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  • FIRST POST
    • AlisonGray
    • By AlisonGray 10th Oct 15, 11:05 AM
    • 43Posts
    • 10Thanks
    AlisonGray
    Is Cycling Money through my accounts each month Illegal ?
    • #1
    • 10th Oct 15, 11:05 AM
    Is Cycling Money through my accounts each month Illegal ? 10th Oct 15 at 11:05 AM
    Help !, can someone please tell me the Legalities of this as I have just had a horrible idea that it might be looked upon as fraud or something and get my accounts closed or worse !.

    I have 8 accounts that I cycle money through each month from my Barclays account, I use my own money as each account has a healthy balance, and I never use a overdraft or go overdrawn because of this, my view is itís my own money, but I am not sure if the bank would share my view.

    I need to cycle money through each to get the higher rate of interest and other benefits etc, so I have divided it to 3 times a month, on the 1st, 15th and 22nd of each month:

    On the 1st I transfer £1000 to Lloyds and back to Barclays, another £1000 from Barclays to Clydesdale Bank and back to Barclays, then £1000 to Bank of Scotland for 1 vantage account and back to Barclays.
    On the 15th I transfer £2000 to HSBC (Advantage Account) then back to Barclays and £1000 to TSB then back to Barclays.
    On the 22nd I transfer £1000 to Bank of Scotland Vantage 2 then back to Barclays, then £1000 to Halifax Reward 1 and back to Barclays and then £1000 to Halifax Reward 2 and then back to Barclays.

    It is all automated with standing orders so I donít have to touch anything. But its £3000 3 times a month, thatís £9000 a month coming in to Barclays !, or £108,000 a year !, are they going to see it as £108,000 going in as Income !, if so £108,000 is a lot in a year !.

    So is this legal ?
Page 2
    • chambta
    • By chambta 10th Oct 15, 10:18 PM
    • 2,739 Posts
    • 1,011 Thanks
    chambta
    What a weird way of conducting your banking business, Why the hell does anyone need 8 current account lol. Banks may freeze accounts if they see a pattern.

    It's not like your earning interest funds.... Do you OP just like seeing money being sent about... Like a kid with sweets.
    Originally posted by paragon909
    It IS done to make money. Why else?
    • paragon909
    • By paragon909 10th Oct 15, 11:34 PM
    • 1,399 Posts
    • 1,396 Thanks
    paragon909
    I don't see how transferring 1000 or 2000 etc 3 times a month to current accounts is making you money....

    All your doing is moving money around from accounts
    • neilsedaka
    • By neilsedaka 10th Oct 15, 11:44 PM
    • 338 Posts
    • 101 Thanks
    neilsedaka
    I don't see how transferring 1000 or 2000 etc 3 times a month to current accounts is making you money....

    All your doing is moving money around from accounts
    Originally posted by paragon909
    It's to qualify for having the account in the first place and to qualify for the associated interest or bonus or cashback.
    • jennifernil
    • By jennifernil 11th Oct 15, 12:09 AM
    • 5,105 Posts
    • 2,131 Thanks
    jennifernil
    These current accounts pay 3%, 4% and 5% interest, why would you not think that worthwhile?

    OP.....if you have 2 or more accounts with the same bank, there is no need with most to fund from another bank, just transfer manually between your accounts.

    I have 3 BOS Vantage accounts, the £1000 just goes around them. It also goes through 3 Reward accounts.

    Then I have 2 sole TSB and 2 joint, the £500 goes round them.

    And I have 1 sole and 1 joint Club Lloyds, the £1500 just swaps between them.

    OH also has Halifax, Lloyds and TSB accounts.

    Santander is funded with £500 from our main joint Reward account, and I transfer £1750 to OH's HSBC. He sends £1725 straight back, and £25 to his ISA.

    We also have several monthly saver accounts and move 3% funds to them to earn 4%, 5% and 6%.
    Last edited by jennifernil; 11-10-2015 at 12:11 AM.
    • Archi Bald
    • By Archi Bald 11th Oct 15, 12:28 AM
    • 9,375 Posts
    • 7,432 Thanks
    Archi Bald
    What a weird way of conducting your banking business, Why the hell does anyone need 8 current account lol. Banks may freeze accounts if they see a pattern.

    It's not like your earning interest funds.... Do you OP just like seeing money being sent about... Like a kid with sweets.
    Originally posted by paragon909
    I don't see how transferring 1000 or 2000 etc 3 times a month to current accounts is making you money....

    All your doing is moving money around from accounts
    Originally posted by paragon909
    At first I thought you were being facetious but it appears you are actually dead serious and badly uninformed. I suggest you read this http://www.moneysavingexpert.com/savings/savings-loophole, and also the copious number of posts on the forum regarding multi-accounting.
    • chris_m
    • By chris_m 11th Oct 15, 8:09 AM
    • 7,269 Posts
    • 28,518 Thanks
    chris_m
    At first I thought you were being facetious but it appears you are actually dead serious and badly uninformed. I suggest you read this http://www.moneysavingexpert.com/savings/savings-loophole, and also the copious number of posts on the forum regarding multi-accounting.
    Originally posted by Archi Bald
    I presume that Paragon909 hasn't twigged that we are actually leaving the maximum interest-earning sum of money in the accounts, to earn the interest, and simply moving money back and forth between them to meet the funding requirements to qualify for the interest.
    • Ed-1
    • By Ed-1 11th Oct 15, 1:04 PM
    • 2,526 Posts
    • 1,323 Thanks
    Ed-1
    I don't see how transferring 1000 or 2000 etc 3 times a month to current accounts is making you money....

    All your doing is moving money around from accounts
    Originally posted by paragon909
    There's 2 ways that moving money between your accounts is making money:

    1) in an interest-paying current account (e.g. TSB Classic Plus it pays interest of 5% every month on daily balances of up to £2000 as long as £500 goes into the account at some point during that month). If you have £2000 each day in Classic Plus account and transfer £500 in and out of the account at some point in the month you'll get 5% each day on the £2000.

    2) by exploiting banks' different cut-off times for calculating interest (e.g. Santander calculates interest each day on the balance of an account at approximately 8:20pm. Lloyds calculates interest on the balance of an account at midnight. So if you have your money in a Santander account at 8:20pm and then move it to Lloyds before midnight you've made interest twice on the same money on the same day).

    Both are perfectly legal as long as you are doing it for the above intentions. However if you do (2) daily it can set banks' money laundering systems off, as one of my friends found out, which can lead to closure of accounts and at worst a CIFAS (fraud) marker if banks see you doing it for different reasons.
    Last edited by Ed-1; 11-10-2015 at 1:06 PM.
    • slopemaster
    • By slopemaster 11th Oct 15, 6:27 PM
    • 1,488 Posts
    • 757 Thanks
    slopemaster
    exploiting banks' different cut-off times for calculating interest (e.g. Santander calculates interest each day on the balance of an account at approximately 8:20pm. Lloyds calculates interest on the balance of an account at midnight. So if you have your money in a Santander account at 8:20pm and then move it to Lloyds before midnight you've made interest twice on the same money on the same day)..
    Originally posted by Ed-1
    Wow, I didn't know that
    • Kernel Sanders
    • By Kernel Sanders 11th Oct 15, 6:33 PM
    • 3,429 Posts
    • 1,407 Thanks
    Kernel Sanders
    What a weird way of conducting your banking business, Why the hell does anyone need 8 current account lol. Banks may freeze accounts if they see a pattern.

    It's not like your earning interest funds.... Do you OP just like seeing money being sent about... Like a kid with sweets.
    Originally posted by paragon909
    What a weird post. You must be a bit simple if you don't realize that this is the way to maximize interest, instead of getting none!
    • Man on fire
    • By Man on fire 11th Oct 15, 8:54 PM
    • 244 Posts
    • 369 Thanks
    Man on fire
    What a weird way of conducting your banking business, Why the hell does anyone need 8 current account lol. Banks may freeze accounts if they see a pattern.

    It's not like your earning interest funds.... Do you OP just like seeing money being sent about... Like a kid with sweets.
    Originally posted by paragon909
    Why settle for just one of these; 5% interest, £5 reward, cashback on bills, or free European travel insurance, when you can have them all?
    • jimjames
    • By jimjames 11th Oct 15, 8:57 PM
    • 13,176 Posts
    • 12,165 Thanks
    jimjames
    What a weird way of conducting your banking business, Why the hell does anyone need 8 current account lol. Banks may freeze accounts if they see a pattern.

    It's not like your earning interest funds.... Do you OP just like seeing money being sent about... Like a kid with sweets.
    Originally posted by paragon909
    You seriously have no idea about how to get interest in your accounts? Despite being on this forum? Bizarre!

    I've had £50k go through my account in a month and have 10 accounts. No issues so far. Oh and I get 5% interest on my account.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Kernel Sanders
    • By Kernel Sanders 11th Oct 15, 9:30 PM
    • 3,429 Posts
    • 1,407 Thanks
    Kernel Sanders
    You'll be going to jail for at least 10 years.

    Joined by about half of us on this forum.

    And Martin.
    Originally posted by robatwork
    You can just imagine us in prison. We'd be advising the drug barons where to keep their money and getting the lags to save their snout.
    • robatwork
    • By robatwork 11th Oct 15, 11:12 PM
    • 4,951 Posts
    • 5,704 Thanks
    robatwork
    You can just imagine us in prison. We'd be advising the drug barons where to keep their money and getting the lags to save their snout.
    Originally posted by Kernel Sanders
    I'm not sure those phrases have been in use since Porridge!
    • Kernel Sanders
    • By Kernel Sanders 12th Oct 15, 12:34 AM
    • 3,429 Posts
    • 1,407 Thanks
    Kernel Sanders
    in an interest-paying current account (e.g. TSB Classic Plus it pays interest of 5% every month .
    Originally posted by Ed-1
    I think our friend will need to have it explained that it's interest of 5% p.a. every month

    in an interest-paying current account (e.g. TSB Classic Plus it pays interest of 5% every month by exploiting banks' different cut-off times for calculating interest (e.g. Santander calculates interest each day on the balance of an account at approximately 8:20pm. Lloyds calculates interest on the balance of an account at midnight. So if you have your money in a Santander account at 8:20pm and then move it to Lloyds before midnight you've made interest twice on the same money on the same day).

    Both are perfectly legal as long as you are doing it for the above intentions. However if you do it daily it can set banks' money laundering systems off, as one of my friends found out, which can lead to closure of accounts and at worst a CIFAS (fraud) marker if banks see you doing it for different reasons.
    Originally posted by Ed-1
    Do you mean anti-laundering alarms were raised just because of the timing of the FPs?

    I'm not sure those phrases have been in use since Porridge!
    Originally posted by robatwork
    No doubt that's where I learned them but I don't care what the modern parlance is so naff orf Robatwork!

    RIP Ronnie Barker & Richard Beckinsale.
    Last edited by Kernel Sanders; 12-10-2015 at 12:47 AM.
    • Kernel Sanders
    • By Kernel Sanders 25th Oct 15, 6:54 PM
    • 3,429 Posts
    • 1,407 Thanks
    Kernel Sanders

    Santander calculates interest each day on the balance of an account at approximately 8:20pm. Lloyds calculates interest on the balance of an account at midnight. So if you have your money in a Santander account at 8:20pm and then move it to Lloyds before midnight you've made interest twice on the same money on the same day).
    Originally posted by Ed-1
    Does this apply on a Sunday, and do you know Bank of Scotland cut-off times? Would the time (17:45) on this link be for interest purposes?
    Last edited by Kernel Sanders; 25-10-2015 at 7:50 PM.
    • Ed-1
    • By Ed-1 25th Oct 15, 6:58 PM
    • 2,526 Posts
    • 1,323 Thanks
    Ed-1
    Does this apply on a Sunday, and do you know Bank of Scotland cut-off times?
    Originally posted by Kernel Sanders
    No. Santander has a cut-off time of around 8:20pm Monday to Saturday and then Sunday jumps forward to Monday's date (the next working day).

    Lloyds, Halifax, BOS and TSB are all midnight cut-off times Monday to Friday and then Saturday jumps forward to Monday's date (the next working day).

    But I warn you from experience that there is a high risk of losing all your accounts at once with any one bank through doing this every day.

    In my opinion, the best way of exploiting this is moving money from any of Lloyds, BOS or TSB on a Saturday (as by then interest has been banked for Saturday and Sunday) to Santander and then moving it back from Santander after 8:20pm on the Monday. That way you earn interest at Lloyds/BOS/TSB on Saturday, Sunday and Monday and at Santander on Saturday, Sunday and Monday. That's 3 days extra interest a week for two transactions. To get 'double' interest in the rest of the week you'd need to do two transactions a day and the danger here is that the bank perceive it as a money laundering risk and close all your accounts.
    Last edited by Ed-1; 25-10-2015 at 7:03 PM.
    • ceredigion
    • By ceredigion 25th Oct 15, 7:27 PM
    • 3,212 Posts
    • 4,480 Thanks
    ceredigion
    Does this apply on a Sunday, and do you know Bank of Scotland cut-off times?
    Originally posted by Kernel Sanders


    Read
    http://stoozing.com/forum/YaBB.pl?num=1328446462
    Should keep you entertained as only 24 pages. It might also be prudent to keep all such "controversial" discussions on the stoozing forum as it doesn't generate as much traffic.
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