Now we are in a prolonged period of low interest rates, it is very difficult to get a return on our money.  The best deals seem to be with the bank current accounts but there is a problem.

In order to receive the interest rate, most bank accounts require a certain amount of money to be paid in each month and/or a number of direct debits.  In this article, I will explain how you can easily achieve the former.  My next article will talk you through how to “manufacture” direct debits.

The funding requirements are typically in excess of £1,000 per month.  None of the banks say that this has to be one payment per month.  The standing order chain could be setup “daily” for a much smaller amount.  For example, a daily standing order amount of £50 would satisfy a monthly requirement of £1,000.

I hold in excess of 10 current accounts which have funding requirements and I have set up a standing order chain.

Every week, on a Friday, £400 leaves my first account in my standing order chain.  It is processed through the chain and returns almost simultaneously.

For example, this could be as follows:

My chain is considerably longer but works exactly the same way.

You must be careful that if you have more than one account with the same provider that they must be separated in the chain.  So the transfer must not go from say Bank of Scotland to Bank of Scotland.

This takes a little time to setup but once done, that’s it.

The only other point to consider is to ensure that you have sufficient funds to cover the standing order chain amount.  If not, the chain will break down and you could have some issues.