Quick sense check please :)

Ballard

I don't recall exactly how I did it but it took virtually no investigation and took a few seconds. FD contacted the originator as they confirmed the change in writing a few days later. I switched the account within a week without any issues.

The only potential issue that I can see is that you'd have to ensure that the account was sufficiently funded to allow for all DDs to be claimed.

siross

YorkshireBoy wrote: »

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.

Thanks for the advice.

When you say open up an account with Club Lloyds, TSB & Nationwide do you mean maxing out the limit for the highest interest? So...

£5k in Lloyds (to get 4% gross)
£2k in TSB (to get 5% gross)
£2.5k in Nationwide (to get 3% gross)

If that's the case, I assume if your balance grows over the limit, e.g. if your Lloyds account has £5,100 you will still get 4% but only on the £5,000? If that's the case it's probably better to just leave the amounts at the set limits and move additional money to savers accounts?

I already have a couple of direct debits set up in my Santander account, energy and sky. So I might get someone to refer me over for the £100

siross

Just another quick question, if I were to split my Santander savings into 3 accounts, and open up 3 donor accounts for the M&S, Halifax and Nationwide switch offers that would leave me with 7 bank accounts open.

Does anyone know how adversely, if at all, this would affect my credit rating?

LXdaddy

siross wrote: »

... I assume if your balance grows over the limit, e.g. if your Lloyds account has £5,100 you will still get 4% but only on the £5,000? If that's the case it's probably better to just leave the amounts at the set limits and move additional money to savers accounts?

Yes you earn interest up to the maximum balance quoted in the T&C but you are permitted larger balances. And contrary to some people's concerns you are not penalised if you have a balance in excess of the maximum for earning interest.


Any balance over the maximum earning interest can be moved somewhere else to work earning more interest.


Most of the banks we are talking about have regular saver accounts paying the same interest as the current account - so you can start drip feeding into one of those (start with the highest interest rate obviously)

siross

LXdaddy wrote: »

Yes you earn interest up to the maximum balance quoted in the T&C but you are permitted larger balances. And contrary to some people's concerns you are not penalised if you have a balance in excess of the maximum for earning interest.


Any balance over the maximum earning interest can be moved somewhere else to work earning more interest.


Most of the banks we are talking about have regular saver accounts paying the same interest as the current account - so you can start drip feeding into one of those (start with the highest interest rate obviously)

Great, many thanks for your help. Having a couple of separate savings accounts will actually help me, I want to have a main savings account for our new house deposit and a separate slush fund where I'll put bits and bats that I save up for my more frivolous purchases.

Now I need to set up 3 donor accounts and transfer 2 direct debits to each.

I'm not entirely sure how to do this, can I amend Direct Debits in my existing First Direct account or do they have to be amended at the source. For example my mobile phone contract is with EE, do I need to log in to my EE account to change the direct debit to the new donor account?

YorkshireBoy

siross wrote: »

Thanks for the advice.

When you say open up an account with Club Lloyds, TSB & Nationwide do you mean maxing out the limit for the highest interest? So...

£5k in Lloyds (to get 4% gross)
£2k in TSB (to get 5% gross)
£2.5k in Nationwide (to get 3% gross)

If that's the case, I assume if your balance grows over the limit, e.g. if your Lloyds account has £5,100 you will still get 4% but only on the £5,000? If that's the case it's probably better to just leave the amounts at the set limits and move additional money to savers accounts?

I already have a couple of direct debits set up in my Santander account, energy and sky. So I might get someone to refer me over for the £100

Seems a very good fit for your circumstances, and the 3 regular savers will take £1,150 of your £1,250 proposed monthly savings going forward. You'd maybe open a Tesco 3% account up to take the other £100 plus all the interest. BTW, the Nationwide account pays 5% not 3%.

LXdaddy

siross wrote: »

... Now I need to set up 3 donor accounts and transfer 2 direct debits to each.

I'm not entirely sure how to do this, can I amend Direct Debits in my existing First Direct account or do they have to be amended at the source. For example my mobile phone contract is with EE, do I need to log in to my EE account to change the direct debit to the new donor account?

Direct Debits are instructions to "pull" money. Any changes need to be made at the "pulling" end.


Most people on here use a Tesco Internet Saver account and a Tesco Instant Access account. These are unique in allowing you to create multiple direct debits to pull from your other accounts.

siross

YorkshireBoy wrote: »

Seems a very good fit for your circumstances, and the 3 regular savers will take £1,150 of your £1,250 proposed monthly savings going forward. You'd maybe open a Tesco 3% account up to take the other £100 plus all the interest. BTW, the Nationwide account pays 5% not 3%.

Perfect, many thanks for your help.

Also, ignore my rather stupid question about amending Direct Debits, I've had a quick look at I need to contact the beneficiary. I need to double check whether I have enough Direct Debits!!

YorkshireBoy

siross wrote: »

Now I need to set up 3 donor accounts and transfer 2 direct debits to each.

Halifax doesn't need DDs for the incentive, so don't waste time on that. Simply set 2 up once the account is open if you want the ongoing Reward.

siross

LXdaddy wrote: »

Direct Debits are instructions to "pull" money. Any changes need to be made at the "pulling" end.


Most people on here use a Tesco Internet Saver account and a Tesco Instant Access account. These are unique in allowing you to create multiple direct debits to pull from your other accounts.

Thanks

So if I opened a Tesco Internet Saver and a Tesco Instant Access account could I set up 8 x direct debits to pull a nominal figure twice from 4 bank donor bank accounts, therefore having 2 direct debits set up ready to switch?

I could then start a standing order to send the nominal fee back to the Tesco accounts?