

vnnnn wrote: »

I only earned pennies in the 3% monthly interest they offer.

Actually, you didn't earn any interest on the 3% monthly offer as there is no such offer.

The 3% is AER where the A stands for annual.

Tom99

colsten wrote: »

Actually, you didn't earn any interest on the 3% monthly offer as there is no such offer.

The 3% is AER where the A stands for annual.

Its 3% AER but paid monthly

binaryuniverse

ceredigion wrote: »

No. You will get a full months worth of interest as long as there is £1500 in the account when they calculate the interest daily.

Reading between the lines I don't think the OP is cut out for that sort of thing.