Maximising benefit of FirstDirect account

A_Leftie

I had an idea for how to maximise my savings, that goes something like this:

Step 1: Switch one of my accounts (not my main one) to the FirstDirect one (£150 in my pocket)
Step 2: Open a regular saver (6% interest, 12 months fixed term)
Step 3: A few days before rent is due, pay in £Rent + £300
Step 4: Pay the rent from this account
Step 5: Pay the £300 into the regular saver
Step 6: Repeat steps 3-5 until the regular saver term expires (pocketing £93 interest after tax)

The balance would stay at or just above zero the entire time, except for the buffer time between the transfer and the due date.
The >£1k transfer would take care of the monthly fees. All of my other savings can stay in the 123 account to maximise interest.
This would earn me £243 over the year.

Questions:
1. I'm not sure if the tax-free interest rules apply to this regular saver. If they don't, I'd get another £24 according to the figures on the FirstDirect website
2. Can you keep the account balance at zero for most of the time and still get these benefits?
3. I could earn even more by closing the account and getting the £100 offered, and splitting my savings between a Help To Buy ISA (my wife can also open one). Do you need a (good?) reason to close the account?

Vortigern

1. Tax-free rules are the same as for any savings account, but as the interest on the regular saver will be paid in one lump at the end of the 12 months, it will come under the new tax rules and will not have tax deducted by the bank.

2. Yes.

3. If you close the account, you lose the regular saver. Apparently they do ask for a reason for closure. I don't know if it has to be a good reason, or how they judge your reason.

You could open HTB ISAs and transfer the cash from the regular saver each year after the RS matures.

A_Leftie

Vortigern wrote: »

3. If you close the account, you lose the regular saver. Apparently they do ask for a reason for closure. I don't know if it has to be a good reason, or how they judge your reason.

You could open HTB ISAs and transfer the cash from the regular saver each year after the RS matures.

I meant planning to close the account instead of opening the fixed saver in the first place - then my savings could go to a HTB ISA sooner, so I'd get 4% APR * (£300/month for a year) = £72 from the savings, and £100 from closing the account = £172 vs £117 for the regular saver interest.

PrettyFlower90

I've just received my £100 from switching my account from first direct. Was with them <year. Nothing wrong, went with them initially for huge switching bonus and so switched to another bank for same reason. The reason I gave was that I didn't line the online banking look-did not find it user friendly compared to my other online banking and thought app was not that great. Hard to navigate and black and white was just not suiting me-these were all true but only did it for the switching bonus and £100 leaving one too. I did via secure message and they said I qualified for it. Was sent in the post but I did have to chase it up with phone call as it took a month and nothing.