Having two current accounts

elevenoverzero

Hi guys,

Just wondering if its a good idea to have open a 2nd bank account to take advantage of the halifax reward £5 a month deal?

I already have a current account with Santandar but was wondering how it might effect my credit rating and if simply shifting over £1000 a month to the halifax one and then back again without using it for anything else would entitle me to the £5 reward

Thanks in advance

rb10

The effect on your credit rating is slim to nil. Plenty of people have five or more current accounts.

Bear in mind that if you apply via moneysupermarket.com or in a branch, you could get an extra £50 for transferring your standing orders/direct debits across.

There are two ways that you can work this:
1) Continue using Santander as your main account, just put £1k through the account each month, picking up the previous month's fiver on the way. The money doesn't have to stay in the account for more than a second, and there's no minimum balance.
2) (Simpler once it's set up). Use the account as your main account, with your salary going in (and thus getting you the £5), and ditch the Santander account. You'll probably find that customer service is better at Halifax anyway.

Paul_Herring

It's a good idea to have two current accounts, full stop.

For instance, I use one for bills and the other for 'beer money' and other incidentals (a rough form of budgeting if you like,) so both are actually 'in-use.'

It makes it easier, if sometime down the line you have a problem with one of your accounts, to move stuff over.

If you close one of them for whatever reason later, open a 3rd (before or after closing.)

elevenoverzero

Thanks for the advice guys, i'll apply for the halifax reward account later today and start earning

I havent had an issue with santandars poor customer service because I generally do all my banking online and never have had to phone up or go into a branch...although ive probably just jinxed that!

I may leave some cash in the halifax one for my spending money for the month so I never over spend. I already have a savings account setup for my car fund which I use to pay for my service, MOT, tax and insurance each year.

System

Hi

You should also check the following link for Faster Payment timescales and transaction limits:

http://www.chapsco.co.uk/faster_payments/-/page/fpslimits/

To get the £1000 in and out as quick as possible use a standing order from Satander which (should) go as FP. The single transaction limit is £300 so anything more would go as BACS and take 2-4 working days.

Sending back from Halifax to Santander won't (usually) be a problem, but always be prepared for delays and make sure you have backup funds to cover your outgoings.

Regards
UNDERGROUND

Justicia

Paul_Herring wrote: »

It's a good idea to have two current accounts, full stop.

For instance, I use one for bills and the other for 'beer money' and other incidentals (a rough form of budgeting if you like,) so both are actually 'in-use.'

It makes it easier, if sometime down the line you have a problem with one of your accounts, to move stuff over.

Fully agree with this - I have two; one that is my main account (salary and general expenditure) and I maintain a smaller balance on a second account as a back-up in case of any debit card/banking system issues, etc., which may occur at an inconvenient time.