Time to Sort out the Savings

anotheruser

So I opened a Santander Everyday Saver as it allowed one Direct debit to be set up (satisfying Halifax).

However, it pays a pitiful 0.10% interest.

I've not really been bothered in the past as it's just a small savings account to help us in about 8 years time. However, if I can get an extra £50 a year (based on what I save and the rate paid by some banks), then I thought I might as well change the account.

I have a normal current account with HSBC, but I guess this doesn't give me access to the 5% saver?

I did have a First Direct account, perhaps a year or so ago, but I suppose this is going to be the easiest. Not really sure if I'll get the switching bonus (again!), but I'm not too worried about that as it's the savings I am interested in. Hassle to cycle £1k through it but I can tag that on to the end of Halifax's turn.

I also have a M&S account. Not sure if I get access to the 5% saver as it's only got £1 and is waiting ready for me to switch, potentially.
However, now I see Halifax is only £3 a month, I wonder if it's worth switching it (and the two DDs) to M&S and whether I'd get the giftcard offer. I guess I'll have to call and ask?

Is there anything else I have missed?

grumbler

anotheruser wrote: »

Not really sure if I'll get the switching bonus (again!),

Sure you won't.

but I'm not too worried about that as it's the savings I am interested in. Hassle to cycle £1k through it but I can tag that on to the end of Halifax's turn.

You don't need to cycle anything: First Direct

I also have a M&S account. Not sure if I get access to the 5% saver as it's only got £1 and is waiting ready for me to switch, potentially.
However, now I see Halifax is only £3 a month, I wonder if it's worth switching it

Well if you are prepared to change an account for extra £50 p.a., then IMO it makes no sense to sacrifice £36. Neither an account for switching, nor DDs is a problem.

Zanderman

anotheruser wrote: »

So I opened a Santander Everyday Saver as it allowed one Direct debit to be set up (satisfying Halifax).

However, it pays a pitiful 0.10% interest.?

If this account (the Santander Everyday Saver) is fed by DD from Halifax then keep it. And the Halifax. The Santander saver is helping you to earn £3 per month from the Halifax. It's an easy win. (and I don't think they offer DDs to that account anymore, so make the most of it).

But why leave your savings in there? If it has a pitiful interest rate just leave a token amount in there - keeping a modest DD going to satisfy halifax - and put your savings somewhere else.

There are some very easy wins - Tesco offer 3% on up to £3k in their current account - with no switching, monthly pay-ins or DDs needed. And they allow you to have 2 - so that's 6K at 3%.

Several other options out there - many not needing switches. And if they do need switches don't close the Halifax, just open a new current account at the halifax and switch that. Keep the Halifax's £36 a year.