First Direct vs. Yorkshire Bank current accounts

JoRowlingRocks

Hi all,

Apologies if this has already been discussed- had a quick look and couldn't see anything!

I'm looking to shift around my bank accounts to get better use of them and saw that both First Direct and Yorkshire Bank are offering £150 to switch current account. Yorkshire Bank pays interest of 2% AER on balances up to £3,000; First Direct offers cashback of 5% on £100 of contactless payments each month. If my maths is correct that works out to the same amount back- £60- for each account (before tax). I might not spend the full £100 each month but First Direct also offer £100 if you 'aren't satisfied' and leave them 6-12 months after opening the account. Does anyone have any experience with either of these & could recommend which one to go for?

YorkshireBoy

Are you sure FD do cashback on contactless?

JoRowlingRocks

YorkshireBoy wrote: »

Are you sure FD do cashback on contactless?

Apologies, getting my accounts mixed up! It was the TSB Plus I was thinking of. Which puts Yorkshire in the lead of which to go for I guess!

Although I've now discovered HSBC is in the mix as they offer £120 to switch which gets you access to their 6% saver, which would apparently earn £97 gross p/a. So that's a total of £217 with HSBC vs. £210 with Yorkshire (£150 to switch + £60 gross interest)... is that right??

Romburner

First Direct also do a 6% regular saver and you can put in more (£300) per month than the HSBC (£250) one if the regular savers are what you are interested in.

JoRowlingRocks

Romburner wrote: »

First Direct also do a 6% regular saver and you can put in more (£300) per month than the HSBC (£250) one if the regular savers are what you are interested in.

In that case First Direct is the clear winner! £216 gross interest p/a on the saver plus £150 to switch to the current and potentially £100 to leave.

I'm not looking at regular savers in particular, just at whatever gets me the most return

enthusiasticsaver

I have a First Direct current account and regular saver and just received my switching bonus of £150. Definitely worth opening but couldn't tell you about Yorkshire.

masonic

JoRowlingRocks wrote: »

£216 gross interest p/a on the saver

You might want to check your sums there.

If you have a lump sum to save, the best return will come from opening another account (e.g. Nationwide FlexDirect and/or TSB Plus) in addition to the above.

JoRowlingRocks

masonic wrote: »

You might want to check your sums there.

If you have a lump sum to save, the best return will come from opening another account (e.g. Nationwide FlexDirect and/or TSB Plus) in addition to the above.

Oops yes, just realised my mistake there! Forgive me, I've looked at too many numbers this evening :eek: It would actually be (roughly) half that, correct?? Which would still make them the best option.

And yes, planning to get a TSB Plus also

YorkshireBoy

JoRowlingRocks wrote: »

Oops yes, just realised my mistake there! Forgive me, I've looked at too many numbers this evening :eek: It would actually be (roughly) half that, correct?? Which would still make them the best option.

And yes, planning to get a TSB Plus also

You need to treat switching and interest activities separately (although some can be combined, eg the TSB Plus offer you've just missed and Nationwide FlexDirect via their RAF deal).

Just get your savings in the highest interest rate current account, and then (if your salary won't support it) use these funds to fulfil any switching criteria on the other accounts (pay in/remove immediately).

Romburner

Yes, you will get approximately £117 per year on the RS, mine just matured for last year (immediately opened another of course) giving £93.78 after 20% tax.

Robbieh

I've just switched one of my BOS accounts to FD, some cash has gone to a Tesco acc. To dripfeed the FD reg. Saver, so quite a good payout allround.