Opening a second current account

simonwoods33

I'm looking to open a second current account in order to transfer spending money to every month This is in the hope that I can steadily build up a buffer in my main account (where all my bills will be paid from).

I'm just wondering if there are any of the cashback deals available which do NOT require closing the other account? Also, are there any disadvantages to this approach?

Thanks.

brizzledfw

Thanks for posting. I have been wondering the same thing as my mortgage deal is linked to having a particular bank account.

I think M&S have a good deal. Check out the MSE main board and they will have the details I suspect

Cheers

EachPenny

simonwoods33 wrote: »

I'm just wondering if there are any of the cashback deals available which do NOT require closing the other account? Also, are there any disadvantages to this approach?

Depends what your timescales are, your credit history, and you ethical approach.

Some people would start by opening an account with a bank that offers no cashback benefit (and never has). Alternatively it could be a second account with the bank you already use.

After setting up whatever direct debits and standing orders you need, possibly running it for a couple of months to make sure it is all working, you then have an account ready and ripe to be switched to a different bank I'm not suggesting that this will suit everybody of course.

If you search the forum for 'donor account' you will see plenty of advice.

Chapuys

As EachPenny suggests, it is good to set up a new initial account. Many of the bonuses come with new accounts you need to use the official Switching Service. Then switch your new account to start gaining the bonuses.

Pincher

I would start with Nationwide Flexdirect, which pays 5% on up to £2,500, but only for the first year. They have an introduce a friend deal, like a cashback, so ideally you want to get an existing account holder to get you started.

[Deleted User]

Second current account????

Jeez mate, most of the regulars on here have got 20+ accounts. :rotfl::rotfl::rotfl:

EachPenny

Pincher wrote: »

I would start with Nationwide Flexdirect, which pays 5% on up to £2,500, but only for the first year. They have an introduce a friend deal, like a cashback, so ideally you want to get an existing account holder to get you started.

Don't you still have to do a switch though to qualify for the recommend a friend bonus?

takman

brizzledfw wrote: »

Thanks for posting. I have been wondering the same thing as my mortgage deal is linked to having a particular bank account.

I think M&S have a good deal. Check out the MSE main board and they will have the details I suspect

Cheers

EachPenny wrote: »

Don't you still have to do a switch though to qualify for the recommend a friend bonus?

All you have to do is open another current account and then switch that to get the bonus. This means that you don't have to close any accounts you currently have.

Pincher

EachPenny wrote: »

Don't you still have to do a switch though to qualify for the recommend a friend bonus?

Oops, always forgetting the details.

Pincher

Deleted_User wrote: »

Second current account????

Jeez mate, most of the regulars on here have got 20+ accounts. :rotfl::rotfl::rotfl:

With the same £1,000 shuttling between accounts, we are bound to be called in for questioning on suspicion of money laundering. :eek:

My defence line is, I just go round flashing the same money in all the bars, to impress the girls, but I never spend any.:D

binaryuniverse

Pincher wrote: »

I would start with Nationwide Flexdirect, which pays 5% on up to £2,500, but only for the first year. They have an introduce a friend deal, like a cashback, so ideally you want to get an existing account holder to get you started.

That's good, if you have £2500 ready to put straight in to it. Otherwise it's a bit of a waste of a good deal.

I opened an account in February. Moved over 4 of my direct debits to it, then did the Co-Op switch, a month later. Last week, I got my bonus. Going to keep the account now for the £4 reward.

Similar with Nationwide. Opened another account, moved 2 of my direct debits to that, then got a family member to refer me. £200 for each of us, when it goes in (switch was only completed today).

I've gone from having one current account, at the start of the year, to 5.

I say just open a second account, then do the switch. Get the bonus AND still keep your old account intact.