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Is this a possible way to earn extra interest?

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  • 28-01-2013 11:26pm
    #1
    Scortho
    Closed Accounts Posts: 3,876 ✭✭✭


    Right here goes
    Can I have an unlimited number of instant access accounts and short notice ones with different banks? The reason I ask is because I want to move my money around a number of deposit accounts to maximise the return without any risk?

    Take for example kbc smart access demand account that pays 3%. And aib's 7 day notice account that pays 2.5%.
    Can I lodge 3000 in Kbc's smart access and then a couple of days before the interest is due to be applied top it up to say 10000. Then once that interest is applied withdraw the money down to the 3000 euro requirement and then lodge the sum in aib 7 day access which pays its interest in April and October?
    Or do the banks not allow this?


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    #2
    srsly78
    Registered Users Posts: 7,157 ✭✭✭srsly78


    Depends on the software implementation. Most likely only money that has been there for the full term will have the full rate applied. Money that has been there for a partial term will have a proportional rate applied.

    Or they could just not give you any interest at all for the new money in that quarter! Would have to read the small print. Basically comes down to how time is quantised in the software.

    So your answer is: probably not.


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    #3
    Scortho
    Closed Accounts Posts: 3,876 ✭✭✭Scortho


    srsly78 wrote: »
    Depends on the software implementation. Most likely only money that has been there for the full term will have the full rate applied. Money that has been there for a partial term will have a proportional rate applied.

    Or they could just not give you any interest at all for the new money in that quarter! Would have to read the small print. Basically comes down to how time is quantised in the software.

    So your answer is: probably not.

    Cheers ill get the small print for both and have a look. Thought I was onto a no brainer for a couple of minutes!:(


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    #4
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Interests always calculated daily and just applied monthly/quarterly/annually so wouldn't work.


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    #5
    BuffyBot
    Registered Users Posts: 24,924 ✭✭✭✭BuffyBot


    Indeed, daily. So it wouldn't matter what movement you are making, there would be very little gain involved.


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    #6
    ChainWhip
    Registered Users Posts: 225 ✭✭ChainWhip


    For most deposit accounts interest is calculated daily and applied quarterly/annually etc.

    So your interest will be calculated on whatever balance is in whatever account at whatever rate at midnight each day. This builds up day after day in the background and then applied as appropriate.

    Unfortunately there's no way to play the system; crafty banks....


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    #7
    Scortho
    Closed Accounts Posts: 3,876 ✭✭✭Scortho


    Alright back to the drawing board so! Ill have a look at my aib statement from last year as I'm nearly sure they paid 1.25% on the amount I had at the time.
    I know my credit union pays at the amount in the account on the day. That day changes but its in November.

    Edit
    Just read terms and conditions. it is daily. Cheers anyway


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