Can I dripfeed in money like this?

Energize

If I open a Kaupthing Edge savings account at 6.5%, can I then transfer £500p/m to an A&L premier account and then then transfer £250 to the 12% regular savings account and £250 back the to Kaupthing account?

YorkshireBoy

Yes, but...

1. A&L state that the £500 (or more) monthly funding has to be your 'main income', otherwise they may close the regular saver, and

2. Have you considered/calculated the benefit of all that messing about?

Energize

About £100 extra maybe? I haven't worked it out. I'd have £3,600 at the start.

LongTermLurker

YorkshireBoy wrote: »

Yes, but...

1. A&L state that the £500 (or more) monthly funding has to be your 'main income', otherwise they may close the regular saver, and

In another A+L post, someone has said SHE's almost gone a full year now without paying HER salary in - still, I think it's a big risk to take. (*)

2. Have you considered/calculated the benefit of all that messing about?

Bearing in mind the £250 which is moving backwards and forwards will only be earning 1% while in the Premier a/c and nothing while in transit, I think OP would get more interest just leaving it with KE - even if it did pay, it would be a hell of a lot of work for a few quid.

Energize wrote: »

About £100 extra maybe? I haven't worked it out. I'd have £3,600 at the start.

(edit) Let's say you move £500 on Monday and it reaches A+L on Thurs. That's 3 days with £500 in limbo. Also assume that £250 moves into the Reg Sav a/c on Thurs, and you immediately transfer the other £250 back = £250 @ about 5 days in limbo. During that time, if the second £250 earns any interest, it will all be at 1% (premier a/c rate). And all of that has to be done manually, as KE can't support automatic withdrawals. It does seem a lot of work for questionable results.

I'm not convinced about the benefit of the "drip feed from lump sum" idea, unless it's someone for whom every pound is significant.

(* Edit to correct The Fiddler's sex )

Energize

LongTermLurker wrote: »

Bearing in mind the £250 which is moving backwards and forwards will only be earning 1% while in the Premier a/c and nothing while in transit, I think OP would get more interest just leaving it with KE - even if it did pay, it would be a hell of a lot of work for a few quid.

With the new transfer system though coming in on the 27th, transfers will only take 1-5 hours max so the interest lost would be negligible, and I don't pay tax on the savings either.

LongTermLurker

Energize wrote: »

With the new transfer system though coming in on the 27th, transfers will only take 1-5 hours max so the interest lost would be neglible, and I don't pay tax on the savings either.

Assuming both A+L and KE support it - there are posts suggesting that not all banks will support that straight away. I'm not trying to knock the idea, but I'd be sceptical about the value. I'd be surprised if the increase was as high as £100, but maybe someone will come & work out the maths? (Keep your fingers crossed - when I've read that line in other posts someone usually claims the challenge within the hour )

And don't forget the risk that they may close the 12% a/c for not paying in a main income.

The_Fiddler_2

Define main income? - Main income is not necessarily a salary going into a bank account. I am SHE (referenced above) who transfers the £500. As I said I have received part of my interest already and only have one payment to go.

Maybe they are keeping me sweet because I have a chunk in the e-Saver

To the OP you might want to consider depositing in that account - has the same rate as Kaupthing Edge although there are conditions attatched.

YorkshireBoy

The_Fiddler wrote: »

As I said I have received part of my interest already and only have one payment to go.

I think 'main income' is a new condition...certainly within the last 12 months your account has been running...so it wouldn't be fair to compare your situation to that of the OP.

At least if they're reminded what *could* happen, they're able to make a more informed decision.

Energize

Since I don't have a job, the interest from my other savings account, would technically be my main income.

EDIT - The gain would be £97 resulting in an AER of 9.19% on my £3600.

jonesMUFCforever

2 Questions - Does Kaupthing allow faster payments?
If so will there be a daily limit until the system is fully functionable and stable?

If not then your money will go back and forth using BACS so I can see that you may well miss out on interest for up to 6 days per month.

The_Fiddler_2

YorkshireBoy wrote: »

I think 'main income' is a new condition...certainly within the last 12 months your account has been running...so it wouldn't be fair to compare your situation to that of the OP.

At least if they're reminded what *could* happen, they're able to make a more informed decision.

Main income is not a new condition, it was there when I applied, but as I said how do you define main income - it ain't necessarily a monthly salary