What should I do: unwanted brand new current account

steveyme

Just applied for a Santander 123 current account, in preparation for buying a house next year and using it to pay possibly a mortgage and probably household bills. While the documents were coming through, I've realised that in the mean time, its only fractionally less profitable for me to stash my savings in my NISA, and a whole lot less effort. Would cancelling and closing it immediately upon opening it affect my standing with Santander or indeed in general, do you think?

Archi_Bald

No impact on your credit file if you don't use the account. But as you have got it now, use it to make money from it....switch it to Halifax or M&S or Coop or FD or Nationwide - - money to be made from that, about £400 to £500 in total if you do them all.

Joe_Bloggs

@steveyme
Which instant access NISA pays better interest than the 123 current account after tax? All current account interest/ DD rebates are paid monthly so you can get your hands on the profits on up to £20K.

It is not such a faff once you get over the consumer inertia. You have done the hard part already. To be a serious saver these days it is necessary to acquire multiple current accounts and to circulate the minimum funding requirement through them.

The amount you can get interest on in the 123 account is 4 times higher than Club Lloyds (4% up to £5K once above £4K). I use the 123 account to fund the minimum throughput through a series of lower limit but higher interest paying accounts.

I can't see a downside to having multiple current accounts and being an existing current account customer when applying for a mortgage.

Well run multiple current accounts lead to more savings opportunities, a wider range of credit offers, special discounts/ cash back on purchases etc. Plus a possibility of a bonus elsewhere for switching when these benefits are withdrawn.

J_B.