Earning interest twice

surreysaver

If I make a transaction on my Bank of Scotland current account at a weekend, it is dated the next working day.
If I make a transaction on my Tesco current account, it is dated that day.
Does it then follow if I transfer £2k from my BoS account to my Tesco account on a Saturday, does that £2k earn 1% interest for two days in both accounts?

Jonathan_Kelvin

You may, but if you make a habit of this then you can expect both accounts to be shut down, and find that for the rest of your days you’ll never be welcomed back.

st999

£2k earn 1% interest for two days in both accounts?

No! it will earn 1% divided by 365 times 2 interest, maybe.

surreysaver

st999 wrote: »

No! it will earn 1% divided by 365 times 2 interest, maybe.

Yes, I know. I should have expressly written 1% aer to satisfy the pedants!

surreysaver

Jonathan_Kelvin wrote: »

You may, but if you make a habit of this then you can expect both accounts to be shut down, and find that for the rest of your days you’ll never be welcomed back.

Why would the accounts be shut down?

born_again

More that it's the way the system updates and shows on statements.
Not really going to get rich on 1% interest for 1 day. What will it be a % of 1p?
Even if you did it every weekend.

Can't see them shutting a account down if you did this. It will be what many people do all the time.

Odds on no extra interest.

surreysaver

born_again wrote: »

More that it's the way the system updates and shows on statements.
Not really going to get rich on 1% interest for 1 day. What will it be a % of 1p?
Even if you did it every weekend.

Can't see them shutting a account down if you did this. It will be what many people do all the time.

Odds on no extra interest.

Nearly £8 a year if I do it for the full £3k a year Tesco pay interest on. All adds up. Might try it for a month and see what happens

YorkshireBoy

Lots of people on here do what you have posted.
Some do it with Santander - £20K per day as well as weekends.
So that's £20K making around 3% AER, or £60K if there are two of you.
All you need to know is the respective banks cut-off times (which have been posted on here previously).

And, yes, some have had their relationships terminated.

Would I do it? No.

surreysaver

YorkshireBoy wrote: »

Lots of people on here do what you have posted.
Some do it with Santander - £20K per day as well as weekends.
So that's £20K making around 3% AER, or £60K if there are two of you.
All you need to know is the respective banks cut-off times (which have been posted on here previously).

And, yes, some have had their relationships terminated.

Would I do it? No.

Why wouldn't you do it? The risk of your accounts being closed?
Why would they close accounts due to this - surely its no different to taking advantage of banks in other ways (direct debits, cycling money between banks, switch incentives etc). There's nothing illegal or against T&Cs?
I wouldn't open accounts specifically to do this - just make use of existing accounts

YorkshireBoy

surreysaver wrote: »

Why wouldn't you do it? The risk of your accounts being closed?

Yes, along with credit cards and any savings accounts I may hold with them.

Why would they close accounts due to this - surely its no different to taking advantage of banks in other ways (direct debits, cycling money between banks, switch incentives etc).

There's no comparison in my opinion.

There's nothing illegal or against T&Cs?

With Santander, condition 17.2 is all they need to invoke. If they wanted to qualify their decision they may quote condition 17.3(c) or 17.3(d) or even 17.3(e). In practice, however, all they need to do is start the letter "Following a review of your account conduct..."

I wouldn't open accounts specifically to do this - just make use of existing accounts

Well that's OK then.

masonic

surreysaver wrote: »

Why wouldn't you do it? The risk of your accounts being closed?

That's enough reason for me not to do it. You never know when the ability to open an account at a particular bank is going to be important/worthwhile.

Why would they close accounts due to this - surely its no different to taking advantage of banks in other ways (direct debits, cycling money between banks, switch incentives etc). There's nothing illegal or against T&Cs?

Those are questions for your banks - the ones you are considering bouncing money between. People have asked in the past about the other things you mentioned and been told whether they are considered permissible or not (I've been actively encouraged to find dummy DDs to fulfil the terms of a certain reward scheme for example). Banks can usually respond to those other things by a minor change to their T&Cs or by time-limiting their offer. Whereas it would be more difficult to shut down the loophole being discussed here - and would require the cooperation of multiple banks.

If you do go ahead and ask your banks if they would consider it acceptable to do as you intend and they say yes, that will be very useful if they later decide otherwise.