Bank accounts
Can I cycle my money through different accounts so that I get more interest?
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Original post by Bob1939294
Can I cycle my money through different accounts so that I get more interest?
yes you could technically do that
Original post by Bob1939294
Can I cycle my money through different accounts so that I get more interest?
Yes though examine the conditions carefully.
I have a system involving money coming into my main account X, then a certain amount goes to account Y, then to Z then back to X.
Original post by Bob1939294
Can I cycle my money through different accounts so that I get more interest?
You'll find that interest is calculated based on your average balance over the month - if you have your money in an account only a third of the month, you'll only get a third of the interest.
Keep your money in the account with the highest interest rate for the highest return.
I'm not sure what you mean. As above user has pointed out you won't get more if you're just moving it about for the sake of it, but you can have multiple bank accounts and shift money around in them to theoretically play about a bit. For example, my student account gives 3% interest, but only on balances up to 2k so when the balance goes over 2k it's better for me to shift the excess somewhere else where interest can be earned. You may not have such things available to you.
Highest returns is always just having it sit for as long as possible with the highest rates possible.
Highest returns is always just having it sit for as long as possible with the highest rates possible.
Original post by Retired_Messiah
I'm not sure what you mean. As above user has pointed out you won't get more if you're just moving it about for the sake of it, but you can have multiple bank accounts and shift money around in them to theoretically play about a bit. For example, my student account gives 3% interest, but only on balances up to 2k so when the balance goes over 2k it's better for me to shift the excess somewhere else where interest can be earned. You may not have such things available to you.
Highest returns is always just having it sit for as long as possible with the highest rates possible.
Highest returns is always just having it sit for as long as possible with the highest rates possible.
The ideas is that each month in the first week of the month I put money into account X from account Y then once I earn that interest I will transfer it back to account Y to receive interest from that account for the the month.
Original post by Bob1939294
The ideas is that each month in the first week of the month I put money into account X from account Y then once I earn that interest I will transfer it back to account Y to receive interest from that account for the the month.
That's not how banking works. Nice try, though.
Original post by Bob1939294
The ideas is that each month in the first week of the month I put money into account X from account Y then once I earn that interest I will transfer it back to account Y to receive interest from that account for the the month.
Yeah that's absolutely not how they calculate interest. https://www.fool.com/knowledge-center/how-to-calculate-monthly-accrued-interest.aspx
Regardless, that level of micromanagement is absolutely wasted effort when most bank accounts provide frankly **** interest levels.
Original post by Bob1939294
The ideas is that each month in the first week of the month I put money into account X from account Y then once I earn that interest I will transfer it back to account Y to receive interest from that account for the the month.
The only way you will benefit from such transfers is if having a current account with bank X and bank Y is a prerequisite of having a high interest deposit account with each of them.
(edited 5 years ago)
Original post by IWMTom
That's not how banking works. Nice try, though.
https://forums.moneysavingexpert.com/showthread.php?t=5339134&page=2
http://www.moneysavingexpert.com/savings/savings-loophole
Original post by Retired_Messiah
Yeah that's absolutely not how they calculate interest. https://www.fool.com/knowledge-center/how-to-calculate-monthly-accrued-interest.aspx
Regardless, that level of micromanagement is absolutely wasted effort when most bank accounts provide frankly **** interest levels.
Regardless, that level of micromanagement is absolutely wasted effort when most bank accounts provide frankly **** interest levels.
https://forums.moneysavingexpert.com/showthread.php?t=5339134&page=2
http://www.moneysavingexpert.com/savings/savings-loophole
You're confusing meeting the incoming funds requirement with average interest.
This guide isn't earning the total interest on both accounts, this is maintaining a direct debit requirements to ensure a high interest bank account keeps giving you the high interest, as opposed to cutting it or closing on you. It's rather different.
That said you want to do that then go ahead.
Agreed, moving the money around current accounts is generally to achieve funding requirements rather than interest which means you have access to the linked higher paying savings accounts or monthly savers.
Pretty sure you can do this as it’s what I currently do and what I was advised to do. I need a minimum of £500 going into my account every month to get 5% interest, so I put £500 from savings and transfer it back every few weeks aha
Original post by saffarinda
Pretty sure you can do this as it’s what I currently do and what I was advised to do. I need a minimum of £500 going into my account every month to get 5% interest, so I put £500 from savings and transfer it back every few weeks aha
Pretty useless if you don't keep the money in there.
You need to keep the money there to earn the interest, the funding £500 per month only qualifies you for the rate. Pretty much all banks calculate the interest on a daily basis.
Original post by IWMTom
Pretty useless if you don't keep the money in there.
No it’s not? They give me 5% interest up to £1500, I already have 2k in my account but they need a minimum of £500 to go in every month to continue giving me the interest. So I move £500 between accounts to maintain the interest.
Means I get £75 a year in interest - so pretty useful lmao.
Original post by saffarinda
No it’s not? They give me 5% interest up to £1500, I already have 2k in my account but they need a minimum of £500 to go in every month to continue giving me the interest. So I move £500 between accounts to maintain the interest.
Means I get £75 a year in interest - so pretty useful lmao.
Means I get £75 a year in interest - so pretty useful lmao.
The account is TSB Classic Plus Account for reference
Original post by saffarinda
I already have 2k in my account
Pretty sure that meets the criteria of - and I quote - "keeping the money in there".
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