Bank Switch.....help me decide

Willow_K

We currently have all of our banking with Barclays and have done since we were both teenagers (joint current, personal current each, savings plus business banking).

I want to open a new joint current account to separate out our fixed outgoings each month from our discretionary spending, so thought I may as well take advantage of one of the switching offers that are around at the minute.

However, I can't decide between First Direct and Halifax reward.

On the face of it, the First Direct account seems to be the best assuming I can make full use of the 8% savings - the initial £125 plus approximately £160 in interest at the end of the 12 months means I will net £285 in the first year vs £160 from Halifax reward.

However, Halifax reward will continue to pay long term - although it would take three years to net what I get from First Direct in the first 12 months.

I could switch again in 2 years time, but what effect would tarting around bank accounts actually have on my credit rating? Plus all the hassle it entails.

So, what to do? Obviously need to make a decision quick with the £125 offer ending on Sunday, so what do you guys think?

Willow_K

Just rechecked the figures and it is £124 net interest so £250 in the first year - £90 more than halifax

money_grows

Having been with the Halifax a few years ago and with the reviews on MSE of First Direct I would recommend First Direct.

If I had a higher credit score I would apply for an account with FD.

Good luck in your decision, but choose wisely.

Gromitt

Why not have both ? Open the FD account and then a month later open the Halifax account. All you have to do with Halifax is transfer 1K in each month to get your £5. Likewise, once you've got your £125 from FD, all you need to transfer in is your £300/month for the regular saver.

Also, I find the Halifax Online Saver (2.8%) a nice instant access savings account. Rather than many online based savings accounts, you can transfer to the current account instantly and then use faster payments to another account. Plus you have the Halifax savings lottery if you put 5K in there.