Best Buy Bank Accounts that are for new customers - not switching

MissFitt

I see a lot of topics about the best switching deals, but i am looking to just open a new account to use for our household spending. I will be depositing £800 a month from a standing order from our joint account - any recommendations?

Overdraft is not important, I can set up a few direct debits to come out if it gives me access to better options - would obviously like whatever comes with the most cashback/benefits.


Thank you for helping on my first post

MissFitt

Or am I better to just opt for any account and then use that as a base to start switching ?

eskbanker

MissFitt wrote: »

Or am I better to just opt for any account and then use that as a base to start switching ?

Yes, this - as you've found, the one-off incentives are only for switching, so if you wish to take advantage of those then a sacrificial donor account is indeed a good route to take.

Having said that, there are other accounts offering in-credit interest that may be better for you, depending on what you're actually looking for - Nationwide FlexDirect pays 5% on up to £2,500 for up to a year for example.

Or there are accounts offering cashback on bills, which could be worth more to you, such as Natwest or Santander.

So, you need to evaluate whether it's better to have, say, £100 as a one-off, or 5% interest for a year, or £n in monthly cashback, based on your projected use of the account....

MissFitt

Yes that is exactly what I began to realise after posting - I think I will have to scarce this time, to then enjoy the benefits of switching.

As it stands we have a joint account that is chaos because so much is going in and out all of the time (husband is employed, I am self employed) and then I have my business bank account from which I pay myself a salary and then I was hoping to open this new account in my name, partly to build my credit rating as an individual (so much stuff just ends up going in my husbands name for ease, but leaves me with little credit history and partly so we can operate our monthly spending budget from our bills.

I am looking at TSB Classic Plus.. thats if I get it. I will pay in £800 a month and will just shift a few low direct debits across to qualify i.e. tv license and a couple of low mobile bills.

This will hopefully enable us to be clearer on budgets because right now over £5k coming in each month and over £5k going out and it has to change.

Appreciate any feedback - I got accepted for an MBNA credit card 8 weeks ago with £1000 limit, again just to build credit. That is being paid off slowly already, so I hope that I may be eligible?

xylophone

http://www.moneysavingexpert.com/banking/compare-best-bank-accounts

You should also look into monthly savers offered with certain bank current accounts.

xylophone

For a joint household account from which CT/energy/water/phone DDs are taken, Santander 123 might be worth a look.

YorkshireBoy

xylophone wrote: »

For a joint household account from which CT/energy/water/phone DDs are taken, Santander 123 might be worth a look.

The 'Lite' version of course, not the £5 per month version.

MissFitt

So I went for the TSB accountant as it gives £10 a month cash back and interest on any balance. Pleased to say it took 5 minutes max to apply online and I was immediately offered an account with a £600 overdraft (I do not need the overdraft but I was pleased to be offered it)

Thanks for the advice everyone - Any ideas how long i should leave it before switching?

colsten

Why would you switch an account that pays you £10 a month?

Katiehound

TSB Classic Plus is one of the a/c s that are worth keeping, not switching!
However what you could do, in a few month's time is to open a TSB Classic a/c use it (a bit) and then switch that. Prior to the switch you might need to 'groom' it with a regular feed and DDs- depending on the conditions of the switch.