Q's About Sorting Bank Accounts

TakeNoRoses

I'm about to undertake sorting out my bank accounts to maximise my interest earnings. :j

I have a few questions:

For the switchers - do I need to switch from a current account, or can I use a savings account? If I need a current account what is the best account to open to switch with. (I have two savings accounts I don't need any more but haven't yet closed.)

I'm planning to utilise the put money in, take it out to put it in the next bank account method. What I wanted to know was if you put the money in (say £500), took it out, then put the same amount back in to hit the £1,000 minimum pay-in would that work?

Also what do you use as your 'base of operations', for when you need to put some extra cash in (as I only earn £1,100-£1,300 a month). I am considering using the Tesco Internet Saver as I have it already.

How much do I need to start this off? If I have £5,000 easy-move money at the moment is that enough?

I'm thinking of using these accounts eventually (but will set them up one by one so I don't crash and burn):

• Club Lloyds + Reg Saver (I have a Lloyds Current Account already so will upgrade). £1,500 pay in, £400 reg saver.
• First Direct + Reg Saver (need a switcher account if can't do a savings to current switch). £1,000 pay in, £300 reg saver.
• TSB 5% on £2,000 account. £500 pay in.
• Nationwide 5% on £2,500 (for 1 year). £1,000 pay in.

Also, it's almost ISA time, so I guess I'll need to put as much as I can into an ISA at the end of March, that's why I need to know a min. amount for this method.

I apologise for the novel. Any other information I'm missing please point out to me, I'm a bit of a noob at this.

Archi_Bald

TakeNoRoses wrote: »

For the switchers - do I need to switch from a current account, or can I use a savings account?

the switching service exists for current accounts only. You do not have to switch if you want an interest-paying current account. You may want to switch for the switching incentives. Most interest paying current accounts do no offer a switching incentive, and most accounts that offer switching incentives do not pay interest.

Any current account will do for switching.

TakeNoRoses wrote: »

I'm planning to utilise the put money in, take it out to put it in the next bank account method. What I wanted to know was if you put the money in (say £500), took it out, then put the same amount back in to hit the £1,000 minimum pay-in would that work?

well, £500 plus £500 is £1,000

TakeNoRoses wrote: »

Also what do you use as your 'base of operations'

any of your accounts that has got money in them

TakeNoRoses wrote: »

How much do I need to start this off? If I have £5,000 easy-move money at the moment is that enough?

It's enough to fill, for example, a TSB Plus and a Tesco current account. Other options exist for £5K, such as Santander 123, Club Lloyds, BOS Vantage

TakeNoRoses wrote: »

I'm thinking of using these accounts eventually

remember that regular savers can drain your current accounts to below the amount you earn interest in them

TakeNoRoses wrote: »

Also, it's almost ISA time, so I guess I'll need to put as much as I can into an ISA at the end of March

Why???? ISA rates are dire and will remain so for some time to come. As you have only £5,000, you are way below the annual ISA allowance and there is no point in wasting your cash on cash ISAs.

TakeNoRoses

Archi_Bald wrote: »

Most interest paying current accounts do no offer a switching incentive, and most accounts that offer switching incentives do not pay interest.

Any current account will do for switching.

Thanks, I'll find a random one then. The only one I need a switcher for is the First Direct which offers a 6% regular saver and currently a £125 switch bonus (plus £100 bonus if you choose to leave them within the year - but after six months of paying £1,000 in).

Archi_Bald wrote: »

well, £500 plus £500 is £1,000

Touche. :rotfl:

Archi_Bald wrote: »

It's enough to fill, for example, a TSB Plus and a Tesco current account. Other options exist for £5K, such as Santander 123, Club Lloyds, BOS Vantage

Santander isn't a huge boon for me as I live with my parents, so the only 'bill' I pay is rent at the moment. I will consider it in the future when my savings grow. I will have to look up the BOS Vantage, it doesn't ring a bell.

Archi_Bald wrote: »

remember that regular savers can drain your current accounts to below the amount you earn interest in them

Yep, I'm going to be making sure I'm transferring enough to cover that, thanks for the heads up though!

Archi_Bald wrote: »

Why???? ISA rates are dire... there is no point in wasting your cash on cash ISAs.

Only because I feel like I should. Okay then, I'll give it a miss for this year. I'll put in any extra in next year's ISA allowance if the good accounts won't cover what I've saved.

Thank you for the advice! Much appreciated.