Pay in x per month accounts

bergeroo

I am sure it has been answered before but a search is inconclusive.

I see lots of bank accounts with good promos/offers/extra accounts/ higher interest rates come with the caveat of you have to pay £x,xxx per month in. I.e. Your salary.

As someone who has a wildly varying income and earns very different amounts per month (or sometimes nothing) - I have never signed up to these offers - but I saw someone say, just get two of these accounts and do a standing order from each account to the other using the balances on the same day each month.

Seems like a good work around, but is it ok to do this or is it somewhat frowned upon?

18cc

yes you can do this but make sure you allow for the situation that the s orders dont happen on the same day eg over weekend and christmas so you dont inadvertantly go overdrawn for a short period

eskbanker

It's a common mechanism used by many posters on here, although there are a few who disapprove. The banks generally don't object if the specified account terms (which typically don't mention salary) are met, except HSBC, who tend to be more stringent about applicants needing to declare verifiable earnings over their nominated monthly threshold....

RG2015

eskbanker wrote: »

It's a common mechanism used by many posters on here, although there are a few who disapprove. The banks generally don't object if the specified account terms (which typically don't mention salary) are met, except HSBC, who tend to be more stringent about applicants needing to declare verifiable earnings over their nominated monthly threshold....

Are you saying that a few on this site disapprove or is this something you have heard elsewhere?

I have never come across anyone either on this site or elsewhere who disapprove of this practice. However, I am in a small minority (perhaps of one) who given the opportunity would never switch banks to get a switching payment (aka a bribe )

RG2015

bergeroo wrote: »

I am sure it has been answered before but a search is inconclusive.

I see lots of bank accounts with good promos/offers/extra accounts/ higher interest rates come with the caveat of you have to pay £x,xxx per month in. I.e. Your salary.

As someone who has a wildly varying income and earns very different amounts per month (or sometimes nothing) - I have never signed up to these offers - but I saw someone say, just get two of these accounts and do a standing order from each account to the other using the balances on the same day each month.

Seems like a good work around, but is it ok to do this or is it somewhat frowned upon?

The monthly pay in requirements are generally smaller than the average UK salary. Santander and TSB are £500 and Nationwide is £1,000. NatWest and HSBC are a bit higher at £1,500 and £1,750 respectively.

Also, it does not need to be a single payment and multiple transfers between different accounts can be utilised to satisfy the monthly pay in criteria.

Zero_Sum

RG2015 wrote: »

The monthly pay in requirements are generally smaller than the average UK salary. Santander and TSB are £500 and Nationwide is £1,000. NatWest and HSBC are a bit higher at £1,500 and £1,750 respectively.

Also, it does not need to be a single payment and multiple transfers between different accounts can be utilised to satisfy the monthly pay in criteria.

A few more to that list
Halifax & Tesco are £750 & Co-Op is £800

The other thing some also specify that its an external a account, so you cant do £1000 from one nationwide account to another.

RG2015

Zero_Sum wrote: »

A few more to that list
Halifax & Tesco are £750 & Co-Op is £800

The other thing some also specify that its an external a account, so you cant do £1000 from one nationwide account to another.

Thanks for this although my list was not intended to be exhaustive .

I did however think that all banks required the monthly pay in to come from an account with a different bank.

jimjames

RG2015 wrote: »

I did however think that all banks required the monthly pay in to come from an account with a different bank.

No they don't. Most do but not all. TSB being one that doesnt

xylophone

Most do but not all. TSB being one that doesnt

Neither does Lloyds or BOS.

eskbanker

RG2015 wrote: »

Are you saying that a few on this site disapprove or is this something you have heard elsewhere?

I have never come across anyone either on this site or elsewhere who disapprove of this practice. However, I am in a small minority (perhaps of one) who given the opportunity would never switch banks to get a switching payment (aka a bribe )

I was primarily thinking of the exchange of views in this thread from last week but am fairly sure I've seen similar views expressed before on other threads, although it's plausible that I'm conflating it with reference to your aversion to switching incentives, which I'd see as being in the same sort of territory....

Zero_Sum

xylophone wrote: »

Neither does Lloyds or BOS.

Neither does Halifax, but i guess that comes under BoS as theyre part of same group.