Opening accounts in quick succession

LunaNytshade

Is there a limit or a downside to opening lots of accounts within a short space of time?

I think I've figured out the best way to make all my money work for me but it would involve switching my current account to a new provider, opening a tesco's savings account for the additional direct debit, and opening a new ISA.

Thanks in advance.

Archi_Bald

No downsides unless you apply for dozens of current accounts just before you need a credit (loan, mortgage).

What sort of ISA do you have in mind, and why does it form part of your plan? A cash ISA might not be your most advantageous account.

YorkshireBoy

LunaNytshade wrote: »

Is there a limit or a downside to opening lots of accounts within a short space of time?

If there's a limit, its more than 10, because that's the number of current accounts I've opened in the last 2 months (and I haven't finished yet!). There may be short term damage to your credit rating, but that doesn't concern me as I've no need for credit.

I think I've figured out the best way to make all my money work for me...opening a new ISA.

I think you've more work to do! If the numbers in your signature are up to date, opening a cash ISA should be way down your to do list.

LunaNytshade

Thanks for your quick reply.

I like the look of the Newcastle Big Home Saver mentioned in the top picks. I have 6k in my current ISA and I put £300 a month in it (dream of future house deposit).

I figured I could open a Santander 123 to keep the money working for me while I deposited my 6k over the months. I think it offers a tiny interest advantage after tax.

LunaNytshade

YorkshireBoy wrote: »

I think you've more work to do! If the numbers in your signature are up to date, opening a cash ISA should be way down your to do list.

The figures are up to date and I would welcome any suggestions.

grumbler

LunaNytshade wrote: »

The figures are up to date and I would welcome any suggestions.

There are many current accounts that pay net interest much higher than any cash ISA.

LunaNytshade

grumbler wrote: »

There are many current accounts that pay net interest much higher than any cash ISA.

I have one funded TSB account with another being opened. I possibly could fund a Lloyds with a bit of juggling from another account but I only earn just over 1k a month, so I'm not sure if I would be accepted.

TartanSaver

I don't have a lloyds account, but on an income considerably less than yours I've got a Santander 1-2-3, 2xTSB, a Nationwide Flexdirect, a First Direct (for the regular saver), and a Halifax (for free fivers.) You could make your money work a lot harder than 1.55%! Even 3% gross is 2.4% after basic tax.

If your earned income is only just over £1k a month, you can claim half the tax on your savings back from HMRC - on anything up to £13,540 of TOTAL income you should only be paying 10% on your savings interest. See https://www.gov.uk/apply-tax-free-interest-on-savings/10-savings-rate

Archi_Bald

LunaNytshade wrote: »

(dream of future house deposit)

To help your dream forget about cash ISAs for a while (probably years). Take inspiration from people like TartanSaver, and explore the forum regarding interest paying current accounts as well as regular savers.

For example:

A monthly contribution into a 6% regular saver on which you have to pay tax pays you double the amount a Newcastle Big Home Saver ISA does. You say you save £300 a month - you can get up to £800 into 6% Regular Savers. And then £400 into a 4% one, which still pays more net interest than the 2.5% ISA.

Look into the Halifax Reward account, too, as well as switching accounts for signup bonuses.

LunaNytshade

Wow, I guess it really is back to the drawing board.

Thank you all - I shall be rescuing my savings and getting on with my account openings. It's good to know about the 10% savings too and I will definitely be working out where I stand on that

YorkshireBoy

LunaNytshade wrote: »

Wow, I guess it really is back to the drawing board.

This isn't a bad place to start...

http://www.moneysavingexpert.com/savings/which-saving-account?_ga=1.131955852.243881804.1422210277

But in summary it's...

5% current accounts, then
4% current accounts, then
3% current accounts

Then look at regular savers, and decide whether you want to fund these from income, or whether you want to drip-feed them from the above accounts as well (but be aware of any minimum balances on the current accounts for interest tiers).

And then look at ISAs.