Not sure which current account is best for me?

danlightbulb

Hi all,

I want to switch current accounts to get a switching bonus. I'm currently with Santander.

I also plan on saving around £350 per month. I currently have £350 in a savings account to move over. I also have about £10k of CC debt which is on 0% for at least the next year.

I can't decide which of the top picks is best for my situation. A 5%/6% linked saver seems good but can I save £350 into one, and can I withdraw that money if I need it, or save more or less than this depending on circumstances?

I don't want to save by standing order, I want to manually transfer the money at the end of each month (because some months I might save more or less).

I also don't want to leave the money sitting in a current account as I want a separate savings account (or be able to segregate the savings somehow).

I don't know if I'd be better off with some interest or a regular £5.

And obviously I want a decent switching bonus too.

Any advice?

Thanks
Dan

pinkdalek

Depends on if you have direct debits or a certain amount going in your existing account to qualify for the incentives.

Halifax's does not have any conditions, so long as you use their switch.

But TSB, Yorkshire for example need a minimum number of direct debits and a set amount going in each month.

If you can be bothered you could work smart, open a couple of current accounts with either Santander (easy as you are with them) or another bank with no incentive and then switch those to the different banks. You could make easily £300-£500, which is not to be sniffed at.

Regarding the savings, check around if there are any deals with other banks/building societies as you don't always need to save with the same bank.

danlightbulb

I didnt know i could have more than one current account.

I have lots of direct debits (all my household bills etc) and can meet the min pay in amounts no problem. Seems complicated though to have different current accounts and have different DD's going from each one.

How would I go about setting this up to get £500 in switching bonuses?

Regarding the savings, many of the linked savers have a maximum of £250 and you need to pay in by standing order, which I don't want to do. But the rates are double the next best savings accounts. Also, what happens at the end of the year when promotional 5% rate is over? Do I switch my savings to another account somehow?

grumbler

bonuses

You can set this up by switching sequentially (first to the banks that offer bonuses, but not much other benefits). Or you can open new accounts, e.g. with your current bank), change some DDs to them if needed, then switch them to new banks.

danlightbulb

Ok but then I'd also need to set up standing orders for each one to meet the minimum pay in amounts is that right?

Is there a minimum period after you've switched before you can switch again? I'd have thought switching every 2 months wouldn't get you £100/£150 each time? I assume you can't switch back to a bank you've just switched away from?

grumbler

danlightbulb wrote: »

Ok but then I'd also need to set up standing orders for each one to meet the minimum pay in amounts is that right?

First you have to decide whether you need more than one account, although it's advised to have at least two.
If it's more than one and there are monthly funding requirements to meet, than you can do this by manual transfers or by standing orders.

Is there a minimum period after you've switched before you can switch again? I'd have thought switching every 2 months wouldn't get you £100/£150 each time?

Yes, but the number of bonuses on offer isn't unlimited.

I assume you can't switch back to a bank you've just switched away from?

You can, but normally you won't get a bonus.

danlightbulb

Right so I pay in 2400 each month to my CA at the moment, and everything comes out of this. I need a minimum of 2 DD's coming from each account is that right?

So my rent is £525 but thats paid by standing order so won't count as a DD.

My other bills are all DD, but only total about £350. Not enough on its own to meet the min pay in criteria.

CC payments total £220 so again not enough on its own (but >£500 if combined with the above bills).

So looks like one additional CA is doable but to get 2 more will need monthly jiggery pokery? In total I have 13 DD's and 2 standing orders. How many accounts would you think I could run sensibly (without getting myself into a maintenance nightmare)?

grumbler

danlightbulb wrote: »

Right so I pay in 2400 each month to my CA at the moment, and everything comes out of this. I need a minimum of 2 DD's coming from each account is that right?

About. The requirements can be different for different banks.

My other bills are all DD, but only total about £350. Not enough on its own to meet the min pay in criteria.

CC payments total £220 so again not enough on its own (but >£500 if combined with the above bills).

Bills and CC payments have nothing to do with 'min pay in criteria'.

How many accounts would you think I could run sensibly (without getting myself into a maintenance nightmare)?

You know this better than anybody else.

danlightbulb

grumbler wrote: »

Bills and CC payments have nothing to do with 'min pay in criteria'.

I was thinking about how I would combine my SOs and DDs together in one account so I could pay in an amount to meet the minimum payment criteria without cycling money around.

So my rent is £525 and i have contents insurance DD (£5) and a life insurance DD (£7). This could be one CA? 2 DD's and 1 SO out of it, and I pay in £537 per month after my wages come in, by standing order out of my main account.

I have a child maintenance SO to my ex wife which is £440. I could combine this with my credit card payments (3xDDs) at £220 to make £660 which I pay in again out of my main account. Thats two new CAs so far.

I could possibly make a 3rd using my other DD's like TV, car insurance etc.

Sorry for the detail, but am I on the right lines about how to physically set this up?

So I would first open these new current accounts with Santander and get the various SOs and DDs set up onto the new accounts. Then I'd switch them all to get 3 lots of switching bonuses? Is that the right process?

Lets say I create 3 new CAs with Santander for a total of 4 (inc my initial acc). Can I switch them all to the same bank so they are in the same place, and get a switching bonus for each one? Or do I need to switch them all to separate banks?

I don't think linked savers will be any good for me because I don't want to save by SO. But I think I'll come back to this later so as not to mix it up with my CA switching.

grumbler

danlightbulb wrote: »

I was thinking about how I would combine my SOs and DDs together in one account so I could pay in an amount to meet the minimum payment criteria without cycling money around.

Don't overcomplicate things. It's just one extra transfer - manual or automatic.

danlightbulb

I'm sorry then I don't understand what you are suggesting.

I know I need to transfer money once I get paid into whatever new accounts I set up. But don't I have various bills coming out of these various other accounts as well? Or do I just keep those coming out of the main account as they are at the moment?