Moving bill money to another account

[junii]

Hi there,
I am currently with the Ulster bank. I have a budget down for my expenses for the year ahead.

I like to put a certain amount away per month towards my bills like car insurance, car tax. ie. If my car tax is 500 per annum I will pay leave (500\ 12=41) e41 away per month.

I have record of this on my budget excel file but I would like to move all these payments into another account or something. Can I do this?

Thanks.

 

[ClubMan]

I have record of this on my budget excel file but I would like to move all these payments into another account or something. Can I do this?

Of course. But you might want to explain in more detail your thinking and rationale behind this so that people can comment more meaningfully.

 

[junii]

Of course. But you might want to explain in more detail your thinking and rationale behind this so that people can comment more meaningfully.

Sorry. I actually mean that on my computer I have record that there is for example 250 sitting in my bank account which is to go towards tax for the car. As the months go on this will steadily increase to 500.

I would just like to be able to put this money into another account in my bank - Ulster bank.

What is the best way to do this? Do I need to open another current account or a savings account. If it's a savings account do I have access to the money when I need it.

Thanks.

 

[ClubMan]

If you are saving it up to pay bills at the end of the year then surely it would make sense to do so in an account that maximises interest while giving you the necessary access? Then when you need to pay a bill you can move the money to your current account so that you can write a cheque or pay by Laser or whatever? Why restrict yourself to UB when there are lots of accounts out there and moving money between them via online banking is getting easier and easier? In fact Halifax even pay 10% on up to €2K in their current account subject to certain terms & conditions so there are good reasons to move to them as your main current account. See the Financial Best Buys lists for the highest yielding demand and term lump sum and regular saver accounts.

 

[GeneralZod]

I have record of this on my budget excel file but I would like to move all these payments into another account or something. Can I do this?

I set up a separate current account a couple of years ago to do similar to what you want. Salary goes into one account and then various standing orders and direct debits distribute it. The second current account is a day to day expenses (petrol, food, and so on) account.

Ulster Bank have recently introduced the eSaver account (4.4% AER). This is useful as scheduled payments can be made out of it for example paying bills directly from the eSaver at the last possible moment to get some interest first. Transfers from the eSaver to the current are instantaneous. You can set up the eSavings account online but you might have to visit the branch to set up another current account.

As ClubMan says you can use other Banks' accounts as well. With the exception of Northern Rock I find most transfers between banks are next business day if ordered before about 11am on the previous day.