changing bank accounts etc

Feb 19, 2006 5 Replies

Hi I have opened a Cahoot interest paying current account and a Cahoot savings account and transferred all my direct debits to the interest paying current account. What I have not done is to transfer my wages to the Cahoot account, they are still paid into my RBS interest paying current account. For some strange reason I like a bank account with a branch office that I can pay cheques/cash into. I also have telephone banking with this account which I do not have with Cahoot



Therefore every 4 weeks when my wages are paid I transfer the money to my Cahoot account leaving a balance of about -99 in my account. (100 fee free overdraft with no interest)



I am quite happy with this but was wondering how much I am losing in interest when my wages disappear for about 4 days every 4 weeks? Or is it so minuscule it is not worth bothering about?



Thanks Jackie


It rather depends on how much your wages are!

Not very much, 650 - 720 every four weeks. ASDA slave labour camp. Jackie

700 at 4% for 4 days is 31 pence. If it's happening 13 times a year then 3.99, with tax still to be deducted at basic rate giving you 3.19.

"Jackie" wrote

Probably less than 40p each time... What interest rate do you get?

Anyway, why not get rid of the former account and use the post office as below?

"local post offices Deposit up to 10,000 cash per day into your cahoot current account at most UK post offices, using a paying-in slip from your paying-in book or your cheque book. Cash deposits can take up to five working days to be credited to your account. To deposit cheques, present them together with a completed paying-in slip in a green cheque deposit envelope (we send you these when you open a cahoot current account)"

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