Advice - Switching

Flixton86

Hi - I am very much a novice at this saving game so I am after some advice.

I currently have a HSBC advance current account. I have had this account for years and want to keep it as my main current account. I have also just set up a loyalty ISA with HSBC which I plan on transferring £25 a month to to gain the £10 per month bonus.

I want to set up another current account for a few reasons, but mainly to transfer a (not significant) amount per month to save for a holiday later in the year. I mainly want to take advantage of a switching offer on this account.

Am I correct in thinking I can open another account with HSBC, switch that account to say First Direct, and earn £100 bonus by transferring one £1000 payment into it in the 1st three months?

I would then move the £1000 back out of the FD account back to HSBC account. I would attach no DDs to the new account.

Would all this work to gain the £100 bonus? I think there is a catch somewhere.

I also plan on transferring to my HSBC ISA c.£8.5k I have sat in a Nationwide ISA earning no interest at all.

Is the above a sensible plan, or am I missing a trick?

Thanks very much.

YorkshireBoy

The only current account paying a switch incentive and decent interest (5% AER) is Nationwide FlexDirect, via a referral from an existing account holder (£50 each). You could chance doubling up (and more) with a cashback site such as Quidco or Topcashback.

None of the others paying a switch incentive (FD, M&S, Co-op, Halifax) pay decent rates on instant access 'savings'. YB/CB Current Account Direct is a little better, being as it pays a £150 switching incentive and 2% AER interest.

So it seems you perhaps need to do a little more research?

If your savings are "not significant", I'd wager you could make more in switching incentives (possibly around £600-700) than you would in interest before your holiday. Although you may have to run them in parallel rather than one after the other to get them in time.

EDIT: Re the "catch", there isn't one...so long as you read, understand, and adhere to the T&Cs. Re FD, a friend of mine recently switched to them and got their incentive 9 days later. Halifax is even quicker...next day! It really is that easy!

Flixton86

Thanks.

I am not so concerned with the interest rates in the second current account. What I am not so clear about is can I open a new account with HSBC with nothing attached to it, and switch this account to CB as you mention above to get the 150?

How long after opening this account with CB could I then switch this account to say Halifax to earn their bonus?

YorkshireBoy

Flixton86 wrote: »

What I am not so clear about is can I open a new account with HSBC with nothing attached to it, and switch this account to CB as you mention above to get the 150?

Yes. Many have done this, as you'll see when you read the YB/CB thread just a little lower down the page.

How long after opening this account with CB could I then switch this account to say Halifax to earn their bonus?

Is there a minimum time you must continue to hold the account before switching out stated in the CB switching incentive T&Cs?

Archi_Bald

Flixton86 wrote: »

I want to set up another current account for a few reasons, but mainly to transfer a (not significant) amount per month to save for a holiday later in the year.

As an HSBC Advance customer, you have access to their 6% AER Regular Saver that takes up to £250 a month. Although you need to commit for 12 months.

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