moving money

333rocky333

what would be the best way to move say £30,000 between savings accounts, without losing too much interest.

I can go direct debit acc 1 to bank,then bank to acc 2, but seems to take days.
Is it worth paying to move it faster.
using the sort codes can I move it direct for free, bypassing the bank.
Many thanks.

Lokolo

The only way you can make it go fast is:

1. use the same banks, so HSBC --> HSBC, which is usually done straight away.
2. pay for CHAPS (which is 1 day).
3. wait til May when faster BACS is available (but not all banks are going to be doing this).

or you can just wait 3-5 working days and not worry about a thing...

TaxGeek

£30,000 at 5% interest would mean losing £20 if it takes 5 days....less tax, potentially £4 or £8, so not sure it would be worth paying.

liitleblackcat

CHAPS usually costs about £25 so it may be worth it if you have to make two moves, compared with the loss if interest. Some savings account allow you to move to any other account directly (using the sort code and account number of the recipient bank) but some only let you transfer to to your linked account. Depends what you have.

If you have to move twice with 3 working day between each, then you might just manage it in 5 days if you start on a Monday, but it could take 6 or 7 days if your first move is on another day of the week. I always move money on a Monday to avoid losing interest over a weekend.

Mikeyorks

333rocky333 wrote: »

A) I can go direct debit acc 1 to bank

then bank to acc 2, but seems to take days.

You won't lose any interest on A (no 'float' on DDs). So you really only need to consider B ...... therefore unlikely to be beneficial to CHAPS it.

You can go 'acc 1' direct to 'acc 2' ...... if you can set up an SO or 'bill payment'.

333rocky333

Thanks all
I have done a trial £5 to see how long it takes.
I was thinking of moving the bulk on a monday like you say.