Stay with first direct?

Options
ccdorset
ccdorset Posts: 295 Forumite
First Anniversary Name Dropper First Post Combo Breaker
in Budgeting & bank accounts
Hi,

I currently have my current account with first direct. I've banked with them since 2006, though did move my banking to Barclays for 1 year but switched back again a few months ago.

Although I love the customer service first direct provides, I'm wondering whether it is the best account for me. With Halifax offering the £5 reward account and others having In Credit interest rates of 3% or more I'm wondering whether I should try somewhere else.

I am going to open a Nationwide Flex Plus account to get the benefits associated with that and the £80 cash back, but not sure whether to switch my main banking away from first direct again.

Just wondering what people's opinions were please?

Thanks in advance for your help.
«1345

Comments

  • anoncol
    anoncol Posts: 982 Forumite
    Options
    You can have more than 1 current account. Many here have loads. I'm in double digits now i reckon.

    Various perks such as cashback on utility bills and better interest depending on how much cash savings you have.

    Plus there are switching incentives that you dont need to keep accounts to receive.
  • ccdorset
    ccdorset Posts: 295 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    Options
    anoncol wrote: »
    You can have more than 1 current account. Many here have loads. I'm in double digits now i reckon.

    Various perks such as cashback on utility bills and better interest depending on how much cash savings you have.

    Plus there are switching incentives that you dont need to keep accounts to receive.

    So maybe the first thing to do is gradually make my way through opening all the accounts with the switching offers? As far as I can see these would be Halifax, M&S and Co-Op? I already took advantage of the first direct offer when I opened the account.
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    Options
    ccdorset wrote: »
    As far as I can see these would be Halifax, M&S and Co-Op?

    That's right, plus Nationwide and Santander via Quidco

    If you do them all sequentially, it will take quite some time. Also, you'd want to keep at least the Halifax account for good.
  • ccdorset
    ccdorset Posts: 295 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    Options
    Great thank you. Do you know if you have to keep the accounts open for a set amount of time to get the switching incentive? Also with Halifax would I have to continue paying 2 direct debits into the account to receive the £5 reward or could I just transfer £750 each month to it?
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    Options
    You do not need to keep accounts open for a minimum time but it can take a long time for the joining bonus to be paid. I seem to remember M&S and Coop both took 30 days from completion of the switch.

    The Halifax fivers require 2 monthly paying DDs, plus the £750 each month. The DDs are easy to do with a couple of Tesco savings accounts.
  • ccdorset
    ccdorset Posts: 295 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    Options
    Archi_Bald wrote: »
    You do not need to keep accounts open for a minimum time but it can take a long time for the joining bonus to be paid. I seem to remember M&S and Coop both took 30 days from completion of the switch.

    The Halifax fivers require 2 monthly paying DDs, plus the £750 each month. The DDs are easy to do with a couple of Tesco savings accounts.

    Great thank you. Another dilemma is after all the switching incentives have been done, I'm wondering whether to settle with a different bank/building society as I'm not sure first direct really is the best in terms of interest and benefits etc. Any opinions?
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Name Dropper First Post First Anniversary
    edited 19 September 2014 at 8:57PM
    Options
    ccdorset wrote: »
    Another dilemma is after all the switching incentives have been done, I'm wondering whether to settle with a different bank/building society as I'm not sure first direct really is the best in terms of interest and benefits etc. Any opinions?
    You won't get all of the above in one account!

    One of my Halifax accounts receives my salary and pays my bills (by DD), and that's all I use it for. You could use FD for this.

    All my other accounts are held for the various "interest and benefits" they offer, ie:

    3-5% in-credit interest (TSB x 2, Lloyds x 1, BoS x 3, Yorkshire Bank, Santander, etc)
    Reward payments (on 3 other Halifax accounts)
    Free European travel insurance (Nationwide FlexAccount)
    Zero loading European forex spending (Metro)
    Etc, etc, etc.
  • ccdorset
    ccdorset Posts: 295 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    Options
    YorkshireBoy wrote: »
    You won't get all of the above in one account!

    One of my Halifax accounts receives my salary and pays my bills (by DD), and that's all I use it for. You could use FD for this.

    All my other accounts are held for the various "interest and benefits" they offer, ie:

    3-5% in-credit interest (TSB x 2, Lloyds x 1, BoS x 3, Yorkshire Bank, Santander, etc)
    Reward payments (on 3 other Halifax accounts)
    Free European travel insurance (Nationwide FlexAccount)
    Zero loading European forex spending (Metro)
    Etc, etc, etc.

    Ah OK, so I guess the idea would be to open some current accounts with high in credit interest rates and use them as savings accounts?
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Name Dropper First Post First Anniversary
    Options
    ccdorset wrote: »
    Ah OK, so I guess the idea would be to open some current accounts with high in credit interest rates and use them as savings accounts?
    That's the general idea, so long as you have the required attention to detail. Not everyone has.
  • ccdorset
    ccdorset Posts: 295 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    Options
    YorkshireBoy wrote: »
    That's the general idea, so long as you have the required attention to detail. Not everyone has.

    Brill, thanks for that. I think I will start with the switching incentives and then move on to the best In Credit interest accounts. I will need to pay off my credit cards first anyway!
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards