"Switching" bank account without switching?

MrRightSA

I'm starting to save for a mortgage with my partner and want to take advantage of the Halifax £5 per month interest for paying in £750 per month. I currently have the Santander 123 account (and don't want to actually switch). What I'd be doing is having my wages deposited into Halifax to meet the £750 per month limit before transferring them over to my Santander account (less what I'm saving).

Would this work okay since I am meeting the £750 with Halifax and transferring more than £500 into my Santander account (thus meeting the £500 per month Santander want)? If so, how can I do it without losing my Santander account?

YorkshireBoy

It's not necessary to switch an account for the £5 Reward payment.

Just open the account, set up the requisite 2 DDs, stay in credit, and cycle £750 from Santander to Halifax and back again each month.

However, it'd be a shame to miss out on £100 for switching to them, so you could open an Everyday Current Account with Santander and switch that to Halifax.

As there are two of you, you can have a Halifax account each, plus a joint (if you're happy to financially associate yourselves now).

Fruit_and_Nut_Case

MrRightSA wrote: »

...the Halifax £5 per month interest...

YorkshireBoy wrote: »

...the £5 Reward payment...

Point to note: As YB says, It's a Reward, not Interest. /nitpick

MrRightSA

Sorry, I knew I'd forget something from my post, yeah it was for the £100 switch that made the decision.

When I switched from RBS to Santander a couple of years ago, they never actually closed my RBS account down. Could I put a couple of DD's in the RBS account and switch from that one again?

YorkshireBoy

MrRightSA wrote: »

When I switched from RBS to Santander a couple of years ago, they never actually closed my RBS account down. Could I put a couple of DD's in the RBS account and switch from that one again?

You could, but since there's no need to switch DDs (or SOs for that matter) for the £100 incentive payment, why not get the account switched and then set the DDs up on Halifax?


EDIT: You may find the RBS debit card has expired, so the switch might not be able to go ahead (as happened to myself with NatWest).

MrRightSA

Ahhh so even though my RBS has nothing on it at all I can still do the switch through it then set up the DD afterwards?

oldfella

Point to note: As YB says, It's a Reward, not Interest. /nitpic

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technically its treated as interest and can be reclaimed from HMRC. The actual payment is £6.25 less 20%

Archi_Bald

Just because something has 20% tax taken off doesn't make it interest.

oldfella

Just because something has 20% tax taken off doesn't make it interest.

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I dont think I said it was, I just pointed out that HMRC tax it in the same way

LXdaddy

oldfella wrote: »

Just because something has 20% tax taken off doesn't make it interest.

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I dont think I said it was, I just pointed out that HMRC tax it in the same way

Oldfella - I think you will find that Archi Bald was agreeing with you refering to the first post where OP said

take advantage of the Halifax £5 per month interest for paying in £750 per month.