Savings Account Tied To Current Account?

jimjames wrote: »

Ideal one would be Tesco. Keep £3000 in current account at 3% and move rest over to their savings account if you're not bothered about getting most interest from other accounts

But do they actually have an automatic sweep option as per OP request or do *you* have to move the money manually and then back again if you wanted to spend the money?

OP, I've not had this feature with my personal accounts before (though haven't used a massive wide range of banks). I have corporate clients who have an auto sweep facility at a predetermined value from their main operating account to a higher interest account (RBS is an example), but this is rarer in personal accounts.

For example, the ones like Tesco or Nationwide or Lloyds etc who have a reasonable rate of interest up to a certain account balance and much lower rates above that level, will have the expectation that most customers will either let their balances fall below the level from time to time and miss out on some of the eyecatching rate on offer, or will let their balances go above the level and not be earning much or anything on the excess. If you could make the most of the system by having an auto sweep facility so they pretty much always paid you the max, that would be quite expensive for them. So more likely to only find it in places that don't have great rates on current accounts anyway, e.g. FD mentioned above.

Yorkshire Bank's 'B' account does this.

Also Yorkshire Banks signature current account:


Sweeping helps you earn interest on funds that you don’t need on a day-to-day basis. It does this by automatically managing the balances on your Signature Current Account and Signature Savings Account. There is no fee for using the sweeping service.
You simply set a minimum and maximum balance on your Signature Current Account. When either of these limits is reached, we automatically sweep the funds to or from your Signature Savings Account. Funds sweeping happens overnight.

• If your Signature Current Account balance is higher than your maximum limit, the excess funds are swept to your Signature Savings Account.

This means you earn interest on the additional funds in your Signature Savings Account.

• If your Signature Current Account balance falls below your minimum limit, funds will be swept from your Signature Savings Account into your Signature Current Account.

This will return your Signature Current Account balance back to the minimum limit you have set. If you don’t have enough funds in your Signature Savings Account to return your Signature Current Account back to the minimum limit, any funds in your Signature Savings Account will still be swept across.