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Multiple Current Accounts?
KnottyB
Posts: 12 Forumite
Good Afternoon All,
I currently have 2 standard current accounts. A main one where my income goes into and all my SOs and DDs come out of. I also have an online saver with a rate of 3.24% AER which will be dropping to 0.5% as my 12 month bonus period is nearly over.
I have been looking for alternative online easy access savers to move my savings to but most are around 2.0%. I then saw two current accounts with high interest returns on them:
1 – NationWide’s Flex Direct - 5%AER (first year, 1% thereafter) up to £2500.
- No fee but must have £1000 in every month.
2 – Santander’s 123 - 3% AER on balances between £3,000 and £20,000.
- £2 monthly fee but cash back on various bills and rate kept until £20,000.
- £500 / month is required to be deposited into the account.
(Both protected by FSCS)
My questions are as follows:
- Anyone know why current accounts are offering greater interest rates than savers? (Perhaps I am interpreting the figures incorrectly?)
- Does the FSCS cover current accounts or just saving accounts? I only ask because of Spain's current financial standing. Not to say the UK is doing too great. (I do appreciate that Santanders UK is run separate to its Spanish owner 'Banco Santander', however I am a very pessimistic person so always like to double check everything).
- Would it be okay to transfer £1000 of my wages to the FlexDirect then a week later to my Santander, then transfer £500 back to my main account?
My aim is to keep £2500 in the flex account to earn the 5% for a year then the remainder of my savings in the Santander account, using that for the cashback on bills and the 3% interest. The £500 going back into my account would be for rent.
Thank you in advanced.
Regards,
Knotty.
I currently have 2 standard current accounts. A main one where my income goes into and all my SOs and DDs come out of. I also have an online saver with a rate of 3.24% AER which will be dropping to 0.5% as my 12 month bonus period is nearly over.
I have been looking for alternative online easy access savers to move my savings to but most are around 2.0%. I then saw two current accounts with high interest returns on them:
1 – NationWide’s Flex Direct - 5%AER (first year, 1% thereafter) up to £2500.
- No fee but must have £1000 in every month.
2 – Santander’s 123 - 3% AER on balances between £3,000 and £20,000.
- £2 monthly fee but cash back on various bills and rate kept until £20,000.
- £500 / month is required to be deposited into the account.
(Both protected by FSCS)
My questions are as follows:
- Anyone know why current accounts are offering greater interest rates than savers? (Perhaps I am interpreting the figures incorrectly?)
- Does the FSCS cover current accounts or just saving accounts? I only ask because of Spain's current financial standing. Not to say the UK is doing too great. (I do appreciate that Santanders UK is run separate to its Spanish owner 'Banco Santander', however I am a very pessimistic person so always like to double check everything).
- Would it be okay to transfer £1000 of my wages to the FlexDirect then a week later to my Santander, then transfer £500 back to my main account?
My aim is to keep £2500 in the flex account to earn the 5% for a year then the remainder of my savings in the Santander account, using that for the cashback on bills and the 3% interest. The £500 going back into my account would be for rent.
Thank you in advanced.
Regards,
Knotty.
0
Comments
-
Basically - yes to all. I'd advise you to do a search as this has been answered many times recently.
Have fun!0 -
You can put £1k into the FlexDirect and move it out immediately, and it will still count as the £1k deposit for the month. Likewise with Santander 123.What will your verse be?
R.I.P Robin Williams.0 -
Don't forget The Savings And Investments Board where this question has been answered about a squizillion times0
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