Switching current accounts and transferring between four accounts?

xbethany

I currently use Santander Graduate Account as my 'main' account, ie the one my wages are paid in to.

I was looking at the Halifax Reward Current Account and the £5 a month plus £100 switching reward looks very tempting. I was wondering if I could open the Halifax Reward account and use the switching service to switch from Santander to Halifax but still keep my Santander account open? Or would it close automatically?

I was thinking if I have the Halifax Reward account I could have my wages paid into that, then transfer £1000 into the Nationwide FlexDirect account (5% interest on £2500), then £500 to the TSB Plus account, then have £250 go into my TSB Monthly Saver (5% on £2000), and transfer the other £250 back into the Nationwide FlexDirect, or if/when I have £2500 in that account, transfer it into my Santander Graduate Account (3% interest on £2000).

So my wages would be paid into the Halifax one, I'd 'fill up' the TSB and Nationwide accounts at 5% each, then the Santander at 3%, then (when I have over £6500 in those three) I'd just keep the rest in the Halifax one (or any one really, I suppose it would make no difference).

Would all that be feasible, and would it be worth it having four accounts open?
If it makes any difference, I'd probably be closing three accounts in either Jan or March 2017 when I go to New Zealand for a year and a half (which is what I'm saving up for).

Also, the Halifax one says I need two direct debits, I only have one at the moment, I've heard people say I could set up a cheap DD to a charity each month, would that count?

Also (again), I opened my TSB account in September, will open the Nationwide one this month, and would be opening the Halifax one in either December or January, would that show up on the credit check thing, and if so would it look suspicious? (I don't know much about these things, I've had the same Santander account since I was 16 and have never been overdrawn or taken out a loan or anything).

dggar

xbethany wrote: »

I currently use Santander Graduate Account as my 'main' account, ie the one my wages are paid in to.

I was looking at the Halifax Reward Current Account and the £5 a month plus £100 switching reward looks very tempting. I was wondering if I could open the Halifax Reward account and use the switching service to switch from Santander to Halifax but still keep my Santander account open? Or would it close automatically?

I was thinking if I have the Halifax Reward account I could have my wages paid into that, then transfer £1000 into the Nationwide FlexDirect account (5% interest on £2500), then £500 to the TSB Plus account, then have £250 go into my TSB Monthly Saver (5% on £2000), and transfer the other £250 back into the Nationwide FlexDirect, or if/when I have £2500 in that account, transfer it into my Santander Graduate Account (3% interest on £2000).

So my wages would be paid into the Halifax one, I'd 'fill up' the TSB and Nationwide accounts at 5% each, then the Santander at 3%, then (when I have over £6500 in those three) I'd just keep the rest in the Halifax one (or any one really, I suppose it would make no difference).

Would all that be feasible, and would it be worth it having four accounts open?
If it makes any difference, I'd probably be closing three accounts in either Jan or March 2017 when I go to New Zealand for a year and a half (which is what I'm saving up for).

Also, the Halifax one says I need two direct debits, I only have one at the moment, I've heard people say I could set up a cheap DD to a charity each month, would that count?

Also (again), I opened my TSB account in September, will open the Nationwide one this month, and would be opening the Halifax one in either December or January, would that show up on the credit check thing, and if so would it look suspicious? (I don't know much about these things, I've had the same Santander account since I was 16 and have never been overdrawn or taken out a loan or anything).

The switching service will close the account being switched.
In your case the Santander account will be closed.


If you wish to retain your Santander account will need to switch another account to the Halifax.


I call such accounts "sacrificial accounts" and would open up a basic account to use for this purpose.


As you already have a TSB account(presumably the Plus account) you should have no difficulty in opening a basic TSB account and then sacrificing that in a switch to Halifax.


Can't remember if you have to have a Nationwide Flex account before you can open a Nationwide Flex Direct account.


Nationwide will allow you to have 4 accounts, so you can have 3 Flex accounts (2 of which are available for future switching) and a Flex Direct account.

Kim_13

For the DD, I would suggest a Tesco Internet Saver. It's a savings account so the only check they'll do will be for identity purposes.

It pays some interest so any excess funds could go into it, while you'd also be saving on paying out a second DD.

Archi_Bald

dggar wrote: »

Can't remember if you have to have a Nationwide Flex account before you can open a Nationwide Flex Direct account.

you don't
characters

xbethany

dggar wrote: »

I call such accounts "sacrificial accounts" and would open up a basic account to use for this purpose.

As you already have a TSB account(presumably the Plus account) you should have no difficulty in opening a basic TSB account and then sacrificing that in a switch to Halifax.

If I opened a 'sacrificial account' that would mean I'd have opened four new current accounts in under four months! Would that show up on the credit check thing? Ir if I opened a TSB one would they not do the credit check since I already have an account with them? (Like I said, I don't know anything about this.)

Kim_13

xbethany wrote: »

If I opened a 'sacrificial account' that would mean I'd have opened four new current accounts in under four months! Would that show up on the credit check thing? Ir if I opened a TSB one would they not do the credit check since I already have an account with them? (Like I said, I don't know anything about this.)

A sacrificial account would mean another credit search, whether it was with an existing or new provider.

Another option is to wait and go for a switching incentive when you're no longer eligible for a graduate account (assuming they're still available then.) The Halifax one has been around for a few years now, either as £100 or £125. It's open to new and existing Halifax reward customers at present, so as things stand there's nothing to stop you benefitting from the reward now and switching when you're ready.

dggar

xbethany wrote: »

If I opened a 'sacrificial account' that would mean I'd have opened four new current accounts in under four months! Would that show up on the credit check thing? Ir if I opened a TSB one would they not do the credit check since I already have an account with them? (Like I said, I don't know anything about this.)

I'm not clear as to what accounts you have open and what accounts you are thinking of opening.


in my experience of Nationwide, when I applied for a second account on line I was accepted and given the sort code and account number at the end of the process. My son and daughter have also applied for second accounts with Nationwide and been give the account details straight away.


When I first applied for a TSB account on line I was rejected.
I went to a local branch and applied in person the next day and was accepted. I was then able to apply for another account on line without any problems. (in those days you were allowed to hold 2 TSB Plus accounts).


I'm not in a position to say whether doing this will affect credit checks.

colsten

Kim_13 wrote: »

A sacrificial account would mean another credit search, whether it was with an existing or new provider.

Searches for current account applications probably only matter if you do several in a short space of time, and only if you are planning to apply for more credit, such as a mortgage, in the next 6-12 months. I don't think one search for one application matters at all.

Katiehound

Sounds like an awful lot of work if you are going to close them all in January!

yes, a DD can be to a charity- but do remember it is a charity and has admin charges.
If you are only going to do a small DD Tesco seems to fit the bill
Halifax needs 2 x DDs to go out every month to qualify for £5
TSB Classic current is paying 5% on £2000-but all online to qualify