Nationwide 5% ended - Best next move?

YorkshireBoy

ST-User wrote: »

It needs them only for the switching offer.

DDs you mean? Am I the only one who can read on this thread?

radoslaff

YorkshireBoy wrote: »

DDs you mean? Am I the only one who can read on this thread?

Well, I already told them, but it looks like they know better or at least they think so.

ValiantSon

Just to add to the mix....

The First Direct regular save pays 5% on £300 p/m, whereas HSBC only pays it on £250. It is a small difference, but worth considering. First Direct will therefore pay £16.13 more in interest. Combine this with their current switching offer and First Direct works out at £141.13 in the first year.

Yes the HSBC switching bonus is higher, but there are no issue surrounding direct debits or standing orders. If the OP goes for the HSBC deal then they will need to set up two standing orders (no great difficulty as they have other accounts) before initiating the switch. I'd suggest having them pay out once at least before doing so. So for HSBC it is £280.64 with the regular saver after 12 months, or First Direct at £141.13. Looks like HSBC is the better deal if you are prepared to jump through a couple of hoops.

radoslaff

ValiantSon wrote: »

Just to add to the mix....

The First Direct regular save pays 5% on £300 p/m, whereas HSBC only pays it on £250. It is a small difference, but worth considering. First Direct will therefore pay £16.13 more in interest. Combine this with their current switching offer and First Direct works out at £141.13 in the first year.

Yes the HSBC switching bonus is higher, but there are no issue surrounding direct debits or standing orders. If the OP goes for the HSBC deal then they will need to set up two standing orders (no great difficulty as they have other accounts) before initiating the switch. I'd suggest having them pay out once at least before doing so. So for HSBC it is £280.64 with the regular saver after 12 months, or First Direct at £141.13. Looks like HSBC is the better deal if you are prepared to jump through a couple of hoops.

HSBC is a better deal and that's out of question but the difference is not that big anyway. If I can rely on your calculations about HSBC and the difference in interest the actual result after a year would be as follows:
HSBC - £280.64
First Direct - 221.77

[Deleted User]

radoslaff wrote: »

Well, the bonus in HSBC is £150 + £50 after a year and they have a regular saver too. That's a much better deal if you ask me. And the last time I checked they required 2 standing orders, which is not much more than nothing. The £1750 deposit per month requirement might be a little pain but easily maintained as long as you can rotate some money between accounts.

They wouldn't accept me. My pension is just over £20,500 after tax so I fall just short of the necessary income. I can easily make that up to the required amount but they turned me down. Any advice?

where_are_we

Thanks to everyone - New year`s resolution sorted - Take time to read through T&C`s! Standing orders are much easier to do than DD`s. I do remember posts about HSBC being picky about having sufficient income so thanks to Marvo5. My OH is a non tax payer so First Direct seems best.

soulsaver

Deleted_User wrote: »

They wouldn't accept me. My pension is just over £20,500 after tax so I fall just short of the necessary income. I can easily make that up to the required amount but they turned me down. Any advice?

£1750 pm is a credit requirement - not necessarily income.

Did you apply & were rejected? Or just think you don't qualify?

PS They don't ask for proof.

[Deleted User]

I applied and was rejected. I showed that I would have more than enough money coming in each month, they just said no, didn't give me a reason.