Length of account history

hohum

Hi

Need to do some finance housekeeping. We run a joint budget with each partner having personal account plus a joint Santander 123 account. Santander 123 account has all bills coming from it. With new account fees and reduction in interest, it's not really worry us using for interest rates. We have about £4K in Santander plus I keep TSB up to max £1.5k interest rates. Also have paid in full Santander credit card with £3k limit. We have had Santander for about 4 years, tsb is more recent with just 2 years.

I'm considering shifting our joint to a Tesco account. I don't like having too many accounts open and will def need to convert Santander account. But will I get dinged re length of account history, credit wise? What's best way to do this? Ideal outcome: move funds to higher interest bearing account, stop paying account fees, not have loads of accounts to track/ too many hoops with moving money.

YorkshireBoy

Downgrade Santander 123 to 'Lite'. £1/mth fee should mean there's a net gain.

Maybe use a pair of Nationwide FlexDirect accounts (either 1 each or 1 plus a joint) for 5% AER on the £4K that was in Santander? I know you said you didn't want lots of accounts, but 5% would see over 3x the previous Santander return.

xylophone

You could consider converting the Santander 123 to LITE if you earn enough on cash back to cover the small fee.

Assuming that you have three non cash back DDs, you could open a Tesco joint account and move those to it and deposit £3000.

You can fund by back and forth SO from another account.

You could open another TSB account and deposit the other £1000 - this can be internally monthly funded from the other TSB account using two way SO on the same day each month.