cashing in on rewards

markharriers

Hi guys sorry if this has been discussed before but i was just after some tips from people with a bit more knowledge than myself.

I was thinking of opening up a new current account, set up a standing order to fund it, set u two charity direct debits (as my others are all in use) and then switch to first direct to get the cash for switching.

So any thoughts and advice would be much appreciated, my main query is how long would i have to wait before i could switch my new account to first direct?

Also on another note does anyone no if you can have two Halifax reward accounts and get the £5 twice?

Thankyou in advance

colsten

Many people open 'donor' accounts for the explicit purpose to switch the account for a bonus. If it's the first time you switch an account, you can do it as soon as it is 'ready' (e.g. has any requisite DDs etc). If you want to switch it again, check that you don't fall foul of the original switching terms (e.g. Nationwide take the switching bonus back if you switch within 3 months).

Halifax allows 1 sole and 1 joint Reward account.

The 'trick' you are looking for is to read the T&Cs as they will govern your accounts and offers.

markharriers

colsten wrote: »

Many people open 'donor' accounts for the explicit purpose to switch the account for a bonus. If it's the first time you switch an account, you can do it as soon as it is 'ready' (e.g. has any requisite DDs etc). If you want to switch it again, check that you don't fall foul of the original switching terms (e.g. Nationwide take the switching bonus back if you switch within 3 months).

Halifax allows 1 sole and 1 joint Reward account.

The 'trick' you are looking for is to read the T&Cs as they will govern your accounts and offers.

Thankyou for your help i was going to make a donor account switch that to first direct see how long until i get the switch deal then close the account.

Also tempted on the blue rewards with Barclays. But would have to look at setting up maybe a paypal direct debt up?

Eco_Miser

markharriers wrote: »

Thankyou for your help i was going to make a donor account switch that to first direct see how long until i get the switch deal then close the account.

The First Direct account is worth keeping, because it gives you access to the FD 6% Regular Saver account, considered one of the best accounts available. The fee is easily avoided.

markharriers

Eco_Miser wrote: »

The First Direct account is worth keeping, because it gives you access to the FD 6% Regular Saver account, considered one of the best accounts available. The fee is easily avoided.

Hi i was on the understanding that because the 6% is a drip feed account i was better putting the lump sum in a 3% for a year, rather than just earning 6% on £300 once a month. It would be beneficial for small savers but for savers with lump sums the £3600 would earn more in my santander 3% over 365 days, please correct me if im wrong?

slush

markharriers wrote: »

please correct me if im wrong?

Yes, you are wrong.

Why not have multiple Regular/Monthly Savers?
And feed them from a typical 3% account (such as BoS, Tesco or even 123 with its fees).
See the Regular Saving Thread
http://forums.moneysavingexpert.com/showthread.php?t=608697

And have you looked at filling up a few others - TSB Plus (5%) Nationwide FlexDirect (5%) and Lloyds Club (4%)? All would have my piority over a 123 account.

markharriers

slush wrote: »

Yes, you are wrong.

Why not have multiple Regular/Monthly Savers?
And feed them from a typical 3% account (such as BoS, Tesco or even 123 with its fees).
See the Regular Saving Thread
http://forums.moneysavingexpert.com/showthread.php?t=608697

And have you looked at filling up a few others - TSB Plus (5%) Nationwide FlexDirect (5%) and Lloyds Club (4%)? All would have my piority over a 123 account.

Thankyou appreciate your input im learning

I just thought because interest is worked out daily.

I have the tsb plus.

What i was wondering about lloyds club is you get interest in tiers i.e 1% for so much 2% and so on. Would it be overall beneficial maxing a club lloyds getting all these varied rates does the 4% win in the end? rather than a solid 3% from santander?

Thanks for your help

badger09

markharriers wrote: »

Thankyou appreciate your input im learning

I just thought because interest is worked out daily.

I have the tsb plus.

What i was wondering about lloyds club is you get interest in tiers i.e 1% for so much 2% and so on. Would it be overall beneficial maxing a club lloyds getting all these varied rates does the 4% win in the end? rather than a solid 3% from santander?

Thanks for your help

Your thinking sounds quite muddled;)

Club Lloyds will give 4% interest on balances between £4k and £5k. Lower interest rates apply to smaller balances.

Santander 123 will give interest 3% on balances between £3k and £20k. Lower interest rates apply to smaller balances. The monthly charge is increasing from £2 to £5pm in January.

What do you expect your balance to be?

markharriers

badger09 wrote: »

Your thinking sounds quite muddled;)

Club Lloyds will give 4% interest on balances between £4k and £5k. Lower interest rates apply to smaller balances.

Santander 123 will give interest 3% on balances between £3k and £20k. Lower interest rates apply to smaller balances. The monthly charge is increasing from £2 to £5pm in January.

What do you expect your balance to be?

My santander balance is maxed at £20000.

So if i put £5000 in club lloyds then what will the £3000 earn me thats where im getting confused.

badger09

markharriers wrote: »

My santander balance is maxed at £20000.

So if i put £5000 in club lloyds then what will the £3000 earn me thats where im getting confused.

If you put £5k in Club Lloyds, it will all earn you 4% (assuming you meet the other T&C of the account).

markharriers

badger09 wrote: »

If you put £5k in Club Lloyds, it will all earn you 4% (assuming you meet the other T&C of the account).

Right i see i thought they give you 1% on £1,999.99 2% on £2,000 to £3,999.99 then the 4 % on £4000-£5000.
I did not realise they give you 4% on the whole amount.

I thought the 4% was when you have say £5000 in they will give it you on your last thousand.

You have helped me out no end