Want to be a tart, am I doing this right?

Sunshine_and_Roses

Katiehound wrote: »

Don't forget that the £1750 does not have to be one lump sum- say for example you have paid in £1K- you could withdraw £750 and then pay it back in. Total £1750. It also does not need to 'stay' ... but only visit!

Was thinking of transferring £1750 on 1st of the month (for example), use £250 for the 5% saver, and transfer £1500 back on say 5th of the month. Would that work?

YorkshireBoy

clareski wrote: »

Was thinking of transferring £1750 on 1st of the month (for example), use £250 for the 5% saver, and transfer £1500 back on say 5th of the month. Would that work?

48 days lost interest on the source account per year equates to a 13% cut in interest returned on said source account!


If you want to semi-automate, and in doing so maximise return, then SO into HSBC and manually transfer out.

Sunshine_and_Roses

YorkshireBoy wrote: »

48 days lost interest on the source account per year equates to a 13% cut in interest returned on said source account!


If you want to semi-automate, and in doing so maximise return, then SO into HSBC and manually transfer out.

Ooops, yes of course, you have already given me this great advice and I had forgotten already. Now written down so I dont forget. Thank you!!

ValiantSon

clareski wrote: »

Hope you don't mind me asking so many questions, I really appreciate all of your help.

I have looked at the DDs on my Santander 123 account, and it seems sensible for me to keep the ones that pay cashback in that account. That leaves me with 8 other to play with, mainly insurances and lottery donations. I was thinking of switching a couple of these to the second current account I have just set up with Santander, ready for the next switch.

I have my mortgage with HSBC, and under their T&C if you have an existing account with them you cannot apply for switching online, and will need to go into a branch or over the phone. This will be £150 incentive. I can pay in £1750 a month for 9 months and get an extra £50 for this. I already have internet banking for the mortgage so should not be too difficult for this.

This will tie me into M&S and HSBC accounts for up to a year, but for the linked accounts and extra bonuses this will be worth it.

The Nat West select account requires me to keep the account until at least 13th April, so now looking at some 'quick' accounts that I can take advantage of, before I look at this.

I'm always happy to help in any way that I can.

Putting a couple of DDs into the spare Santander account makes sense. I assume it is an Everyday account?

I'd switch to NatWest next (and quickly). You will have to keep the money there until 13th April at the latest (it may pay out sooner), but for £125 it's worth hanging around with them for two and a half months until the next switch. I'd then make the next switch to Halifax from there (assuming it is still running - no obvious sign of it being withdrawn yet). The pay out is made before your switch has even completed, so within two weeks (waiting for the debit card) you can then switch again to HSBC. Halifax require no DDs for the switch bonus (they do offer £3 p/m if you stay, pay in £750 p/m, and pay out two DDs, but personally I think the £150 + £50 from HSBC is more attractive, and you could always switch back to them later - albeit without a second switch incentive - for the £3 payments once your M&S rewards dry up). Also note that HSBC only require you to have two direct debits or SOs operating on the acount when you switch, you don't need to keep them active.

I'd also suggest looking at doing another switch right now to First Direct as they are paying £125 if you use the link on MSE. You said you had a second Barclays account, so use that one as Barclays are paying you nothing. First Direct won't pay any interest, but £125 isn't to be sniffed at. Furthermore, if you keep it (and I suggest you do) then you will have access to the best regular saver currently available at 5% on £300 p/m - and you can open a new one when that matures - so I'd think of the First Direct as a long term deal. NO DDs required with First Direct.

If you do all of this then fifteen months from now you will have earned £783.05 (assuming £300 p/m into First Direct regular saver, £250 p/m in the HSBC regular saver, and £250 p/m in the M&S regular saver - or £525 without), plus £185 in vouchers from M&S, so your total return for a little bit of work would be up to £968.05. Not bad, really, and there could well be other switching incentives materialise along the way.

Westie983

The money for the incentive for Natwest doesn't have to stay in the account till April, just that you need to make payments totally £1400 after the switch has completed by April. After all its a bank account not a savings and cant expect people not to have to need to use the money for bills.

Westie983

ValiantSon

Westie983 wrote: »

The money for the incentive for Natwest doesn't have to stay in the account till April, just that you need to make payments totally £1400 after the switch has completed by April. After all its a bank account not a savings and cant expect people not to have to need to use the money for bills.

Westie983

I think that was my poor choice of phrase. What I meant was, "You'll have to keep the account open until at the latest 13th April."

Sunshine_and_Roses

I am waiting for debit cards to come through now for the new Santander current accounts I have set up so that I can switch. I have arranged DD for credit card payments to come out of these, so they will be ready to go.

I have an old joint account with Santander which I have not used for a long time. I assume I can only transfer this to another joint account? I do not have any payments coming in or going out of it at the moment, was just going to transfer it to our 123 account but there seems to be an opportunity there. Any suggestions?