Changing to Santander 1-2-3 Current Account

compbren

Hi everyone. Just hoping somebody could explain something to me.

I currently have around £18,000 in savings stored in a Halifax ISA account which is generating just 0.25% interest. I also have a current account with Halifax which is the Reward account and gets me £5 per month (£60pa).

I've been with the Halifax for as long as I can remember, since I was a teenager actually and have been investigating other bank accounts and whats the best way to get the best value for my savings.

The Santander 123 account sticks out most for me. I believe I fit all the requirement they're asking for. However, there are a few things that I need advice on:

1) According to Topcashback I can get £32 cash back as a new customer if I use their 'TRANSFER' service. What exactly is this service?

2) How do I transfer my direct debits from my Halifax account to the Santander account?

3) I'll have the full £20k interest limit in there very soon but does this mean that my Halifax current account will be closed? What about my ISA with the Halifax? I've just seen online that I can upgrade that ISA to get 1.25% interest which I then wish to start filling up with when i've reached the £20k limit on the 1-2-3 account.

4) Will it be difficult transferring my ISA funds into the Santander account?

Sorry if I sound thick, but i'm one of these people that has just stuck with the same current account for years and have no realised that there are possibly better providers out there.

Any advice shall be greatly received.

bigheadxx

The transfer service is to transfer a current account over to the 1 2 3. The bank will transfer your direct debits over for you, you need two to get the benefits of 1 2 3. I have just switched to Santander but didn't use the transfer service.

You can still have a Halifax IS A, they run for one tax year only but as soon as you take the money out of the ISA wrapper and put it in santander it no longer accrues interest free of tax.

Archi_Bald

Don't switch your Reward account - you would lose the £60 as it will get closed as part of a switch. Instead open a second account with Halifax (or another bank), and then switch that one to Santander if you want to get the TCB cashback.

If you want to move some existing DDs to the 123, to get cashback on them, you need to move them yourself. Just tell the payees that you have a new sort code and account number and that you want them to use that one now.

Unless you are determined to have money in some ISA, there are plenty of other places that pay better interest. At present, you can get 3, 4 and 5% on up to £50K. http://www.moneysavingexpert.com/savings/savings-loophole

compbren

Thanks. Looking at my Halifax account online. I have two other accouts (Saver Accounts) that I don't use anymore. I could just switch this account to Santander and keep the Reward account? (I thought that you're only ever allowed one current account?).

If that's ok, I can still get my wages paid into my Halifax account (getting the 5 per month) and then transfer the minimum £500 to Santander every month so I get the interest there too? Obviously I would need to transfer the excess from Santander (when it reaches £20k) back into an ISA or something?

Archi_Bald

You can only switch current accounts.

You can swap money between 2 current accounts at different banks to meet the minimum monthly pay-in requirements, no problem.