Help with getting a new current account and saving account

lovemilk

YorkshireBoy wrote: »

In order...

The one with the lowest interest rate (bearing in mind you lose the 4% rate [and fall to 2% AER] on Lloyds if you fall below £4K).
Thanks

Yes. FP = Faster Payment.
Is it easy to rotate between the accounts. Take a lot of time? Why manually move money online rather than standing order?

You'd only need to keep FD open for two reasons:

1. You wanted to use their 6% regular saver, or
2. You wanted the £100 leaving present (between months 7-12).

Can you just open and close the account after receiving the incentive? Do many people do this?


Thank you

YorkshireBoy

Yes it's easy. Takes a matter of seconds.

You can do either manual payments or SOs. In your case, since you'll be depleting the funds with your home improvement spending, I'd suggest manual payments would give you greater control, ie eliminate the risk of going overdrawn...especially if you're transferring £1.5K (for ease, rather than the £500 & £1,000 that TSB and Nationwide respectively require).

Yes you can, providing the incentive T&Cs don't preclude it, or say they'll claim back the payment. I don't know if many people do it.

lovemilk

YorkshireBoy wrote: »

Yes it's easy. Takes a matter of seconds.

The faster payment method - could I online transfer money between accounts via online banking and then take it out seconds later and put it somewhere else or do I have to leave it in each account for a day or so to be registered?

You can do either manual payments or SOs. In your case, since you'll be depleting the funds with your home improvement spending, I'd suggest manual payments would give you greater control, ie eliminate the risk of going overdrawn...especially if you're transferring £1.5K (for ease, rather than the £500 & £1,000 that TSB and Nationwide respectively require).
Sorry I'm not getting this - is it easier to move £1.5k rather than the different amounts between accounts.

Thank you

YorkshireBoy

lovemilk wrote: »

The faster payment method - could I online transfer money between accounts via online banking and then take it out seconds later and put it somewhere else or do I have to leave it in each account for a day or so to be registered?

Can be withdrawn immediately it's credited.

Sorry I'm not getting this - is it easier to move £1.5k rather than the different amounts between accounts.

It was just a suggestion really, as it's possibly easier to remember one figure, rather than 4 (for example, £1,500 to Lloyds, £500 to TSB, £1,000 to FD, and £750 to Halifax)? But you're free to manage your accounts in whatever way you're most comfortable with.

lovemilk

YorkshireBoy wrote: »

Can be withdrawn immediately it's credited.It was just a suggestion really, as it's possibly easier to remember one figure, rather than 4 (for example, £1,500 to Lloyds, £500 to TSB, £1,000 to FD, and £750 to Halifax)? But you're free to manage your accounts in whatever way you're most comfortable with.

Thanks, I'm getting there it's a bit of a learning curve. I'm thinking about going for the Clysdale current account instead of first direct. When it says switching account. Is that every dd?

Also, how do people have 2 switching accounts like Clydesdale and Halifax if they mean total switching?

Thank you

YorkshireBoy

lovemilk wrote: »

I'm thinking about going for the Clysdale current account instead of first direct. When it says switching account. Is that every dd?

It's everything on the account, since the old account is closed as part of the switch. That's why I said earlier you really needed a donor account (if your current banking is simple you probably only have one?...and you wouldn't want to close Lloyds...you should be upgrading that to Club for 4% AER).

Also, how do people have 2 switching accounts like Clydesdale and Halifax if they mean total switching?

They keep a few donor accounts at the ready. I currently have 4...just in case another deal comes along.

lovemilk

YorkshireBoy wrote: »

It's everything on the account, since the old account is closed as part of the switch. That's why I said earlier you really needed a donor account (if your current banking is simple you probably only have one?...and you wouldn't want to close Lloyds...you should be upgrading that to Club for 4% AER).They keep a few donor accounts at the ready. I currently have 4...just in case another deal comes along.

What's a donor account?

Thank you.

YorkshireBoy

An account you no longer need or use. One which you're prepared to sacrifice, knowing it will be closed when you complete the switch.


Some people will open an account with the sole intention of switching it elsewhere in order to secure a switching incentive...perhaps because they only have one account and would rather keep that open.

lovemilk

I see - so it has no money or direct debits in it?

What would be an example of a donor account?

Thank you.

YorkshireBoy

lovemilk wrote: »

I see - so it has no money or direct debits in it?

Not necessarily. If you were switching this account to Co-op, you'd need to have two DDs set up on it prior to starting the switch.

What would be an example of a donor account?

See the first paragraph in my last post.