New credit card, current & savings accounts all at once?

ElHussler

Hi all, newbie here looking for some input if anyone can help.

TL;DR: Should I "switch" my credit card, switch and close one of my current accounts, and open my first savings account all at once? If not, when would you recommend?

I've a "good/excellent" credit score and would like to take advantage of some of the best-buys available at the moment, specifically:

1. 'Halifax Reward' current account - £125 bonus to switch from and close my atrocious Santander 123 account, plus the £5/mth reward (14th Dec deadline)
2. 'Barclaycard Rewards Visa' travel credit card - no fees on foreign purchases online/abroad, 0.25% cashback, extra cashback rewards program
   
3. Easy-Access savings account (Investec or Cynergy?) - decent interest to replace the 123 interest + unlimited withdrawals + manage online/in mobile app
   

On to my questions:

1. Is there a 'best order' and/or timeframe to do all this? From what I've read multiple applications once means multiple hard checks but I don't know what this combination of applications is likely to do to my score, or if it would scupper any of the applications in the first place.
2. How important is it to have an account open that you've had for more than 3 years? As infamous as it is I'm a little hesitant to close the Santander 123 as it's my longest standing account (next being just under 2 years) and apparently longevity goes in your favour for applications.
3. Is it worth keeping my current credit card once I get the new one if I don't intend to keep using it?
   

If there's no compelling reason to do otherwise I was planning to switch and close my Santander to the Halifax current account for the rewards in the next few days, and then maybe once that's complete apply for the credit card (leaving my current one open or closing it once complete). Then finally once that's completed and everything's transferred I'd open one of the easy-access savings accounts and move money into it.

Thanks in advance!

L

Zanderman

First of all stop worrying about the savings account - that has no relevance whatsoever to your credit records.

Open and close as many savings accounts as you like.

ElHussler

Ah okay thanks, I didn't know that. Yes, looking online it seems savings accounts applications use mostly soft checks.

With that in mind, is there anything in it between the credit card and current account? Bearing in mind the bank account bribe expires in 11 days: I was also considering applying for the credit card now while my credit history is unchanged, then starting the switch for the current account once the credit card application goes through (hopefully before the bribe expires) - does that make sense?

Finally, are these two back-to-back applications likely to affect my credit records in any meaningful way, considering the fact that I'm not planning to take out any loans in the forseeable future?

jimjames

Depending on the amount of your savings the Halifax reward account may pay more interest than a savings account.

Brie

Double check on the Barclaycard rewards as there's been some changes made to Barclays products recently.  Might not apply to the cards as well but better to be sure before signing up and then being disappointed.

ElHussler

jimjames said:

Depending on the amount of your savings the Halifax reward account may pay more interest than a savings account.

I don't follow. It doesn't mention interest on Halifax's web page for the Reward account or here on the MSE page, whereas it does for others like Nationwide. I assumed this meant that particular account paid no interest on your account balance, so the 0.7% from Investec was automatically better. Is this not the case?

HeinzVarieties

ElHussler said:

jimjames said:

Depending on the amount of your savings the Halifax reward account may pay more interest than a savings account.

I don't follow. It doesn't mention interest on Halifax's web page for the Reward account or here on the MSE page, whereas it does for others like Nationwide. I assumed this meant that particular account paid no interest on your account balance, so the 0.7% from Investec was automatically better. Is this not the case?

If you maintain a balance of £5000 you get the £5 reward a month which is equivalent (roughly speaking) to a 1.4% interest rate.

Of course, you can just do the £1500 in and out and spend £500 to get the bonus anyway then you can stuff the money in an interest-bearing account and earn even more so unless you can't do the £500 spend you're better off not keeping it in the Halifax.

ElHussler

Ah I see, yes I was planning on keeping £5000 in the account and moving £1500 in so would get the £5 a month reward then any extra is going into a savings account

Brie said:

Double check on the Barclaycard rewards as there's been some changes made to Barclays products recently.  Might not apply to the cards as well but better to be sure before signing up and then being disappointed.

Are you referring to the recent MSE article about Barclays changing the current account Blue Rewards scheme to make it less profitable for customers?