avoiding banking charge

1Foz

Hi there folks, some help needed if poss.

basically I am hoping in the next few weeks to change to HSBC's Advance account. Right now my main CA is with First Direct. I am not switching everything over tho to get the bonus because I'd like to keep my FD account so that I can keep using their 5% regular saver (and also use HSBC's too).

Right now, my FD just requires a monthly pay in of 1,000 which I can continue to maintain by switching back and forth if I wanted...trouble is, I am already doing the same thing with a TSB account that I have, and I'm not sure I want to continually have stuff moving from one place to the other.

Looking at the terms of my 1st Account, it seems that if I hold either a savings account (non regular saver tho) or a credit card (or some other acceptable financial product from them) then the banking charge is avoided. So, if I simply open their Bonus saver with £1 then will that mean I'll never pay this £10 banking charge? Is it really as simple as that? Cos of that is correct, then I will go ahead and do it just to save myself the rigmarole of moving money between these accounts. I can handle £500 moving between my TSB and 1st Account each month, but not sure I want to add a rostrum of current accounts where I need to move money around just to avoid paying charges.

If anyone can confirm if doing that with my 1st account would avoid the £10 monthly charge then that'd be great. One other thing - I had a notice from Nationwide that I won't be able to renew my 5% savings account with them at the end of the year as the scheme is closing. I have also recently just lost the 5% in credit interest they were paying on money in my Flex Direct...so I'm wondering what on earth to do with that now cos seems to me the Nationwide one won't be worth me keeping as the money I have there won't be "working" for me, so to speak.

Apart from HSBC and FD do any other banks pay a decent interest rate on savings, even if it means drip feeding? Thing is, I really want to avoid having to keep moving money about, I would already rather not have to do it with my FD one if I can void tbh! I guess that will be a problem tho cos most of these banks have some kind of small print!

Cheers for your time!

Willing2Learn

1Foz wrote: »

… Looking at the terms of my 1st Account, it seems that if I hold either a savings account (non regular saver tho) or a credit card (or some other acceptable financial product from them) then the banking charge is avoided. So, if I simply open their Bonus saver with £1 then will that mean I'll never pay this £10 banking charge? Is it really as simple as that?...

Yes, It really is that simple!!

1Foz wrote: »

… Apart from HSBC and FD do any other banks pay a decent interest rate on savings, even if it means drip feeding?...

I have a M&S Monthly Saver account as it pays 5% APR. You need to open their current account first as the saver is a linked account.


Just going back to the First Direct account. Why don't you open a donor current account first (with TSB for example) so that you can get the £100 switch incentive?

YorkshireBoy

Willing2Learn wrote: »

I have a M&S Monthly Saver account as it pays 5% APR. You need to open their current account first as the saver is a linked account.

Switch required? DDs required?

Just going back to the First Direct account. Why don't you open a donor current account first (with TSB for example) so that you can get the £100 switch incentive?

Isn't it £175 for the Advance account?

Willing2Learn

YorkshireBoy wrote: »

Switch required? DDs required?

I believe you're correct (I did not check the t&c's as I thought I'd leave that to the OP)

YorkshireBoy wrote: »

Isn't it £175 for the Advance account?

We're talking about the FD switch and not the HSBC one

YorkshireBoy

Willing2Learn wrote: »

We're talking about the FD switch and not the HSBC one

Getting paid to switch to FD as an existing customer? Have they relaxed the rules?

Willing2Learn

Just ignore me. I'm trying to multitask but have failed...dismally...and getting confused... Forgive me please OP...

1Foz

1st Direct is my existing CA. New one would be HSBC advance which I just got accepted for.

The only CA I can give up to get any bonus is my Nationwide one, which no longer pays 5% on the in-credit balance of £2,500 I had in there, though the regular saver I have with them is not ending for a few months yet so I can't use that as a switcher cos otherwise I'll lose the interest on it (I think). I suppose I could open an M&S one later in the year once I've no need for my Nationwide Flex Direct, and get a switch bonus that way.

The main thing for me is avoiding two things where possible, 1) banking charges, cos I definitely don't want to close my 1st Direct account and 2) Moving money around to make minimum pay-ins. If simply opening a savings account with 1st Direct will avoid the monthly banking charge (rather than transferring money each month to do so) then that's great. With the HSBC advance, my salary will be going in there along with £250 to fund the regular saver each month so there's no worries there. If I open this M&S one later on...I've no idea on the terms of that CA but its something I'd need to look at cos otherwise I've got a Nationwide account that's basically serving no purpose.

Seriously why do banks have to make it so damn hard to even earn not much more than a pittance of interest lol

cheers guys.

18cc

From September this year First Direct will be removing the £10 monthly charge anyway although you are correct at the moment to avoid the charge simply open a savings account (Regular Saver doesn't count) and put £10 in it