Current Accounts/Regular Savers.

cjn_2

I'm new to this forum, can't believe I didn't find it sooner!

Anyhow, to kick off. At the moment my main current account is with HSBC (paying 0.1%), and I'm considering to switch over to the Alliance's 5% account and put all wages in through that account. The main drawback is that I can't then have the HSBC Regular Saver (8%). I've read the article on Regular's and Halifax's may be the better of the two, but they aren't an either/or. I'm keen on having BOTH the Halifax Regular Saver AND the HSBC, thereby increasing the maximum I can put in each month.

So, is there anything flaw with the plan to:

Have my salary go into my HSBC current. Immediately tranfer the maximum over to the HSBC Regular Saver (£250?) and Halifax Regular Saver (£250). Transfer the rest into an Alliance Current (paying 5%), and use that for everyday living (hole in the wall withdrawals etc), leaving nothing in the HSBC current for the rest of the month.

The alternative is to direct my salary to the Alliance current and then transfer the £250 over to the Halifax (as seems a popular choice), although I then have an extra £250pm sitting in a bog standard websaver or suchlike.

Chris

grumbler

Welcome!

The alternative is to direct my salary to the Alliance current and then transfer the £250 over to the Halifax (as seems a popular choice), although I then have an extra £250pm sitting in a bog standard websaver or suchlike.

You switch salary to A&L and lose HSBC Regular Saver. However, if you find somebody to recommend you and you open Premier Plus or Premier Current Account both of you get £50 incentive (otherwise you get £25 for opening a Premier/Premier Plus Current Account). If you keep money on some 5% saving account instead of feeding HSBC 8% Regular saver you lose about £1500*(8%-5%)*0.8=£36 p.a. (after 20% tax). You still can win £50-£36=£14 during first year.

Milarky

Have I missed something grumbler? You can open the A&L account and get the £50 just by funding it each month - so there's no need to close the HSBC account. The A&L account had a 5% guarantee until middle 2006, so presumably it still does. But this is limited to balances of £2,500 only [0.1% thereafter]. The Online Saver has been closed, has it not, making a 'combined' A&L savings pot [the Premier Plus/OLS] out of reach.

But you do also get a year's interest free overdraft with the Premier Plus [what's the limit, up to £2,500?] That is very attractive if you simply kept the HSBC account, transferred £1000 [of salary each month], but then just drew out to the limit again. This does not 'solve' the problem of where to put one's free money however. You could open an ING account I suppose? [Oh dear, too many options!!]

grumbler

Milarky wrote:

Have I missed something grumbler? You can open the A&L account and get the £50 just by funding it each month - so there's no need to close the HSBC account.

I think you are right and I was wrong. I had a (wrong!) feeling that recently they started demanding paying salary in. However, I cannot find anything like this now. I think it was Lloyds TSB, but not A&L ...

Walletwatch

cjn wrote:

I'm new to this forum, can't believe I didn't find it sooner!

Anyhow, to kick off. At the moment my main current account is with HSBC (paying 0.1%), and I'm considering to switch over to the Alliance's 5% account and put all wages in through that account. The main drawback is that I can't then have the HSBC Regular Saver (8%). I've read the article on Regular's and Halifax's may be the better of the two, but they aren't an either/or. I'm keen on having BOTH the Halifax Regular Saver AND the HSBC, thereby increasing the maximum I can put in each month.

So, is there anything flaw with the plan to:

Have my salary go into my HSBC current. Immediately tranfer the maximum over to the HSBC Regular Saver (£250?) and Halifax Regular Saver (£250). Transfer the rest into an Alliance Current (paying 5%), and use that for everyday living (hole in the wall withdrawals etc), leaving nothing in the HSBC current for the rest of the month.

The alternative is to direct my salary to the Alliance current and then transfer the £250 over to the Halifax (as seems a popular choice), although I then have an extra £250pm sitting in a bog standard websaver or suchlike.

Chris

Are you married, in which case, does your partner work? If yes, you can open an account for her in HSBC, and both of you can have a regular saver each in HSBC, as well as in Halifax. That is what I've done to avail of the £250 limit at 8%. My wife and I have Reg savers at HSBC and Halifax (£250 each per month) and at Abbey (£500 each per month), thus accounting for a total of £2000 per month at 5.6% plus interest net !!!

cjn_2

Thanks for the tips.

I'm not married so I can't double up on HSBC/Halifax, although I might have a look into the Lloyd's RS account as an additional outlet, especially if there is £2,500 free overdraft on the A+L Premier Plus. What are the terms on the Lloyd's RS?

I do already have a basic current account with the A+L, which I was told I needed to have in order to open the OLS. Hence I would be upgrading my current account to Premier Plus, rather than starting from scratch. Apparently I have to ring up to switch, in which case do I still get the £50 bonus?

grumbler

cjn wrote:

What are the terms on the Lloyd's RS?

What is Lloyds' RS? The only reason I mentioned Lloyds is that thay demand paying salary in to get £50 incentive for opening an account.

... in which case do I still get the £50 bonus?

Recommend a Friend and earn £50!:

'This offer does not apply to existing Alliance & Leicester current account customers opening a new account or upgrading their existing current account.'