Saving using multiple current accounts

pocketstrings

Hallo all

I hope this is not too stupid a question - I have tried to find the answer on existing threads but can't find what I'm looking for.

I have seen Martin talking about putting savings in current accounts which have better interest than many savings accounts. My question is - are you really allowed to have more than one current account? Is it then open to you to choose which you use as your 'real' current account and which you just want to use for saving (as long as you comply with any rules like paying in a certain amount monthly etc.)

I changed my current account to Santander, and that's fine for me, but I am actually now thinking of whether my brother might benefit from this multiple current account thing (he has more savings than me.)

Thank you in advance for any tips. :beer:

letThemPlay

You are allowed to have as many as you can get accepted for. There are certain current accounts that even allowed to have multiple of.

As long as you meet the terms and conditions of each account; then there won't be a problem many people including me use multiple current accounts for higher interest on savings.

My current list

First Direct - Bills, Salary, Access to Regular Saver
Halifax Reward - Monthly £5 'interest'
2 x TSB Classic Plus - 5% interest on £2k in each
Nationwide Flexdirect - 5% interest on 2.5k

Future accounts

Lloyd's Club Account - 4% interest on 5k
BOS Vantage - Allowed 3, 3% interest on 5k

As long as you meet the required DD's, and income for each account then it really is the best way to save at the moment.

I use SO to automate the income requirements for TSB's and Nationwide accounts; effectively sending £1k in a cycle through the accounts.

I hope this helps; there are others on here how will be able to list even more accounts if needed.

P.s. I believe TSB have changed the conditions of the Classic Plus account so you are only allowed 1 single rather than 2.

ChopperST

No such thing as a silly question, as they say presumption is the mother of all !!!! ups.

The term "main" current account the bank use is ambigous at best. All you need to do is look at the terms of each institution e.g. minimum monthly credit, DD's etc.

The only concern would be to open several prior to a mortgage application as each would show as a credit check and may make you appear credit hungry.

saver861

As mentioned, you can have as many current accounts as you wish. However, its best to plan it out depending on how much you have to save. Santander will give 3% on balances over £3k to £20k (on the whole balance)

Nationwide will give 5% on £2,500 but only for one year.

Most need you to have two direct debits setup, some such as NW does not.

You also need to pay in a minimum amount each month, which can be as much as £1,500, which can be done easily be standing order moving from one account to the next.

So I would say look at the best options in terms of how much you have to play with.

pocketstrings

So, (and i'm thinking of me now) you could have Santander as your 'main' account, open a Nationwide Flexdirect account and pay £2.5 grand into that to make the most of the 5% interest.

To meet the Flexdirect demands you set up a standing order from the Santander account to pay £1000 into the Flexdirect on, say, the 1st of the month and then, because anything over £2.5 grand earns no interest in the Flexdirect, set up a standing order to pay that £1000 straight back into the Santander account on the 2nd of the month?

That £1000 then just travels back and forth by standing order every month.

is this right?

:beer:

nearlyretired2004

yes - or if you have time on your hands you can do it all by faster payments within a few minutes - in and straight back out again.

Many of us do the £1000 shuffle each month ...... I'm curently shuffling through 19 current accounts - a few less than I was - some Nationwide a/cs have reached the end of their introductory period.....

letThemPlay

pocketstrings wrote: »

So, (and i'm thinking of me now) you could have Santander as your 'main' account, open a Nationwide Flexdirect account and pay £2.5 grand into that to make the most of the 5% interest.

To meet the Flexdirect demands you set up a standing order from the Santander account to pay £1000 into the Flexdirect on, say, the 1st of the month and then, because anything over £2.5 grand earns no interest in the Flexdirect, set up a standing order to pay that £1000 straight back into the Santander account on the 2nd of the month?

That £1000 then just travels back and forth by standing order every month.

is this right?

:beer:

I would stay clear of the beginning of the month, if you had enough money say £1000 in your Santander you could set up the standing orders to be the same day; then you won't have money in your Nationwide not gaining interest where it could in your Santander account.

Edit:

nearlyretired2004 beat me to it

bugbyte_2

Hi, can anyone see a hole in this cunning plan???

Currently, my wife and I have a First Direct Joint account as our only current account.

1. Set up two sole FD accounts in our names with £50 of funds and in each put two dd's (they would be our charity dd's such as wateraid £5).

2. Use Quidco (£40 cash back) to switch each sole account to Halifax (£100 switching reward) thus earning £140 for each account.

3. Fund the Halifax accounts by £750 + whatever the charity dd's are Standing Order from FD, then bounce the money back again, earning £60 py on each account.

Total earned yr 1 £400, yr 2 onwards £120

YorkshireBoy

bugbyte wrote: »

Hi, can anyone see a hole in this cunning plan???

Currently, my wife and I have a First Direct Joint account as our only current account.

1. Set up two sole FD accounts in our names with £50 of funds and in each put two dd's (they would be our charity dd's such as wateraid £5).

2. Use Quidco (£40 cash back) to switch each sole account to Halifax (£100 switching reward) thus earning £140 for each account.

3. Fund the Halifax accounts by £750 + whatever the charity dd's are Standing Order from FD, then bounce the money back again, earning £60 py on each account.

Total earned yr 1 £400, yr 2 onwards £120

I'd do it slightly differently.

Open your FD accounts
Set up 1 or 2 small value SOs from these new FD accounts to your other accounts (savings, credit card, etc), though NOT with FD.
Open 2 Tesco savings accounts each
Switch the FD sole accounts
Then set up the Tesco DDs on the Halifax accounts (sole to sole)
Then open a Halifax Reward joint account
Set up 2 more DDs on this account to Tesco (Halifax joint to one of the sole accounts)

Gets you £60 a year more, and doesn't mess around with Tesco and/or FD too much.

Keep your charity giving separate from your banking activities. Plus, the Tesco accounts would come in handy for Santander and/or Club Lloyds, and also any accounts you each open later to switch to Co-op, (and any more that follow suit).

Depends on how serious you're going to get with it? In short, better plan for the long term!

bugbyte_2

Thanks for the reply, I can see the point of having the tesco accounts just for the purpose of bouncing the DD's back and forth as it keeps everything contained but I would have to cycle through £750 to avoid the £5 charge.

Currently I have:

Cycle £500+
First Direct > TSB Wife > FD

Intermediate Plan - slight change of plan from above:

Cycle £1000
FD > Nationwide Me > TSB Wife > FD (because you get £50 Quidco signup for NW)

Longer Term:

FD > NW Me > TSB Wife > NW Wife > Halifax Wife > TSB Me > Hal Me > FD

£9000 saved + £435 py in interest (Thats 4.8%!) + £300 Signing up and Quidco fees.

Like the idea of an extra £60 for a joint Halifax account, and I could make another £80 from Quidco if I open and transfer tesco accounts to the halifax.

All good fun, and actually worth it when you look at the figures. Wouldn't want to kill my credit rating though by opening too many accounts!

ceredigion

bugbyte wrote: »

Thanks for the reply, I can see the point of having the tesco accounts just for the purpose of bouncing the DD's back and forth as it keeps everything contained but I would have to cycle through £750 to avoid the £5 charge.

No take another look and distinguish between, Current and Savings