Current Account Funding

lmallett

I have a Lloyds Club Account which pays interest and perks and am happy with it.
However, it has a minimum funding amount which has to be paid in each calendar month. If the minimum amount is not paid then I have to pay a £3.00 charge.
I did not have a problem with the minimum monthly charge whilst in employment because my monthly wages paid in each calendar month was greater than the minimum.
I have recently retired and have income sources from multiple pensions which are greater than the minimum monthly requirement.
NO PROBLEMS SO FAR.
However, one of the pension contributions is from the PPF(Pension Protection Fund).
This is causing me a problem because the PPF pay monthly in advance on the 1st month and the 1st month does not always fall on a banking day.
When 1st month is not a banking day they pay before 1st month.
Several times a year this means the pension payment I receive from PPF will not fund my Lloyds account in the months where 1st month is not a banking day which would leave my account under funded..

To overcome this I have to keep 1 months PPF payment in reserve and recycle it through another account to make sure my Lloyds account is funded by PPF amount in months when 1st month is not a banking day.
I HOPE ANYONE READING HAS FOLLOWED ME SO FAR.

My question to the Forum is:
Is there a simple solution to the problem which does not cost me money?

I want to keep a good bank account which pays interest and perks.
I don`t want to have to pay £3.00 pm for falling short of the minimum funding amount.
I don`t want to have to keep 1 months PPF pension in reserve(Meaning I cannot spend it or invest it)for the next 25 years.
I did a quick calculation on 1 months PPF pension invested at 7% and compounded over say 25years.Its substantial.

I`ve contacted the PPF to complain that their payment schedule means that some calendar months my account is not funded and it has a cost implication to me.
They have not accepted that their payment schedule costs members money.
They have suggested I get another bank account.

I would appreciate feed back from other PPF members and other persons who are funded by companies/institutions who aim to pay 1st month(which is not always possible)on how they overcome the problem WITHOUT COST(we all want to save money). 

Daliah

lmallett said:

To overcome this I have to keep 1 months PPF payment in reserve and recycle it through another account to make sure my Lloyds account is funded by PPF amount in months when 1st month is not a banking day.

Not sure why you need to keep 1 month's worth of money in reserve. It takes seconds to pay the same money in and move it out again ( / to move it out and back again).

cx6

if you have another bank account somewhere simply send money to lloyds and then straight back again should you need to.

Zanderman

You're overthinking this.

Whatever the shortfall created by a non-payment from PPF is, you can make it up it multiple ways, without getting too troubled.

If it is, say, £500, you could pay in £500 from elsewhere each month - and straight back again.

If you don't have £500 elsewhere you could pay in, say, £100 and straight back again, 5 times.

Etc.

You're not going to change PPFs behaviour to suit your personal needs.

You just need to look creatively on how to service the Lloyds issue of avoiding £3 a month.  

Which won't be a problem very often anyway.

wiseonesomeofthetime

I have a weekly standing order where £400 goes out of Lloyd's every Wednesday to Halifax Reward account and is returned by SO every Thursday.

Zero effort. Both banks meet criteria and Wednesday and Thursday are not usually impacted by public holidays. 

eskbanker

lmallett said:

I`ve contacted the PPF to complain that their payment schedule means that some calendar months my account is not funded and it has a cost implication to me.
They have not accepted that their payment schedule costs members money.
They have suggested I get another bank account.

Look on the bright side, you'll have cheered up a dull day for some contact centre workers, who will have enjoyed rolling around the floor laughing at your bizarre assertion that their organisation is somehow at fault for paying you earlier than they're obliged to!

penners324

I used to fund a Lloyds account with an SO that went in and an SO that went out. The money was in the Lloyds account for about 5 seconds usually.

No charges and kept a zero balance 

pjread

Would seem simple enough to "move" the payment later if you want it on autopilot - ask PPF to pay into some other account, then set a standing order for the 1st or 2nd (or whatever) of the month to Lloyds?  At worst you "lose" a day or two of use, which seems to be the day or two later you want them to pay you anyway. 

General_Grant

If you don't already have a savings account with Lloyds you could open a simple one (£1 is enough for an account paying 0.01%).  Transfer any early payment to that account and back to the Club Lloyds account early in the month you want it to count.