Quick sense check please :)

siross

Hi all,

I'd just like to ask a couple of questions regarding bank account switching. Make sure I'm not being thick (as usual).

I currently have a First Direct current account which I use as my main billing account. I would like to stay with FD as they are generally very good!

I also have a Santander 123 Current Account with my savings, currently standing at £7k and aim to put away £1250 a month.

I would like to take advantage of the current offers on the market, the only ones I'm able to go for are:

Halifax = £125 bonus and £5/month bonus
M&S = £100 Gift Card
Clydesdale Bank = £150 bonus.

Given the fact I would like to keep my FD account, it stands to reason that I need to open a donor account. Looking around, my best bet would be to go through Quidco and open a Nationwide Flex account and try to get £35 cashback.

Now, this is where I get a bit confused. Looking at the Halifax, I don't need to have any direct debits set up to claim the bonus but for Clydesdale bank I do, as do the majority of other banks. Therefore it makes sense to just set up a couple of direct debits on the Halifax account to make it easier.

Do these direct debits have to be formal in terms of mobile phone contracts, energy bills etc or can I set up a couple of cyclical direct debits to my other accounts?

e.g. £1500 from my FD account to Halifax then

1) £1250 Halifax to Santander
2) £250 back to FD?

Apologies if the above are stupid questions, just want to make sure I don't compromise my existing accounts.

Thanks,

Simon

LXdaddy

If you want the switching bonus from all three banks then you should probably create 3 donor accounts.


Certainly if you set one donor account and switched it to Halifax and then switched that to M&S you would not get the £5/month reward from Halifax as you wouldn't have an account there.


On the question do the DDs need to exist in the original bank to gain the switch incentive , you need to look at the T&C of the switch offer - look at what it says and also what it doesn't say.


In terms of the Halifax £5/month reward - that doesn't relate to the switching process at all. You simply have to deposit a certain amount each month and have 2 DDs that pay out each month. There is no specific restriction on the type of DD that you need for that.


The M&S offer is time limited (can't remember the cut off) and it also takes a loooooong time to get the account opened so if you want the further benefits from doing the switch (like a further £10/month on the gift card and access to the 6% regular saver you might need to get a hurry on.


In terms of meeting the funding requirements - you can't use Direct Debits to satisfy these. Because these accounts don't allow you to set up a Direct Debit to "pull" money from other accounts - they allow you to set up Standing Orders to "push" money to other accounts. The do allow DDs to be set up from else where to "pull" money out. So to satisfy Halifax's requirement for 2 DDs you need to set the DDs up elsewhere instructing them to pull money from you Halifax account. You do that be instructing your mobile phone supplier or local council etc OR if you have a couple of Tesco SAVINGS accounts you can set them up there.

siross

LXdaddy wrote: »

If you want the switching bonus from all three banks then you should probably create 3 donor accounts.

Is this only required should I want to take advantage simultaneously? For example, could I not open an account with Natwest, switch to Halifax, then switch to M&S and then switch to Clydesdale?


Certainly if you set one donor account and switched it to Halifax and then switched that to M&S you would not get the £5/month reward from Halifax as you wouldn't have an account there.

I'm not sure how bothered I am about the £5 a month. The only reason I'm apprehensive to open a lot of bank accounts is the potentially negative affect on my credit rating. From what I understand it has a negative impact as bank accounts come with overdrafts, therefore increased potential credit available to me

On the question do the DDs need to exist in the original bank to gain the switch incentive , you need to look at the T&C of the switch offer - look at what it says and also what it doesn't say.

Thanks, I'll have a look


In terms of the Halifax £5/month reward - that doesn't relate to the switching process at all. You simply have to deposit a certain amount each month and have 2 DDs that pay out each month. There is no specific restriction on the type of DD that you need for that.


The M&S offer is time limited (can't remember the cut off) and it also takes a loooooong time to get the account opened so if you want the further benefits from doing the switch (like a further £10/month on the gift card and access to the 6% regular saver you might need to get a hurry on.

Thanks for the advice, this is another vote for multiple donor accounts!

In terms of meeting the funding requirements - you can't use Direct Debits to satisfy these. Because these accounts don't allow you to set up a Direct Debit to "pull" money from other accounts - they allow you to set up Standing Orders to "push" money to other accounts. The do allow DDs to be set up from else where to "pull" money out. So to satisfy Halifax's requirement for 2 DDs you need to set the DDs up elsewhere instructing them to pull money from you Halifax account. You do that be instructing your mobile phone supplier or local council etc OR if you have a couple of Tesco SAVINGS accounts you can set them up there.

That makes sense, I will probably just use my phone contract, TV licence and Spotify Direct Debits

Thanks for the advice,

I've put a few notes in red above

badger09

OP you seem to be turning down £5 per month from Halifax:eek:.

It takes very little effort to incorporate this one into a 'monthly shuffle' between accounts:)

YorkshireBoy

In your shoes I'd swap Santander for Club Lloyds, TSB, & Nationwide and take all their regular savers. Half as much interest again (4.5%+ AER vs 3% AER) plus a saving of £60 a year on the Santander fee.

EDIT: I'll make you even more money!...put 2 DDs on Santander and get someone to refer you to Nationwide and make another £100. So that's £160 in your pocket over the next 12 months and 50%+ more interest...and that's on top of all the switches you're considering.

ceredigion

siross wrote: »

Hi all,

I'd just like to ask a couple of questions regarding bank account switching. Make sure I'm not being thick (as usual).

I currently have a First Direct current account which I use as my main billing account. I would like to stay with FD as they are generally very good!

I also have a Santander 123 Current Account with my savings, currently standing at £7k and aim to put away £1250 a month.

I would like to take advantage of the current offers on the market, the only ones I'm able to go for are:

Halifax = £125 bonus and £5/month bonus
M&S = £100 Gift Card
Clydesdale Bank = £150 bonus.

Given the fact I would like to keep my FD account, it stands to reason that I need to open a donor account. Looking around, my best bet would be to go through Quidco and open a Nationwide Flex account and try to get £35 cashback.

Now, this is where I get a bit confused. Looking at the Halifax, I don't need to have any direct debits set up to claim the bonus but for Clydesdale bank I do, as do the majority of other banks. Therefore it makes sense to just set up a couple of direct debits on the Halifax account to make it easier.

Do these direct debits have to be formal in terms of mobile phone contracts, energy bills etc or can I set up a couple of cyclical direct debits to my other accounts?

e.g. £1500 from my FD account to Halifax then

1) £1250 Halifax to Santander
2) £250 back to FD?

Apologies if the above are stupid questions, just want to make sure I don't compromise my existing accounts.

Thanks,

Simon

You need to read quidco's T&C's

Ballard

You can easily open a second 1st account at FD, move a couple of direct debits to it through the FD website and then switch that one elsewhere. They can be any DD but I have a couple of charity ones which fitted the bill perfectly.

ceredigion

Ballard wrote: »

You can easily open a second 1st account at FD, move a couple of direct debits to it through the FD website and then switch that one elsewhere. They can be any DD but I have a couple of charity ones which fitted the bill perfectly.

How do you do that, tell me more please

YorkshireBoy

ceredigion wrote: »

How do you do that, tell me more please

I've seen it reported before that HSBC have some kind of re-route internally for DDs, presumably so customers can create a secondary bills account without having to contact the DD originators? Not sure what would happen if you tried to switch away though. I suspect there could be problems.

ceredigion

YorkshireBoy wrote: »

I've seen it reported before that HSBC have some kind of re-route internally for DDs, presumably so customers can create a secondary bills account without having to contact the DD originators? Not sure what would happen if you tried to switch away though. I suspect there could be problems.

That is a new one on me, Will log in and have a look. Live and learn.

ceredigion

Well,Live and learn. You can indeed move DD's around your FD accounts. Not sure it is a good idea for the OP though.