8% First Direct - Easy Explanation

princessdon

Thats really interesting Moneysaverlog

I have applied to open the FD account but would like to keep my Halifax open (to get the £5 reward), so all I need to do is set a SO up to transfer the money around.

MoneySaverLog

Indeed, keeping the halifax account for the reward only. £1,000 in and £1005 out. :-)))

Now thinking about HSBC Regular saver too gives 6% so would have to include them in the monthly merry-go-round with at least £500 a month paid into their current account to avoid their charges. Need something to replace West Brom account in June.

I could move £550 a month to HSBC leaving the rest in Lloyds TSB. If they let me bank with them as well as FD :-)

Then I could transfer £300 from HSBC to FD for their regular saver (8%), and the remaining £250 goes into the HSBC's regular saver (6%).

£1,000 merry go round between Lloyds vantage accounts and Halifax. Gives me £5 a month and 8% and 6% on my regular savers with FD & HSBC :-))))

That's all assuming HSBC will have me as a customer as well as FD. When I applied today the online application said they would write out with a decision and I'm sure they know what I'm doing.

princessdon

That would work but looking to reduce my hours to go to Uni so the £1500 a month may be an issue for the £100 bonus.

Unless I get the OH to open a joint account.

He only has 3 DD/SO from his account. Main one to the household bills account (halifax) so wouldn't want that messed around with it can stay as is.

Apart from the SO to the bills account, he only has his mobile phone and sky, so no major hassle to move and his current account gives no benefits.

If we opened it in joint names would this allow us both to open the 8% saver do you know?

ejv

MoneySaverLog wrote: »

Now thinking about HSBC Regular saver too gives 6% so would have to include them in the monthly merry-go-round with at least £500 a month paid into their current account to avoid their charges.

Do they have this criteria? Didn't see that....

MoneySaverLog

Yes you have to have their standard current account and pay in at least £500 a month otherwise they will charge for the account and may close it or downgrade you to an account which makes you no longer eligable for the regular saver.

ejv

MoneySaverLog wrote: »

Yes you have to have their standard current account and pay in at least £500 a month otherwise they will charge for the account and may close it or downgrade you to an account which makes you no longer eligable for the regular saver.

I wasn't asked/warned regarding this...
Would that be because I had the current account with them for few years and been registered for internet banking?
I didn't see it, as this charge is mentioned under "BANK ACCOUNT".I just logged in my account and was through in couple of clicks

MoneySaverLog

Applied for the "Bank Account" on this page http://www.hsbc.co.uk/1/2/current-accounts

If you click on "Brief Highlights" it says you have to fund the account with £500. It may be the case that this is just for new customers only though.

anselld

princessdon wrote: »

That would work but looking to reduce my hours to go to Uni so the £1500 a month may be an issue for the £100 bonus.

Unless I get the OH to open a joint account.

He only has 3 DD/SO from his account. Main one to the household bills account (halifax) so wouldn't want that messed around with it can stay as is.

Apart from the SO to the bills account, he only has his mobile phone and sky, so no major hassle to move and his current account gives no benefits.

If we opened it in joint names would this allow us both to open the 8% saver do you know?

You only need to do the 1500 once for the 100 bonus. After that you can just rely on having the £1 in a savings account.

A joint first account should allow each of you to open a sole regular saver, ie allowing £600 per month in total.

ejv

anselld wrote: »

You only need to do the 1500 once for the 100 bonus.

Are you suggesting bouncing the £1500 between 2 accounts every month?

Some posts say this £1500 should be by BACS every month ie "salary". Does BACS always mean salary?

anselld

ejv wrote: »

Are you suggesting bouncing the £1500 between 2 accounts every month?

Some posts say this £1500 should be by BACS every month ie "salary". Does BACS always mean salary?

No. Just pointing out that the £100 bonus requirement is £1500 once in 3 months. Bounce via FP is fine. I think it has even been said it can be multiple smaller credits.

The funding requirment to avoid the monthly charge is a separate issue. You can bounce 1500 every month, but it is easier to just leave £1 in a savings account.