Switch bonus and tax free allowance

mcfly998

Can anyone tell me if the current account switching bonus that some banks give (First Direct for instance), counts toward your £1000 tax free interest allowance.


Cheers

xylophone

No, because it is not interest or other income but an incentive.

mcfly998

Thanks, that's what I wanted to hear.


Cheers :-)

mcfly998

Ok, so if current account switching bonuses don't count toward your £1000 tax free interest allowance, this is what I'm thinking of doing next month when I stop getting 5% on my Nationwide flexdirect account. (This is not my primary current account and I have 2 standing orders setup on it):



Close my Nationwide regular saver, and switch my Flexdirect account to RBS Reward (£150 bonus).
After 30 days (to get the bonus), switch the RBS Reward account to HSBC Advance (£175 bonus).
After 30 days (to get the bonus), switch the HSBC Advance to First Direct (£125 bonus).
"Ping Pong" £1000 per month into First Direct for 6 months then close it (£100 leaving bonus).


Total bonuses of £550 for very little effort. My Experian credit score is currently 992, am I likely to wreck it? Any other reason not to go for it?


Cheers