Santander /Cahoot cut off times for interest

s71hj

Does anybody happen to know what time these 2 use to look at your balance and calculate daily interest? I'm trying to keep my Edge saver at £4000 to maximise interest and I've been assuming that as long as it is at this balance by 8.15 pm, which I believe is the faster payment cut off time it earns interest for that day but on this basis at 6% I'd be assuming (and this may be wrong, I'm no expert) I'd get around £20 a month but my monthly interest has been appx £14 so I wonder if I'm making an incorrect assumption somewhere in this!!!!

eskbanker

Are you still within the initial 12 months?

If so, the gross rate paid is 5.84% (it's the AER that's 6%, but that's dependent on compounding and can't be achieved on a maxed-out account), and monthly interest should average out at £19.47 if the account is full constantly, but if it's filled throughout the month then you wouldn't need to be concerned about cutoff times?

s71hj

https://forums.moneysavingexpert.com/discussion/comment/81950813#Comment_81950813

Yes, still in 1st 12 months. I feed daily dds and SOs and cash needs from my Santander edge up by moving money into it from the edge saver and then top up the edge saver to £4000 most days by moving money from other lower paying savings accounts evenings before 8.15 pm.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81950818#Comment_81950818

Santander's general Ts & Cs mention 8pm rather than 8:15, so if you're using those last 15 minutes that would make a difference:

We work out the interest we’ll pay you and, if you have an overdraft, any interest or fees you need to pay us on the state of your account at the end of each day. We usually do this after 8pm.
This means if you pay money into your account electronically after then, you’ll be able to use it immediately but it won’t earn interest (or reduce any overdraft interest) until the next day

although even then it's not actually going as far as guaranteeing that payments made by 8pm will earn interest.

Ed-1

https://forums.moneysavingexpert.com/discussion/6662799/santander-cahoot-cut-off-times-for-interest

The exact time they use is 8:17pm. I experimented with transactions and dates around this time to pinpoint it.

s71hj

https://forums.moneysavingexpert.com/discussion/comment/81950831#Comment_81950831

Brilliant thanks. Is there a particular time it needs to stay in there until do you know?

gt94sss2

https://forums.moneysavingexpert.com/discussion/comment/81950839#Comment_81950839

If a financial institution identifies customers who they suspect regularly/deliberately moves money around to benefit from "extra" interest as different organisations having different cut off times, expect your accounts to be closed with extreme prejudice by them.

surreysaver

I'll move money out of my Edge Saver after 8.30pm into my current account the night before my standing orders are due out (or any other large payments). I wouldn't consider this fiddling?

I could understand it being considered fiddling if you were trying to earn two or more lots of interest on the same amount of money, but then you would have to be doing it daily for this

wmb194

https://forums.moneysavingexpert.com/discussion/comment/81951659#Comment_81951659

I wouldn't worry about that but it's when there's a clear pattern of, 'shenanigans' e.g., deposits and withdrawals before and after the cutoff most days.

s71hj

https://forums.moneysavingexpert.com/discussion/comment/81951659#Comment_81951659

Absolutely what I do and the reason for my question

where_are_we

https://forums.moneysavingexpert.com/discussion/comment/81951659#Comment_81951659

We have a large amount > £10k going to SO`s funding RS`s at the beginning of each month. We then get a text warning in the morning of insufficient funds to cover these payments and asking to move money into current account by 2pm. We then move money (before 2pm) from Cahoot Sunny Day Savers to cover these payments. If we changed to moving money out of CSDS`s at around 10pm the night before would this incur any loss of interest compared to moving the money the next morning?