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Banks are crafty little devils.

Hierophant
Hierophant Male
5 days ago
I have two bank accounts, one is my main current account where wages and stuff get paid into and all direct debits are taken out of, the other is a savings account where the surplus money sits. Presumably, the interest in the second account is slightly higher.
My bank would automatically move (or sweep as they called it) money from one account to the other when required so the current account remained topped up, but money wasn't sitting there doing nothing either.

Anyway I seem to remember a mention some months ago about this automatic sweeping was coming to an end and today I got proof of that.
I had a text to tell me my current account was overdrawn and if I don't top it up by 6pm interest of 35% will apply!
To be fair they sent a text so at least I was warned this time, but it made me realise I will need to keep an eye on it. Presumably, money won't be moved into the higher interest account automatically either.
I guess the moral of the story is read stuff your bank sends you and don't be a lazy sod!.... lol
Pboro Trevor
Pboro Trevor Male
5 days ago
I use MS Money to keep track of my finances, like you, in a number of accounts. The software allows me to forecast when I need to top up the various accounts.
lindy
lindy Female
5 days ago
hahahaha....I had notification a little while ago telling me I'd not used a saving account [with money in] for 11 months and if I didn't call them to wake it up it would be made 'idle'.  So thanks for the reminder...but may just forget and be 'idle'.
JustKatie
JustKatie Female
5 days ago
I had the same messsage from my bank lindy. You would think they would be over the moon at having our money sat there with no hassle wouldn't you.
ToBeAdvised
ToBeAdvised Male
5 days ago
Presumably, the interest in the second account is slightly higher.
Presumably, money won't be moved into the higher interest account automatically either

Lots of presumptions there.

Banking as well as everything else is something that you need to be aware of rather than thinking that the organisation has your best interest at heart. Like people sitting on old mobile phone contracts where they're paying a fortune for things they never use, or, when it was possible to do so, not checking if there was cheaper dual fuel fixed tariffs available, or believing that because you'd been with an insurance company for years that you'd be offered the best renewal premium rather than hundreds of £'s more than new customers switching (although that practice has now been stopped) and even have it on auto renewal for an even easier life.

As you correctly did presume they all rely on the customers being lazy sods.
terry
terry Male
5 days ago
I wonder if this time of the month is when organisations generally take their brass, this month I fluffed things and spent too much, expecting them to take their DD tomorrow when there'll be enough brass in, awkward sods are taking it today. Like you Hiero, I get a text from my bank when this is happening which I find useful and over the years has helped me better control my finances....bit like a kick up the backside.
It's strange - to me - but I quite like my bank and how they handle my account but I don't get interest so maybe they like that side, where they get to keep any interest it makes, your comment about the sweeping thing I found interesting, my lot never mentioned they do/did that.
I reckon you ought to do a thread about opening letters, I rarely open them but not out of laziness, with me it's out of fear of bad news.
lindy
lindy Female
5 days ago
Absolutely Katie....must read the small print.  Maybe it means they won't pay interest on an idle account but like Terry if I think it's official I have to wait til I can put a smile on my face before I open official letters.  Generally, it's good not bad news.  Not much these days to shake this old bird up lolx
Hierophant
Hierophant Male
5 days ago
Presumably, the interest in the second account is slightly higher.
Presumably, money won't be moved into the higher interest account automatically either
Lots of presumptions there.


My point is the movement used to be automatic, the bank made sure I had a "float" of about £300 in the current account and the rest of my millions were kept in the saver account.
I didn't have to do anything regarding moving money either way. Now that has stopped and I would imagine the texts will stop too.

I actually check my banking app almost every day so it isn't much of a problem really, but I can imagine people going overdrawn and being hit with high interest payments they weren't expecting....
BOYDEL
BOYDEL Male
5 days ago
Another way around the "float "issue is to get an arranged overdraft in place - where the cost is way lower than the non arranged version.

That said with many of even the better savings accounts paying little more than 2.5% pa - it costs a tad over £2 pcm to leave a permanent float of say £1000 in one's current account.
Hierophant
Hierophant Male
5 days ago
The funny thing is in all the years I've had a bank account I have only been overdrawn a handful of times.
My overdraft limit is still the default £150, I know people who are almost permanently overdrawn.....
Samx
Samx Male
5 days ago
Be very aware of a bank account being made idl. It is often the first step to close the account, sometimes even without telling you and/or pay out the remaining balance.

To me, banks are daylight robbers. They use our money to make money for themselves, without ever compensating us. The base rate increased recently. Did financial institutions start or increase the interest rates to our savings or even current account, which they used to do.
Samx
Samx Male
5 days ago
Be very aware of a bank account being made idl. It is often the first step to close the account, sometimes even without telling you and/or pay out the remaining balance.

To me, banks are daylight robbers. They use our money to make money for themselves, without ever compensating us. The base rate increased recently. Did financial institutions start or increase the interest rates to our savings or even current account, which they used to do.
ToBeAdvised
ToBeAdvised Male
5 days ago
The base rate increased recently. Did financial institutions start or increase the interest rates to our savings or even current account, which they used to do.

The Base Rate has actually increased 7 times this year (and 8 since December 2021).
To be fair the financial institution that I use to house cash has increased their savings rate each time too (and I can see many more have also followed suit).

But the bank base rate is the rate that the Bank of England charges banks and other lenders when they borrow money. Therefore the base rate influences the interest rates that those lenders then charge for mortgages, loans and other types of credit they offer people.
In times when there's sufficient liquidity in the market, they don't necessarily need to offer attractive interest rates to savers which would encourage people to deposit monies with them. It's a misconception that savings rates are somehow inextricably linked to rises in the base rate. They're not.
asteer
asteer Female
4 days ago
There's little to no money in bank accounts anymore. If you are prepared to take a calculated risk and spread your capital, being an Angel investor is the way to go.
CircusMaximus
CircusMaximus Male
4 days ago
Banks have very little interest in the individual saver with a couple of current accounts.
BOYDEL
BOYDEL Male
4 days ago
" I fluffed things and spent too much, expecting them to take their DD tomorrow when there'll be enough brass in, awkward sods are taking it today."

Direct Debit requests have to be either paid from "available funds" on the day of receipt - or returned unpaid, - they cannot be left as pending.

Hence best to get all Creditors to issue DDs a few days after the date when you can be certain that your monthly salary will have been credited - I find most are quite amenable to that simple measure.
Andromeda
Andromeda Female
3 days ago
My banking requirements are very simple and I don't think I've had any problems.


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