Cycling/switching accounts

M0ney

Hi,

Slowly but surely I'm building up current accounts for switching as well as decent interest rates on my money, I'm also on my 3rd FD regular saver and have just successfully applied for an HSBC advance so that I can get a save together ISA.

Anyway, I'm thinking it would be a good idea to get my money moving automated somewhat, currently I keep my 2 TSB C.As topped up to £2000 by default so this is what I was thinking...

TSB (1) £1750 ---> HSBC adv £1725* ---> B.O.S £1650** ---> Clydesdale £1650 ---> Nationwide £1650 ---> TSB (2) £1650 ---> TSB (1)

* £25 going to save together ISA
** £75 covers 2 x DDs

I've been fairly slow on the uptake of switching current accounts the next two I have in my sights are COOP and Marks & Spencer, to switch to them I was planning on opening a sacrificial basic TSB C.A

I just wanted to know if there were any comments on this or if anyone could suggest anything worth doing to make the most of the offers that the banks currently have?

colsten

BOS doesn't need any DDs.

You are unnecessarily depleting your TSB 1 account by £100 each month.

M0ney

In order to get the £5 monthly reward do you not need 2 DDs?

Both TSB accounts currently have £2000 in them, my main current account is with FD so I guess to get around that I could make a S.O for £100/month to keep it topped up.

colsten

Apologies, I didn't realise you are talking about BOS Rewards - which definitely needs 2 monthly paying DDs. I wrongly assumed it's BOS Vantage you are referring to. The DDs don't have to be for £75. £1 each would be enough.

You are still depleting your TSB 1 by £100 (minus the interest) a month as you pay out £1,750 and pay in £1,650.

YorkshireBoy

Why not pair them up for SOs, rather than daisy chain them?

£500.......TSB1>TSB2
£506.50...TSB2>TSB1
£13.........TSB1>somewhere else!

£1,000.....Clydesdale>Nationwide
£1,008.....Nationwide>Clydesdale
£12.........Clydesdale>somewhere else!

Alternatively, drop your balances by £50 on each of the above accounts, and leave your SOs at £500 on TSB and £1K on the others. Then just log in twice a year and cream off the interest manually from all 4 accounts.

Figures assume you're a BR tax payer.

Then do your BoS Reward and HSBC manually from FD.

M0ney

YorkshireBoy wrote: »

Why not pair them up for SOs, rather than daisy chain them?

£500.......TSB1>TSB2
£506.50...TSB2>TSB1
£13.........TSB1>somewhere else!

£1,000.....Clydesdale>Nationwide
£1,008.....Nationwide>Clydesdale
£12.........Clydesdale>somewhere else!

Alternatively, drop your balances by £50 on each of the above accounts, and leave your SOs at £500 on TSB and £1K on the others. Then just log in twice a year and cream off the interest manually from all 4 accounts.

Figures assume you're a BR tax payer.

Then do your BoS Reward and HSBC manually from FD.

I quite like that suggestion, in the last 2 months I've lost around £15 due to poor management of this and my list of current accounts has grown this month with the addition of Clydesdale and HSBC so I need to get something in place before I either lose out on more or worse go negative in one of them. I'll still have plenty room in the Nationwide account for a couple months yet at least so I could put any excess in there.

YorkshireBoy

M0ney wrote: »

I'll still have plenty room in the Nationwide account for a couple months yet...

Shouldn't you move some cash from CB to Nationwide?...since you're only making 2% AER at CB and Nationwide pays 5% AER.

M0ney

There's nothing in Clydesdale at the moment, just used it for the switching incentive, won't plan on keeping any money in it until the Nationwide has had its 12 months, it might become interest free soon too if upgrade to their signature account thing I need to move some money through Clydesdale so that the switching bonus is paid but other than that I could probably allow Clydesdale to site dormant for a while, except for the £15/month if I upgrade the account.

YorkshireBoy

M0ney wrote: »

...I need to move some money through Clydesdale so that the switching bonus is paid

You must have gone for the revamped switch incentive then, along with switching 2 DDs, ie this month?

but other than that I could probably allow Clydesdale to site dormant for a while, except for the £15/month if I upgrade the account.

£13.50?

M0ney

Yeah, 2 mistakes there, must've got up too early this morning, £13.50 and yes they've got DDs into the account so I'll need to pay the money in before the 1st April.

badger09

Don't forget the HSBC Advance Regular Saver account. Up to £250 pm @ 6%