Can I open several regular saver accounts with different banks?

Elika0215

I've read the article on here about creating a regular savers account and transfer the money from say, Marcus' 1.35% (via a nominated account) to benefit from a higher interest rate per month, around 2.5%. If I were to apply to several different banks where interest exceeds 1.35% and pay the maximum in each, would the multiple applications impact my credit rating? Also, are there any other rules or potential pitfalls of doing this? I will still be below the £1000 interest tax-free amount. 

Wheres_My_Cashback

You can open as many Regular savers with as many different institutions as you like providing you meet any stipulations that are set. Some institutions allow multiple regular savers as long as they are different issues, then again some don't.
Why would opening savings account affect your credit rating ? Are you obtaining credit ? Answer NO, therefore NIL impact on your credit rating, though AML checks will be done to establish who you say you are. There are no pitfalls to speak of.

Elika0215

Wheres_My_Cashback said:

You can open as many Regular savers with as many different institutions as you like providing you meet any stipulations that are set. Some institutions allow multiple regular savers as long as they are different issues, then again some don't.
Why would opening savings account affect your credit rating ? Are you obtaining credit ? Answer NO, therefore NIL impact on your credit rating, though AML checks will be done to establish who you say you are. There are no pitfalls to speak of.

Ah! I've seen a flaw in my logic.. Although the rate is higher in a regular savings account, say 2.5%, you still get less interest after a year than if I locked the full amount up front in a savings account at say 1.6%. It must have seemed a strange question so I appreciate your response.

DairyQueen

The only downside is the requirement to open a current a/c for each regular saver that you wish to open with a bank. For example, you need a current a/c to access RS with HSBC, FirstDirect, Santander, etc. 

I have RS with HSBC & Santander (plus their current a/cs), Principality & Coventry building societies. I have just opened a current a/c with FirstDirect specifically to gain access to their RS. I also have a current a/c with Nationwide but they have canned their 5% RS so I no longer use it.

Financial institutions usually carry out an identity check which is recorded on your credit history but it shouldn't affect your credit rating.

Aretnap

Elika0215 said:

Ah! I've seen a flaw in my logic.. Although the rate is higher in a regular savings account, say 2.5%, you still get less interest after a year than if I locked the full amount up front in a savings account at say 1.6%. It must have seemed a strange question so I appreciate your response.

However shifting money gradually from a 1.35% instant access account to a 2.5% account will pay more interest over the course of a year than you would get leaving it at 1.6% all year - the effective annual rate would be just over1.9%

RichyRich

It's also worth noting that you may be credit checked for the mandatory associated current account that many regular savers have, and that such a current account may be reported on your credit report.