What is the Highest Interest Rate / Cashback / Rewards You Can Get?

Jhoney_2

ratechaser wrote: »

Excel is your friend here. Over the past month, I've opened up 7 'donor' current accounts, 11 'real' current accounts, 2 tesco savings accounts, and another 5 linked savers (all sole accounts, my wife thinks I'm bonkers, but hopefully will come around...). I put it all in a spreadsheet, along with the actions that I need to take on a regular basis.

But in very basic terms, this is the order I did things in (I've tailored the commentary below based on what you are saying about wanting to stick to TSB and Nationwide:

1) Open 2xTesco Current and 2xTesco savings accounts. The current accounts are useful for being able to move money out of Tesco (as well as providing a useful home for any additional cash at 3%), but it's the savings accounts you really need because they generate the direct debits you'll need for the TSB/NW account incentives. Okay, I think I missed the savers account. I was too focused on the rate and that I could have 2 sole accounts, no DDs or monthly pay-in to juggle. I will be revisiting this today.

2) Open the TSB and NW Flex direct accounts. I'm pretty sure I got an instant decision on both of them. IMPORTANT POINT ABOUT NATIONWIDE... there is a 'refer a friend' scheme where if you get a referral, you and the referrer also get £100 bonus for opening the account. I'm obviously more than happy to refer you if you wanted to PM me, although to be fair, you will probably get a better deal scouring the referrals board, because there is a whole market in people offering you a percentage of their own bonus money. Personally I find that all a bit grubby (and I say that as a banker...) so it's not a game I'd play! Thanks for the referrals offer/info, alas I have already applied for the NW flexdirect, just awaiting the reader.. Do you think it's too soon to open the TSB account given that the NW account app was done this month.

3) If you don't already have suitable 'donor' accounts that you are prepared to switch to TSB and Nationwide, open them. My own view is that if you have a longstanding relationship with Natwest (as I do) then I wouldn't switch that specific account - anecdotally, it could look good on your credit file to have a continuous history with one bank. I set up an additional current account online with Natwest in about 5 minutes - they are one of the easiest to do if you already have a relationship with them. If I understand this correctly, I will have to create 2 additional accounts to compliment the new accounts? Are the Tesco accounts not an option? I only have the one account which I want to retain. Is this for switching bonuses or to enact the funding of the accounts and to meet ts&cs?

4) Once the 2 donor accounts are open and you have sort code/account details, you can log in to your tesco accounts and set up direct debits (it calls it 'move money in' I believe) to each of the donor accounts. One from each savings account to each donor. Make sure the donor accounts have some nominal funds in them (£20 or so) and don't play silly b*ggers with tiny DD amounts, £5/month seems to be a generally agreed 'good' amount
So only one donor account necessary give I have done the NW already?

5) Wait a few days and then check on the donor accounts that the DDs are showing. Hopefully by that point, you'll also have your debit cards through for them. You may also want to wait until the first DD payments have come out of those accounts, although must admit that I've not bothered myself and it's not caused any problems.

6) Once all the above is done, initiate the account switches at NW and TSB. The NW one is done online and is very straightforward, the TSB one I believe you need to ring them. They will want sort code, account number, and also the donor debit card number. Set it for the earliest available date (7 working days ahead).

7) In terms of the regular savers, I know NW won't let you open one until the switch is complete. I think you can do it straightaway with the TSB one. Anyway, monitor and open as and when you can. I think they are both funded from the current accounts as standing orders. OK, great.

8) In case you haven't already done so, make sure you've got the full £2500 in NW and £2000 in TSB by this point so you're getting the 5% interest. Yes, I intend to fill as soon as they are up and running.

9) In terms of regular funding mechanics (i.e. £1000 into NW and £500 to TSB) you've got a couple of options. Either you can do it manually one day per month using faster payments online, or you can set up standing orders so that you bounce an equal and opposite amount between the 2 accounts. Both options have pros and cons but I prefer the manual method, because faster payments transactions are pretty instantaneous (at least for these 2 banks), and it will take you all of 5 minutes a month to do. Whereas with an automated standing order, you have to consider things like weekends and public holidays. Personally I don't like my accounts having the wrong amounts in them for any more than a few minutes!

10) And finally... make sure you have a spreadsheet to track it all - the progress of account opening, which donor account will move to which 'real' account, what the details of the linked savers are, details of the tesco DD generating accounts, regular funds movements, incentive payments etc. Without that, I personally would have no chance of making this work!

Hopefully that's covered everything, I'm sure the other regulars will help fill in any gaps. Just one question on choice of TSB over first direct or perhaps Halifax - I assume you're intending to make full use of the 5% contactless spend per month? Otherwise not sure that's the best second option after Nationwide...

NO DDs, low payins, good interest, local branch.

Good luck
RC

Thanks so much for taking the time to do this.

On your 9th point, I was thinking about the dripfeeding of the saver accounts in addition to minimum pay - ins and keeping at least the minimum 3K,2.5K etc full to ensure I get the full returns?

This was in relation to using e.g a few Ks to keep rotating aroung the accounts if that makes sense. As per the bottom of this article.

http://www.moneysavingexpert.com/savings/savings-loophole

I lost track completely. So e.g NW current acc, do I put in 2.5 + the 500 for the SO to fund it's regular saver?

This was my 'plan' after much, reading, moments of deep supposed enlightenment and head scratching....

Use Tesco acc(s?) to send 1K to e.g NW ( for the pay in requirement), use 500 for the NW RS and send the other £500 to TSB (again the pay in), where £250 goes into that TSB RS and the remaining £250 returns to To the starter bank(tesco). Now to additionally propose through your help above the tesco current a/c then feeds the 2 ( yet to be applied for) RS there.

Any flaws in the above would be really welcome.:beer:

Perhaps I am complicating the simple but the donor accounts and plans you have kindly provided are waaay above my understanding at this point, lol.

Really appreciated and you have given me a lot of information and pointers to work with!

Jhoney_2

ratechaser wrote: »

Ah.... I WAS going to say that it was a requirement to get the switching bonus, but I've just rechecked, and it looks like that particular offer has expired. So it would appear that the TSB account process is a bit simpler now, if £100 less valuable than when I opened mine!

Great, does that mean I can forego the donor acc elements?:j

ratechaser

Jhoney wrote: »

Great, does that mean I can forego the donor acc elements?:j

You can indeed. Although to my mind that does slightly marginalise the value of the TSB account relative to (for example) Halifax or First Direct, but it is a simpler option to get up and running.

As to your other questions, it looks like you are further along than I thought... pity about the Nationwide referral miss, that's one of the better offers overall. In terms of timing of opening the TSB account, all I can say is that I opened the best part of 20 accounts within a month with no issues at all. Depends on how good your credit file looks.

Given that you're already there with the NW switch and the TSB account needs no DDs because you're not chasing a switch bonus, you can basically forget what I said about Tesco savings accounts (to try and keep it a bit simpler!) - not needed any more!

As far as dripfeeding the RS accounts, yes you could just make that a part of the overall funding cycle. So for me, I've got about £2500 a month that starts out from one bank, but only about £1000 makes it back again after doing the rounds, because I'm 'dropping' £250, £300, £400 etc here there and everywhere along the way to fund the RSs

Jhoney_2

ratechaser wrote: »

You can indeed. Although to my mind that does slightly marginalise the value of the TSB account relative to (for example) Halifax or First Direct, but it is a simpler option to get up and running.

As to your other questions, it looks like you are further along than I thought... pity about the Nationwide referral miss, that's one of the better offers overall. In terms of timing of opening the TSB account, all I can say is that I opened the best part of 20 accounts within a month with no issues at all. Depends on how good your credit file looks.


Given that you're already there with the NW switch and the TSB account needs no DDs because you're not chasing a switch bonus, you can basically forget what I said about Tesco savings accounts (to try and keep it a bit simpler!) - not needed any more!

As far as dripfeeding the RS accounts, yes you could just make that a part of the overall funding cycle. So for me, I've got about £2500 a month that starts out from one bank, but only about £1000 makes it back again after doing the rounds, because I'm 'dropping' £250, £300, £400 etc here there and everywhere along the way to fund the RSs

Really? I wish I felt as confident about it.

My credit file is v.good - I got an instant yes from NW and the only reason it is not excellent is because I do not have a credit card by choice - Having spent time looking around the boards in recent months, I may well get one at some point after my mortgage app is done later in the year.

If 20 new a/cs are anything to go by (:eek:), I will be doing the rest over coming days/weeks, lol.

Do you mean forget about setting up the donor accounts or the Tesco RS accounts?

Yes, only £250 will return to the originating Tescos account in my scenario for the reasons you describe.

In that way, I send in/out 1K which splits up etc and then thought I could do a manual top up from the tesco current account into the tesco savers to the maximum monthly saving amount allowed?

Wow, I am listening to my own thought process and I sound like a different person? I hope this makes sense to you at least!

ratechaser

Jhoney wrote: »

Really? I wish I felt as confident about it.

My credit file is v.good - I got an instant yes from NW and the only reason it is not excellent is because I do not have a credit card by choice - Having spent time looking around the boards in recent months, I may well get one at some point after my mortgage app is done later in the year.

If 20 new a/cs are anything to go by (:eek:), I will be doing the rest over coming days/weeks, lol.

Do you mean forget about setting up the donor accounts or the Tesco RS accounts?

Yes, only £250 will return to the originating Tescos account in my scenario for the reasons you describe.

In that way, I send in/out 1K which splits up etc and then thought I could do a manual top up from the tesco current account into the tesco savers to the maximum monthly saving amount allowed?

Wow, I am listening to my own thought process and I sound like a different person? I hope this makes sense to you at least!

Yes, makes sense, and based on my current understanding, you don't need Tesco RSs or donor accounts. That may of course change if you get the bug and decide to chase other bank account incentives like I did...

Jhoney_2

ratechaser wrote: »

Yes, makes sense, and based on my current understanding, you don't need Tesco RSs or donor accounts. That may of course change if you get the bug and decide to chase other bank account incentives like I did...

Due to my reluctance to open too many bank accounts, I want to pick up the RS where they are available/linked to one I am applying for already. Having said that, I haven't checked the rate yet:money:, but theres more in the pot to find a good rate for and it can't be any worse than my main account! Also plan to use this years ISA allowance before thedeadline.

Just applied for another one, so that bug is definitely catching:T

Jhoney_2

Last question if someone can help from experience.

I have just remembered that I have two of these, along with the main account which I wish to keep. There are no debits etc on them and they are empty (£1 in what I think is the newer one).

Can I use them to switch? I ask because the main account really needs to be unaffected by that. I know it seems obvious as the sort code and acc numbers are different, but I would like to be sure!

That would mean I potentially have 1 or 2 'donor' accounts ready and waiting rather than more applications.

I was thinking of a switch to First Direct if that helps and the weekend deadline is looming on the £150.:)

Thanks

bigadaj

Should be fine, I've got two 123 accounts and have opened two everyday accounts, one switched and one being switched.

I'm a bit wary about taking the mickey too much, but I opened and switched these accounts in a few weeks with no issues.

Jhoney_2

Just realised, the everyday accounts are savers - not current accounts! Bah..

bigadaj

Jhoney wrote: »

Just realised, the everyday accounts are savers - not current accounts! Bah..

Oh no they're not.....