First Direct Switch Dilemma

patch9495

Morning All,


With the news that the First Direct switching offer is coming to an end Monday I wanted to act fast.


I currently have a HSBC current account with a 5%regular saver attached to it which doesn't mature until August producing £81 interest. First direct is offering £125 now.


My concern is what happens to the £1750 I have in my HSBC regular saver account if I close my current account and open the new First direct account.


Does the balance automatically transfer over with the rest of the funds?


Thanks
Alex

[Deleted User]

No your savings accounts won't be touched as part of the switch process

Willing2Learn

Without checking the terms & conditions, my belief is that the Regular Saver will be closed automatically if you switch your qualifying HSBC current account. I think the funds in your Regular Saver will be automatically converted to a normal savings account with a lower interest rate.

BoGoF

But you will no longer qualify for the regular saver.....expect it to be downgraded

patch9495

Hi All,


thanks for the responses.


I am aware that I will no longer qualify for the regular saver and this will be downgraded.


My plan was to just open the 5%reg saver with First direct. My thinking behind this is that I get £125 in April plus the reg saver access opposed to £81 from my hSBC reg saver in August.


My concern is what will happen to the £1750 currently in my HSBC reg saver. Will it transfer over with the balance of the closed account or will the reg saver close and the balance be deposited to a low rate saver with HSBC and then I have to transfer the funds

BoGoF

You have already been told it won't transfer over. If you want it to, transfer from your regular saver to your current account prior to the switch.

BoGoF

Your situation shows why it pays to have multiple current accounts as then you can switch ones that regular savers are not attached to and retain all benefits. Your £125 switch bonus is now only really worth £44

patch9495

I cant transfer funds from the regular saver without closing the account, hence the question in the first place

BoGoF

You do realise the 'ends on Monday' refers to the increased £125 switch bonus from FD....it will revert to £100 so, to me, it makes no sense to forfeit the £85 to gain £25.

patch9495

Okay understood, my apologies I was under the impression that the £125 would revert to £0.


In that case yes no point for the sake of £15

18cc

Check the T&C to see if you lose all the interest accrued on the regular saver if it closes early.