Current Accounts with interest

bellagirl69

Looking to maximise interest returns other than regular savers and looking at current accounts.

Our main account is LLoyds, we have a joint account with 6 Vantage between us. We have banked with Lloyds for over 30 years and will not change.

We also hold current accounts with First Direct, Marks and Spencer and Norwich and Peterborough for the attached regular savers. We do not use these as current accounts as such, but comply with direct debits and minimum monthly requirements.

We are looking to open current accounts with TSB to take advantage of "vantage" type offerings. Also thinking of Santander 123 to take advantage of £20000 at 3%. I need to look into Bank of Scotland offerings?

Questions

1) what are implications of opening loads of current accounts?
Will somebody somewhere say you cannot be serious?

2) The new current accounts I have mentioned, can these be opened as sham accounts just acknowledging the minimum requirements?

3) Have I missed anything significant?

Hominu

Each current account application typically requires a full credit check, so too many applications in a short period of time and you may start getting refused. So make sure you don't intend to apply for further means of credit at the same time as the additional current accounts.

badger09

bellagirl69 wrote: »

Looking to maximise interest returns other than regular savers and looking at current accounts.



Questions

1) what are implications of opening loads of current accounts?
Will somebody somewhere say you cannot be serious?

2) The new current accounts I have mentioned, can these be opened as sham accounts just acknowledging the minimum requirements?

3) Have I missed anything significant?

Nationwide FlexDirect 5% up to £2500 for a year

As Hominu said, credit checks involved. Should be ok as long as you don't want overdraft facilities will all your new accounts. I would also be wary of opening a lot of new current accounts if you intend to apply for a mortgage or other substantial credit facility in the near future.

bellagirl69

Badger09

I saw somewhere on this forum (can't find it now) that you can have 4 Nationwide FlexDirect giving you £10000 at 5% but I cannot imagine that to be the case?
Any knowledge on that?

Hominu

It's true, you can have 10K @ 5% over 4 FlexDirect accounts.

HOWEVER, only the first is guaranteed to receive interest.

Other people are currently getting the 5% on all accounts, but this may change in the future without notice.

And of course you need to transfer 1K into each account from an external source.

bellagirl69

Hominu wrote: »

It's true, you can have 10K @ 5% over 4 FlexDirect accounts.

HOWEVER, only the first is guaranteed to receive interest.

Other people are currently getting the 5% on all accounts, but this may change in the future without notice.

And of course you need to transfer 1K into each account from an external source.

Can you open all 4 accounts in one go or do you need to do it discretely and hope you get a different person each time?

YorkshireBoy

bellagirl69 wrote: »

Can you open all 4 accounts in one go or do you need to do it discretely and hope you get a different person each time?

Do them online, like I did.

But leave 24-48 hours between applications once your first has been established. Same advice goes for your 3 x BoS upcoming applications.

I have 19 current accounts, and opened 3 x BoS in the space of 5 working days earlier this year. The following week I was accepted for a Tesco credit card with a decent limit so it can't have done much damage. A few months later I bagged 3 x FlexDirect accounts (again in the space of 5 working days) complete with £2.5K overdraft facilities on each.

So it hasn't affected me...but your situation may be different.

davidqu

bellagirl69 wrote: »

Badger09

I saw somewhere on this forum (can't find it now) that you can have 4 Nationwide FlexDirect giving you £10000 at 5% but I cannot imagine that to be the case?
Any knowledge on that?

Hi I went into a nationwide branch to enquire about opening another flex direct as I already had one and was told I wouldn't get the 5% rate though I've read people on here saying they get it fine.

I split savings up between flex direct, vantage and 123 account

YorkshireBoy

davidqu wrote: »

I went into a nationwide branch to enquire...

Mistake number 1 (and not just with this account!).

badger09

bellagirl69 wrote: »

Badger09

I saw somewhere on this forum (can't find it now) that you can have 4 Nationwide FlexDirect giving you £10000 at 5% but I cannot imagine that to be the case?
Any knowledge on that?

Yes

As others have said - I have 4, all paying 5% so far

Opened 1st in March, 2nd in April & 3rd & 4th on 21 June. I had some trouble with 2nd & 3rd online applications going missing in the ether but sorted it out by combination of secure messages and phone call.

I've opened 9 new current accounts this year :cool: The second Santander 123 last week, despite forgetting to include in my outgoings, the monthly cost of over £300 on interest free car finance from Santander Consumer Finance ). The application for the car finance a few days earlier didn't seem to have been adversely impacted by all those current account applications

surfsister

what about halifax they give you £100 immediately and £5 a month to use the account? or first direct is £125