For those who have a TSB Classic Plus Account

Legacy_user

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?

eskbanker

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

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

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

RG2015

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

2 single accounts and 1 joint. 1500 in each. £18 a month.

aj23_2

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.

moneyfoolish

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

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

eskbanker

dont_use_vistaprint wrote: »

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....

dont_use_vistaprint wrote: »

That's not bad actually £216 for £4500, but its only one year ?

No.

dont_use_vistaprint wrote: »

And its 6 direct debits needed ?

No.

dont_use_vistaprint wrote: »

Internal transfers are not allowed.

No, not true either.

dont_use_vistaprint wrote: »

Doesnt sound so good at all now

The real account sounds somewhat better than the fictional one though....

Zero_Sum

The direct debits are/were needed for an additional £5 cash back reward which was only an introductary offer limited for a few months.