Switching and multiple accounts

ScottishSaverLass

Hi there,

I am looking to open a Santander 123 account and move all my Direct Debits from TSB. Simple enough. However i want to keep my TSB account so that i can capitalize on their 5% cashback and 5% interest on £2,000.

Do i use the switching service with Santander, move everything across (thus closing my TSB account) and then open another TSB account (if i can even do that)? Or do i use the old way of switching which give me no security (and i think means that i have to switch all DD's ect. manually) but will keep both accounts active...

Thanks for any advice! :T

eskbanker

What's the appeal of the Santander 123? Yes, you can earn cashback on some DDs but would have to clear £60 cashback just to cover the monthly fees without diluting the 3% interest - how many of your DDs would qualify, i.e. is that subset reasonably easy to shift manually?

You might find other current accounts better for your money - TSB is the best in terms of headline interest rate (along with Nationwide) so best not to switch away from it, but you may be better to open accounts with Lloyds, Bank of Scotland, Tesco, rather than Santander, see https://forums.moneysavingexpert.com/discussion/5374614 for details....

Super_Whiskey

Depending upon the bank, they can switch your direct debits etc across and keep the old account open. Like eskbanker said, you'd have to cover the £5/month fee. If it's just cashback on d/ds you want, Natwest might be better and has a smaller fee.

ceredigion

Login and open a classic account. Then switch your classic plus account to who ever. That will move all your DDs and SO. Then upgrade your classic to a classic plus.

jimjames

Super_Whiskey wrote: »

Depending upon the bank, they can switch your direct debits etc across and keep the old account open. Like eskbanker said, you'd have to cover the £5/month fee. If it's just cashback on d/ds you want, Natwest might be better and has a smaller fee.

If you do that then it won't be via the CASS system and you won't qualify for any joining incentive.

As per eskbanker above I'd question why you want a 123 account? I've not found a need for one as yet.

ScottishSaverLass

Hi guys, thanks for all the advice so far! The appeal of the 123 account for me is that i have a large chunk of money that I will be slowly putting into a Help To Buy ISA. Because you can only put in £200 per month into the ISA, I want an account with a high interest rate for such a large sum - hence the 123. I know that with the amount of money that will be in the 123 account (around £20,000) the 3% interest is far better even with the fee.

colsten

The money would earn even more interest in current accounts that do not charge a fee. If you add Regular Savers to the equation, you can earn yet more. Not to talk about the extra money you could make from a few switches....