Dilemma: Constantly Switch Current Accounts for Bonus or Stay With Best Service

Drunk_Dancing_Monkey

Hi Everyone,

New to the forums and have a bit of dilemma that I can't decide on and thought I would pitch it to all of you for some advice.

I opened a First Direct account 1 year ago got the £125 joining bonus and put £300 away each month into the 6% Regular Savings Account that is linked to it, which has just come to the end of the 12 month period and the interest has been paid on it. Now effectively I have used First Direct for all its worth in regards to getting the most money from them, but now it means I will earn no interest and get nothing more from them except the great service, which I love and want to keep, however with the amount of free cash bonuses up for grabs it seems that I might have to change.

My dilemma at the moment is that everything about first direct is great from a service perspective, I can do everything I want with it via internet banking, the on the go app and the 24/7 phone number. But I also want to take advantage of the free joining bonuses other banks offer, so was thinking of switching to each of the other joining bonuses banks one by one (to get he free cash) then switching back to first direct (to get the service) afterwards. Has anyone else done this, how long does it take to get al the free cash and most importantly how much of a hassle is it as I need to use my bank card pretty much everyday.

The other alternative I have thought of is switching to the Santander 123 account as I can take my £3000+ from Regular Savings account and earn 3% on that, however as I live in rented accommodation I only have one acceptable DD, a gas an electric bill, apparently GiffGaff DD is not accepted and I might be changing houses in the next few months anyway so dont know what the bill situation would be in a new rented property.

Any advice would be appreciated. Thanks!

NoMore

If you happy with FD just open another account with somebody with the explicit purpose of switching this account to get switching bonuses.

Loads of people do it on here, hence the constant mention of open a donor account.

ricz_1

A little off topic but can't you open a new First Direct 6% regular saver and start drip feeding it again?

Have to agree with NoMore, keep FD and switch using a new sacrificial account.

cheexy

I always open a new FD Monthly saver everytime the 12 months elapses and transfer the 3600 into an account that pays high interest and then start afresh with the new FD monthly saver. What this does is allow me accumulate more funds than I would have if I was just drip feeding the bulk sum previously accumulated in the preceeding period.

Re: switching account - nothing stops you from opening a donor account with FD and switching that one. A lot of people have done this including me.

phil7445

Is there a particular bank account people recommend that is easy to open online as a donor account to them immediately switch to others?

I'm trying to encouraging a friend to switch to Co-Op bank then M&S bank for their offers. He doesn't want to close his current account or do a salary switch and think those are the only two that don't require salary switch now that Clydesdale/Yorkshire seems to have closed.

cheexy

phil7445 wrote: »

Is there a particular bank account people recommend that is easy to open online as a donor account to them immediately switch to others?

I'm trying to encouraging a friend to switch to Co-Op bank then M&S bank for their offers. He doesn't want to close his current account or do a salary switch and think those are the only two that don't require salary switch now that Clydesdale/Yorkshire seems to have closed.

TSB took just 1 working day for me for the first few but the last one took 3 working days. FD took 2 working days and I am an existing customer. I believe that it depends on your existing relationship with the bank and credit rating.

NoMore

No bank requires 'salary' switch, they may require a minimum deposit which they hope will be your salary but it can come from anywhere and doesn't have to stay in the account for very long. So you could leave your salary as is, and just transfer the required deposit as needed and transfer straight back again.

ricz_1

It really depends how long a bank takes to send you a debit card for your new account as you usually need to include the debit card number of the bank account you wish to switch from.

I've always used Santander Everyday accounts to switch from as I already hold my main account with Santander. If you specify that you don't want an overdraft you may even get away without a credit check (don't hold me to this though). If I remember rightly last time I opened one of these online the account opened almost immediately and the card was sent to me 3 - 4 days later.

Drunk_Dancing_Monkey

Hi Guys,

Thanks for all the information. Can you please explain what you mean by a 'donor account'. Is this like keeping my first direct account, which will be my main bank account that I continue to use everyday and have my salary paid into, then open accounts with other banks and set up a standing order from my FD account to the other account(s) to cover the minimum monthly deposit?

If this is the case then that sounds ideal for getting the sign up cash bonus for each bank without having to change my main bank account. Also I wasnt aware that you can start up another 6% Regular Saver Account once the 12 months of your first one are finished. Have other people done this and do you have to start from 0 again and add the 300 each month until you 3600?

NoMore

Yes you open another (or multiple) current account, doesn't have to have any special deals. This is your donor account, you the switch this account to get your bonus.

MARTYM8`

phil7445 wrote: »

Is there a particular bank account people recommend that is easy to open online as a donor account to them immediately switch to others?

I'm trying to encouraging a friend to switch to Co-Op bank then M&S bank for their offers. He doesn't want to close his current account or do a salary switch and think those are the only two that don't require salary switch now that Clydesdale/Yorkshire seems to have closed.

RBS/Natwest have very quick online application processes - they also do online ID verification so have a passport and a debit/credit card handy for that. I applied for a Natwest account online once on a Thursday afternoon - by the Saturday morning I had my debit card.

The only requirement - bar paying in certain amounts post switch - is that the Co-op insists two active direct debits to come in via the switch. The rest - currently - have no such requirements and no restrictions if you haven't recently received an incentive from them.

Personally I would encourage your friend to go for the Halifax first - it pays out quicker - and use the time to set up some direct debits and then transfer to the Co-op after. The Halifax is paying £125 until 6 April - it may fall back to £100 then or end.

The CB/YB offer has been pulled - but it is rumoured may reopen on Monday week.