Post by Flop Post by Nick Odell
Do people still churn money through bank accounts whilst maintaining the
account balance at the maximum upon which maximum interest is paid? For
instance, paying £1000 into Santander then from there paying £500 each
into TSB and Halifax which each pay £500 into Halifax and TSB
respectively which then pay £1000 into Santander etc.
It all seemed like too much work for me especially when that nice, juicy
5% interest rate would only be applied to the first £2000 of your savings.
Is the first '£1000' and the last'£1000' the same money?
If so then you do not need to generate any money (such as
salary/pension/etc) to be paid in. You have a closed loop system.
Which would work with as many banks as you like.
The money has to leave the organisation I think. So I send 1k monthly
from one a/c with org A to org B where I also have had an a/c for
years. Some payments, pension type, go in there. I think one or maybe
two go out. Some days later £1150 (I think council tax was 150 a long
time ago) goes to a second a/c at org A, the interest-paying a/c. Or
it might all be the other way round. I'm losing the plot now. But it
happens automatically and I check accounts every few weeks to make
sure there is enough in each for what is going to go ut. Most standing
orders are from one at org A and other pension ..ICBA to log in and
check. I no longer get the higher rate of interest and could close
the ac/ at Org B but have had it for years and it is not doing any
harm. All accounts are free. Unlike Spain where things were not
free.All charged for. But more interest sort of covered it.