Daisy-chaining minimum monthly deposits

MattK1990

Hi everyone,

I've got a question regarding minimum monthly deposits for current accounts.

I want to get the bonus interest rate in several current accounts at once, which have minimum monthly deposits. Is there anything stopping me "daisy-chaining" payments between these accounts using standing orders? 

i.e. if I have 3 bank accounts which each give x% on up to £y, if you deposit £1000 monthly. Is there anything stopping me keeping £y in each account, then having £1000 that I circulate round with standing orders every month? 

Cheers.

eskbanker

Many on here do exactly that, no problem at all....

PRAISETHESUN

No issues with what you propose. Do something to the effect of  Account A --> Account B --> Account C --> Account D --> etc --> Account A. You can do them all manually by faster payment, or if it can be automated if you use standing orders.

Only caveat would be to check that if your accounts are all with the same bank, that internal transfers are acceptable for this. Otherwise you'll need to bounce money in/out via an external account, eg. Account A (external) --> Account B --> Account A --> Account C --> Account A, etc

jpsman

I'm planning to do something similar to the OP. With interest rates as they are now, I'm keen to avoid even one day in a low-rate current account. So how long does a deposit need to be in an account, or could I withdraw it immediately?

eskbanker

jpsman said:

I'm planning to do something similar to the OP. With interest rates as they are now, I'm keen to avoid even one day in a low-rate current account. So how long does a deposit need to be in an account, or could I withdraw it immediately?

Immediate is fine if the requirement is simply to deposit a minimum monthly amount.

jpsman

eskbanker said:

jpsman said:

I'm planning to do something similar to the OP. With interest rates as they are now, I'm keen to avoid even one day in a low-rate current account. So how long does a deposit need to be in an account, or could I withdraw it immediately?

Immediate is fine if the requirement is simply to deposit a minimum monthly amount.

Yep, that's what I meant. Thanks!

jimjames

jpsman said:

I'm planning to do something similar to the OP. With interest rates as they are now, I'm keen to avoid even one day in a low-rate current account. So how long does a deposit need to be in an account, or could I withdraw it immediately?

My normal reply is to ask if the bank puts a restriction on how soon you can spend your wages when they're paid in. Mine doesn't so in exactly the same way you can move it as soon as you want. It's also possible to meet the requirement with a smaller amount paid multiple times. So if the requirement is £1500 you can pay in £500 three times.

MattK1990 said:

i.e. if I have 3 bank accounts which each give x% on up to £y, if you deposit £1000 monthly. Is there anything stopping me keeping £y in each account, then having £1000 that I circulate round with standing orders every month?

Just be aware that different banks operate different processing days for standing orders, some will pay on weekend or BH but others will only do next working day. That might affect the funding for your accounts.

oldfella

generally I do these transfers manually, allows for holidays and unexpected events

jpsman

jimjames said:

jpsman said:

I'm planning to do something similar to the OP. With interest rates as they are now, I'm keen to avoid even one day in a low-rate current account. So how long does a deposit need to be in an account, or could I withdraw it immediately?

My normal reply is to ask if the bank puts a restriction on how soon you can spend your wages when they're paid in. Mine doesn't so in exactly the same way you can move it as soon as you want. It's also possible to meet the requirement with a smaller amount paid multiple times. So if the requirement is £1500 you can pay in £500 three times.

It's a Club Lloyds. So, in theory, I could put in £500, then immediately move it to another current account, then move it back into my Club Lloyds immediately, move it back out immediately then in again, etc? Would that look a bit dodgy to one or both banks?

surreysaver

jpsman said:

jimjames said:

jpsman said:

I'm planning to do something similar to the OP. With interest rates as they are now, I'm keen to avoid even one day in a low-rate current account. So how long does a deposit need to be in an account, or could I withdraw it immediately?

My normal reply is to ask if the bank puts a restriction on how soon you can spend your wages when they're paid in. Mine doesn't so in exactly the same way you can move it as soon as you want. It's also possible to meet the requirement with a smaller amount paid multiple times. So if the requirement is £1500 you can pay in £500 three times.

It's a Club Lloyds. So, in theory, I could put in £500, then immediately move it to another current account, then move it back into my Club Lloyds immediately, move it back out immediately then in again, etc? Would that look a bit dodgy to one or both banks?

jpsman said:

jimjames said:

jpsman said:

I'm planning to do something similar to the OP. With interest rates as they are now, I'm keen to avoid even one day in a low-rate current account. So how long does a deposit need to be in an account, or could I withdraw it immediately?

My normal reply is to ask if the bank puts a restriction on how soon you can spend your wages when they're paid in. Mine doesn't so in exactly the same way you can move it as soon as you want. It's also possible to meet the requirement with a smaller amount paid multiple times. So if the requirement is £1500 you can pay in £500 three times.

It's a Club Lloyds. So, in theory, I could put in £500, then immediately move it to another current account, then move it back into my Club Lloyds immediately, move it back out immediately then in again, etc? Would that look a bit dodgy to one or both banks?

Club Lloyds requirement is £2k now, so you'd have to do it a fourth time

jpsman

surreysaver said:

jpsman said:

jimjames said:

jpsman said:

I'm planning to do something similar to the OP. With interest rates as they are now, I'm keen to avoid even one day in a low-rate current account. So how long does a deposit need to be in an account, or could I withdraw it immediately?

My normal reply is to ask if the bank puts a restriction on how soon you can spend your wages when they're paid in. Mine doesn't so in exactly the same way you can move it as soon as you want. It's also possible to meet the requirement with a smaller amount paid multiple times. So if the requirement is £1500 you can pay in £500 three times.

It's a Club Lloyds. So, in theory, I could put in £500, then immediately move it to another current account, then move it back into my Club Lloyds immediately, move it back out immediately then in again, etc? Would that look a bit dodgy to one or both banks?

jpsman said:

jimjames said:

jpsman said:

I'm planning to do something similar to the OP. With interest rates as they are now, I'm keen to avoid even one day in a low-rate current account. So how long does a deposit need to be in an account, or could I withdraw it immediately?

My normal reply is to ask if the bank puts a restriction on how soon you can spend your wages when they're paid in. Mine doesn't so in exactly the same way you can move it as soon as you want. It's also possible to meet the requirement with a smaller amount paid multiple times. So if the requirement is £1500 you can pay in £500 three times.

It's a Club Lloyds. So, in theory, I could put in £500, then immediately move it to another current account, then move it back into my Club Lloyds immediately, move it back out immediately then in again, etc? Would that look a bit dodgy to one or both banks?

Club Lloyds requirement is £2k now, so you'd have to do it a fourth time

Yes, I know, thanks - but in theory that would work and not appear dodgy to either bank?