Simple Current Account question

Tom1234

Silly questions perhaps, but I can't seem to find an answer.

I have a current account with HSBC. I get nothing of value from this. Customer service isn't great, and no real benefits to speak of.

If i were to switch this account to First Direct/Nationwide, do I need to switch where my salary is paid or is it possible to just switch the SO's and DD's and set up a SO to to pay in £1000 a month to gain the benefits and avoid a fee?

Second question - does the £1000 (or whatever the min paid in is) need to stay in that account, or could I then set up a SO to pay it back to the original account/another current account?

The goal is obviously to get any switching bonus, and the benefits of the account (ie 5% on up to £2500 saved with Nationwide) but I'm sure there must be something I've missed, otherwise I could just set up 2-3 current accounts, move x% of my monthly salary between them while gaining the benefits of all of them...?

innovate

Tom1234 wrote: »

If i were to switch this account to First Direct/Nationwide, do I need to switch where my salary is paid or is it possible to just switch the SO's and DD's and set up a SO to to pay in £1000 a month to gain the benefits and avoid a fee?

Each account has its own T&Cs, and switching is subject to specific T&Cs by each bank. You can't really throw a First Direct account and a Nationwide account into one pot and expect the same answer to apply to both. Having said this, I have not come across any T&Cs that asked for salary switch. Some people don't have any salary, so this would be a weird clause to have, anyway.

Tom1234 wrote: »

Second question - does the £1000 (or whatever the min paid in is) need to stay in that account, or could I then set up a SO to pay it back to the original account/another current account?

Again, you need to check the T&Cs of the relevant account. I have not come across any minimum 'stay put' requirement in any current account T&Cs. It would be very weird to have such a clause in a current account because by their very nature current account are there for quick money in and quick money out.

Tom1234 wrote: »

The goal is obviously to get any switching bonus, and the benefits of the account (ie 5% on up to £2500 saved with Nationwide) but I'm sure there must be something I've missed, otherwise I could just set up 2-3 current accounts, move x% of my monthly salary between them while gaining the benefits of all of them...?

you have not missed anything. You can indeed set up as many current accounts as you like, and as the banks/BSs let you have. Many people here have multiple current accounts, for exactly the purpose you say - - gaining the benefits of each of these accounts. If you do have multiple accounts, it is even more important that you really do understand what the T&Cs of each of these are. And you have to be be ace on managing your funds.

Tom1234

Oh. Thanks for that very clear and comprehensive answer

Feel a little silly now. Always assumed you could only have one!

I won't be moving any money until I've read all T&Cs of course and made sure I'm 100% comfortable with them. I've only recently started to get a good grasp of my money, so am now in the position where I have £4-5k sat in a current account earning no interest, and want to actually do something with it.

First step will be a cash ISA to put that sum away and earn decent interest onit, but following that I want to make sure I am making the most of any additional savings - so exploring all options.

Thank you again for the advice

innovate

Tom1234 wrote: »

Feel a little silly now. Always assumed you could only have one!

don't feel silly. The bankers all want you to think you can only have one current account (or a couple, if you must, as long as it is with their bank/BS). All not true.

Tom1234 wrote: »

First step will be a cash ISA to put that sum away and earn decent interest onit, but following that I want to make sure I am making the most of any additional savings - so exploring all options.

You may actually not want to start with a cash ISA right now. We live in very strange times, and you can get better returns from current accounts than from cash ISAs these days. You find the best ISAs in post 1 of https://forums.moneysavingexpert.com/discussion/401374.

If you put £2.5K into a FlexDirect now, you get 5% AER (4% after basic rate tax) on it for 12 months. You can have 4 of these, but they only guarantee the interest in 1. Many people here have 4. There are other current accounts which pay better interest than you can get in any cash ISA at present. You can still put your money into an ISA just before the end of the tax year, so you don't loose your current year's ISA allowance.

There is also a Quidco/TCB offer from Nationwide for the FlexDirect - - switch accounts and they promise £70.