We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

For those who have a TSB Classic Plus Account

Options
Heya, just opened this, and quite pleased with the rate :) for those of you who have this, how and what do you use yours for? I’m thinking of moving money from a few of my accounts into this one due to the rate. I know you only get the 5% on up to £1500 , so I’ll move under that, I feel it doesn’t make sense for me to have money in different accounts with less than this when I could put it here. Anyway just curious to know what you use yours for?
«134

Comments

  • eskbanker
    eskbanker Posts: 36,938 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I can only conceive of two uses of this account - some will use it as intended, i.e. as a full-function current account, while others (especially MSE types) will take the opportunity of the market-leading interest rate to stuff it with £1500 of savings and leave it there, raking in the £6+ of interest every month....
  • El_Torro
    El_Torro Posts: 1,844 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I've had two TSB Classic Plus Accounts for a couple of years now. I just put some of my emergency fund here, taking advantage of the interest.


    Let's not forget they had massive IT issues this year (hence the decision to offer 5% interest to entice people back). That didn't bother me but if I had needed quick access to the money it probably would have done.
  • jimjames
    jimjames Posts: 18,609 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Sweetcake wrote: »
    Heya, just opened this, and quite pleased with the rate :) for those of you who have this, how and what do you use yours for? I’m thinking of moving money from a few of my accounts into this one due to the rate. I know you only get the 5% on up to £1500 , so I’ll move under that, I feel it doesn’t make sense for me to have money in different accounts with less than this when I could put it here. Anyway just curious to know what you use yours for?

    It definitely makes no sense at all to have money in other accounts at less than 5% when you have under £1500 in TSB. Max that account before any lower paying ones.

    I use it for storing any excess savings
    Remember the saying: if it looks too good to be true it almost certainly is.
  • RG2015
    RG2015 Posts: 6,045 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Photogenic
    jimjames wrote: »
    It definitely makes no sense at all to have money in other accounts at less than 5% when you have under £1500 in TSB. Max that account before any lower paying ones.

    I use it for storing any excess savings
    This sounds a bit contradictory. "Any excess savings" implies an amount that varies. Surely keeping exactly £1,500 in this account is the only way to maximise the income.

    I store any excess savings in a Marcus account earning 1.50% AER.
  • Mnd
    Mnd Posts: 1,699 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    2 single accounts and 1 joint. 1500 in each. £18 a month.
    No.79 save £12k in 2020. Total end May £11610
    Annual target £24000
  • aj23_2
    aj23_2 Posts: 1,155 Forumite
    1,000 Posts Third Anniversary Name Dropper Combo Breaker
    I switched from Halifax Reward to TSB Classic Plus to use as my main bank account last moth (as Halifax cut their monthy reward so thought why not), as the min. balance to get the interest is lower than Tesco Bank Current Account and Lloyd's Club Lloyd's. I have a Tesco Bank Current Account but I use that a savings account to get the interest as I opened it when no requirements were in place. I don't tend to have more than £2500 in my main current account so TSB Classic Plus works best for me, and there is no DD requirement and the monthly pay in is one of the lowest.
  • I have 2 accounts and use them purely as savings accounts. Every month I move the £12 odd interest into my main current account and spend it!
  • dont_use_vistaprint
    dont_use_vistaprint Posts: 782 Forumite
    Part of the Furniture 500 Posts Photogenic Name Dropper
    edited 10 December 2018 at 5:53PM
    I'm pretty sure you need £500 in by DD every month for the interest. Is that true?

    I just set up £1000 to and from Nationwide every month to satisfy both of them, and drip an extra £250 each month from another account in to Nationwide which is then moved automatically into their regular saver.

    I'm not really sure its worth it to be honest for all the hassle and extra accounting and at the end of they year you have to close all your accounts and do it all again when all the deals end, but I thought I'd try it out for a year first to be sure.
    Mnd wrote: »
    2 single accounts and 1 joint. 1500 in each. £18 a month.

    That's not bad actually £216 for £4500, but its only one year ? It is treated as interest not a reward so is gross of tax. ? And its 6 direct debits needed ? Internal transfers are not allowed. Doesnt sound so good at all now
    The greatest prediction of your future is your daily actions.
  • eskbanker
    eskbanker Posts: 36,938 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I'm pretty sure you need £500 in by DD every month for the interest. Is that true?
    Not as stated, you need to remove the reference to 'by DD', not least because you can't pay money into one of these accounts by DD....
    That's not bad actually £216 for £4500, but its only one year ?
    No.
    And its 6 direct debits needed ?
    No.
    Internal transfers are not allowed.
    No, not true either.
    Doesnt sound so good at all now
    The real account sounds somewhat better than the fictional one though....
  • Zero_Sum
    Zero_Sum Posts: 1,567 Forumite
    The direct debits are/were needed for an additional £5 cash back reward which was only an introductary offer limited for a few months.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.7K Banking & Borrowing
  • 253K Reduce Debt & Boost Income
  • 453.4K Spending & Discounts
  • 243.7K Work, Benefits & Business
  • 598.5K Mortgages, Homes & Bills
  • 176.8K Life & Family
  • 256.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.