Daisy-chaining minimum monthly deposits

Eco_Miser

jpsman said:

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?

It might, so maybe move the £500 in and out once a week. but that might look suspicious too.

Generally, I avoid moving money into an account then immediately back to the account it came from, instead it goes via one or more other accounts.

eskbanker

jpsman said:
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?

That would typically be referred to as a hub and spoke model (where all transactions are either to or from one central account), rather than the daisy-chaining (where it's chain-shaped) that this thread was about.

where_are_we

We have been using the hub and spoke model for umpteen years, SO`s in and out on same day, never a problem though sometimes we would get a text warning of insufficient balance (we would keep only a small balance) to return the SO to hub, but we would ignore it as the required SO from hub hadn`t arrived yet but would do so later in the day.

But we have changed over to the manual daisy-chain model because of the rise in interest rates. The hub current account earns no interest and we had to keep a permanent balance of a little over £500 to fund 30 SO`s with at least one each day of the month (we have 6 Halifax and 3 Lloyds current accounts between us).

With increasing EA interest rates, now at 4.6% this £500 could earn £23 interest per annum in an EA account.

We now manually daisy chain all in one day with the money coming from the EA account early in the day and returning later in the day so no loss of interest.

jpsman

I'm now thinking of setting up an SO for 2k from a higher interest bank into my Club Lloyds current account for just before the end of the month, then an SO at the beginning of the month from there to fund my Club Lloyds Monthly Saver, with another SO from my Club Lloyds current account moving the remainder out again to the original higher interest bank.

I'll lose just a few days' interest on the 2k that way. Does that sound feasible?

flaneurs_lobster

jpsman said:

I'm now thinking of setting up an SO for 2k from a higher interest bank into my Club Lloyds current account for just before the end of the month, then an SO at the beginning of the month from there to fund my Club Lloyds Monthly Saver, with another SO from my Club Lloyds current account moving the remainder out again to the original higher interest bank.

I'll lose just a few days' interest on the 2k that way. Does that sound feasible?

Perfectly feasible. Or you could do the whole thing manually on the First and lose no interest at all. 

I fund 6 current accounts and a dozen regular savers on the 1st of the month (hub/spoke), takes about an hour.  

PloughmansLunch

jpsman said:

I'm now thinking of setting up an SO for 2k from a higher interest bank into my Club Lloyds current account for just before the end of the month, then an SO at the beginning of the month from there to fund my Club Lloyds Monthly Saver, with another SO from my Club Lloyds current account moving the remainder out again to the original higher interest bank.

I'll lose just a few days' interest on the 2k that way. Does that sound feasible?

I do both at the start of the month to avoid any possible risk of late incoming payments not being counted against the Club Lloyds fee reimbursement

Sea_Shell

Did I read that the Club Lloyds payment in requirement could even be internal between Lloyds accounts??

Is that right?     

I'm due to have a LRS mature, so if it transfer that to the CL account, it will count?

ColdIron

Sea_Shell said:

Did I read that the Club Lloyds payment in requirement could even be internal between Lloyds accounts??

Is that right?    

Yes it is  

Jami74

My daisy chain is 8 banks long. I do it all on the first of the month. On a week day it takes about ten minutes for the money to go round and the remainder to end up back where it started, on the weekend it's sometimes a bit longer but only by a few minutes. I have done the chain more than once straight away in months where I didn't have quite enough to fulfill all of the banks requirements. I have the chain written on a sticky note and cross each one off as I go so I don't get confused, most of the banks in the chain only have one or two payees so it's easy to know which one the money goes to next - it looks like this:

£2000 Co-op to Lloyds (leave £400 in Lloyds)

£1600 Lloyds to RBS (leave £200 in RBS)

£1400 RBS to Barclays (leave £0 in Barclays)