High interest current account question
Discussion
I've been looking into the interest rates offered by some of the newer current accounts but I have a question which seems like a fairly obvious one to ask and yet it isn't answered anywhere in their FAQs or Ts & Cs.
Using the new TSB account as an example, if I open the account with a £2k transfer in and then in subsequent months pay in £500 to meet the minimum monthly payment, can I then transfer that £500 back out a day or two later and still be paid interest? I accept I won't be paid the interest on the monthly £500 payment because that takes the balance over the maximum allowed for the interest (and it would probably have to stay in the account for most of the month to qualify).
My ISA's interest rate isn't very good, and it will be oversubscribed very soon anyway, so what I would like to do is have several high interest current accounts and use a float of £1k to meet minimum payment requirements. You can hold two TSB Classic Plus accounts so I could transfer £500 to each for the minimum payment, then transfer that from TSB to a Nationwide FlexDirect to meet their minimum £1k payment, then put it in my ISA.
TLDR version: Do you need to keep the minimum monthly payment in the account in order to qualify for the interest?
Using the new TSB account as an example, if I open the account with a £2k transfer in and then in subsequent months pay in £500 to meet the minimum monthly payment, can I then transfer that £500 back out a day or two later and still be paid interest? I accept I won't be paid the interest on the monthly £500 payment because that takes the balance over the maximum allowed for the interest (and it would probably have to stay in the account for most of the month to qualify).
My ISA's interest rate isn't very good, and it will be oversubscribed very soon anyway, so what I would like to do is have several high interest current accounts and use a float of £1k to meet minimum payment requirements. You can hold two TSB Classic Plus accounts so I could transfer £500 to each for the minimum payment, then transfer that from TSB to a Nationwide FlexDirect to meet their minimum £1k payment, then put it in my ISA.
TLDR version: Do you need to keep the minimum monthly payment in the account in order to qualify for the interest?
No you dont need to leave it in there, I have this account (soon opening a second as you can have 2 per person) & transit my £500 through for all of about 10mins. I also transit my pay through (in the respective required amounts) a N'wide flex direct, N'wide flex account & a Halifax account.
At the moment I am using this account instead of an ISA for this year as cash ISA rates are so dire in comparisoncomparison & will review my options later in the year.
At the moment I am using this account instead of an ISA for this year as cash ISA rates are so dire in comparisoncomparison & will review my options later in the year.
Any of the HBOS group websites count internal transfers as meeting the funding requirement.
For example, I have 2x TSB high interest current accounts. Both are full and on 1 day a month I have a SO setup to transfer £500 from account A to B then back from B to A.
In reality it goes from B to A then B but as its all instant it makes no odds.
This satisfy the funding requirement then all I have to do is log on once a month and skim off the interest to another account.
For example, I have 2x TSB high interest current accounts. Both are full and on 1 day a month I have a SO setup to transfer £500 from account A to B then back from B to A.
In reality it goes from B to A then B but as its all instant it makes no odds.
This satisfy the funding requirement then all I have to do is log on once a month and skim off the interest to another account.
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