Switch from Santander 123

enthusiasticsaver

Can I ask for advice from those of you who have multiple current accounts?

I have two Santander 123 accounts (1 joint and 1 sole account) and now the fee has increased I am going to use the £150 switching bonus to move one of the accounts from Santander to First Direct. Both of my Santanders have £20k in them.

The direct debit cashback will more than cover the new fee on one Santander 123 account but not two but I then have to find a home for £20k divided between Lloyds Club, Bank of Scotland and as a last resort Tesco if they let me have more than one.

I don't want to keep a lot in First Direct as they don't pay interest but I think I can avoid the £10 monthly fee if I pay in £1k a month. Is that correct? I will therefore need to do some standing orders each month to comply with this, £1500 to Club Lloyds and £1k to Bank of Scotland.

If I want to divide my £20k between Club Lloyds and Bank of Scotland which of these will let me open more than one bearing in mind the maximum is £5k so I need 4 ideally?

Also can you open more than one Tesco current account?

I already have Nationwide, TSB and Tesco and cant open any in my OH name as he will not do that and he is a higher rate tax payer anyway.

Anything else I need to think about apart from usual funding and direct debit restrictions? I can sort those from standing orders being rotated and Tesco internet savers, other direct debits etc.

[Deleted User]

Yes, you can have more than one Tesco current account, maximum of two. I have two sole, but it could be one sole and one joint. If there are 2 of you, best bet would be 2 sole each, giving you 3% on £12K

[Deleted User]

Apologies, just realised that your OH wont/can't do Tesco. But you could have 2 sole, giving you £6k at 3%.

Archi_Bald

Are you already maxing the Regular Savers? E.g. you could keep the 2nd 123 and drip-feed £500 a month a year into a Nationwide FlexClusive. The extra interest will easily cover the Santander charge and more, and you can use other 4%, 5% and 6% Regular Savers, for a total of £1,950 a month.

Of course you'd make even more if you didn't have to pay out £60 a year.

You could still switch an account to FD, e.g. a Santander Everyday account that you open specifically for that purpose.

YorkshireBoy

enthusiasticsaver wrote: »

I don't want to keep a lot in First Direct as they don't pay interest but I think I can avoid the £10 monthly fee if I pay in £1k a month. Is that correct?

The last time I checked their T&Cs the fee was avoidable in far easier ways than funding unnecessarily. You should read the current T&Cs to see if that's still the case.

I will therefore need to do some standing orders each month to comply with this, £1500 to Club Lloyds and £1k to Bank of Scotland.

I wouldn't be cycling loads of cash through FD. I'd cross-fund my high interest accounts. What do you want the FD account for?...apart from the £150 and a route to their 6% AER reg saver.

If I want to divide my £20k between Club Lloyds and Bank of Scotland which of these will let me open more than one bearing in mind the maximum is £5k so I need 4 ideally?

The last time I checked their respective T&Cs you could have 3 sole BoS Vantage and 1 sole Club Lloyds. You should read their respective T&Cs to see if that's still the case. If it is, there's your home for £20K right there.

Also can you open more than one Tesco current account?

The last time I checked their T&Cs you could have two sole accounts. You should check the T&Cs to see if that's still the case.

enthusiasticsaver

Archi_Bald wrote: »

Are you already maxing the Regular Savers? E.g. you could keep the 2nd 123 and drip-feed £500 a month a year into a Nationwide FlexClusive. The extra interest will easily cover the Santander charge and more, and you can use other 4%, 5% and 6% Regular Savers, for a total of £1,950 a month.

Of course you'd make even more if you didn't have to pay out £60 a year.

You could still switch an account to FD, e.g. a Santander Everyday account that you open specifically for that purpose.

I am maxing the Nationwide and Tsb regular saver and will do the Fd regular saver too if I can afford it. I think I will open the lloyds club 2 bank of Scotland and fill my existing tesco from 2nd santander