Earning interest twice

gt94sss2

As has been said above, banks actively close accounts once their systems see you doing this on a regular basis. Banks consider this abuse and against their T&C.

There was a thread on a different forum years ago where some used to do this and they soon found they started getting letters terminating their banking relationships

Ballard

surreysaver wrote: »

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

Is it as much as £8? I make 1% of £2,000 for 114 days (to include bank holidays) £6.25. Regardless, it seems like a lot of hassle with a chance of ruining a banking relationship for the sake of (almost) the price of a couple of beers.

Edit: sorry, I’ve just seen that you’re talking about £3,000. In that case your £8 is a pound or so out as it’d be £9.36. I stick by my logic above though.

surreysaver

Ballard wrote: »

Is it as much as £8? I make 1% of £2,000 for 114 days (to include bank holidays) £6.25. Regardless, it seems like a lot of hassle with a chance of ruining a banking relationship for the sake of (almost) the price of a couple of beers.

£3k is the maximum interest bearing amount you can hold in Tesco's current account. The reason why I was asking was to obtain people's opinions as to whether this is feasible or not. This is a money saving forum after all...

@YorkshireBoy - from your comments regarding bank cut off times, does that imply that there are those who move money around on a daily basis, rather than just for weekends like I'm proposing? All I was intending to do was move £3k from my NatWest Savings Builder on Saturdays, and moving it back the following Monday. Could I presume there is little risk in me doing this?

YorkshireBoy

surreysaver wrote: »

@YorkshireBoy - from your comments regarding bank cut off times, does that imply that there are those who move money around on a daily basis, rather than just for weekends like I'm proposing?

Yes, as I said earlier in post #8. It would be wrong to name them on here. If they're happy to post themselves I'm sure they will do so when they see the thread.

All I was intending to do was move £3k from my NatWest Savings Builder on Saturdays, and moving it back the following Monday. Could I presume there is little risk in me doing this?

You could presume that, yes. But please come back and let us know if you were wrong to presume that.

Ed-1

surreysaver wrote: »

Why would the accounts be shut down?

It's because a high account turnover (lots of money in, lots of money out) triggers the bank's monitoring systems and they'd rather get rid then have to continually react to the system flagging this month after month. It also increases your risk to the bank. If you have several other transactions going on in between these transactions it could look like the 'layering' stage of money laundering. Lloyds reacts to doing this daily by sending their risk assessment 60 day closure letter. But there really is no need to run an account like this. Doing it every weekend should be less of a problem.

surreysaver

Ed-1 wrote: »

It's because a high account turnover (lots of money in, lots of money out) triggers the bank's monitoring systems and they'd rather get rid then have to continually react to the system flagging this month after month. It also increases your risk to the bank. If you have several other transactions going on in between these transactions it could look like the 'layering' stage of money laundering. Lloyds reacts to doing this daily by sending their risk assessment 60 day closure letter. But there really is no need to run an account like this. Doing it every weekend should be less of a problem.

I waa going to say! I must run £20k or so through my accounts at month end/beginning to ensure that I have enough for my standing orders at the beginning of each month. So you reckon an extra £2 or 3k a week should be okay?

Ed-1

surreysaver wrote: »

I waa going to say! I must run £20k or so through my accounts at month end/beginning to ensure that I have enough for my standing orders at the beginning of each month. So you reckon an extra £2 or 3k a week should be okay?

You'd probably get away with that but is it really worth the hassle?

surreysaver

Ed-1 wrote: »

You'd probably get away with that but is it really worth the hassle?

I'd be logging into the apps anyway. People on here chase around after far less! And the fun is in the chase, rather than the reward

ceredigion

Not saying a word .

Jonathan_Kelvin

surreysaver wrote: »

Why would the accounts be shut down?

Because you are in effect cheating the system by being paid interest in the same amount in two places. Looking to game the cutoff time like this isn’t what the banks want, so, as ai said, you could well find that both shut the account, make a note of you having tried to have them over, and find that you are never again welcomed to either group.