Saving using multiple current accounts

A question about : Saving using multiple current accounts

Hallo all

I hope this is not too stupid a question - I have tried to find the answer on existing threads but can't find what I'm looking for.

I have seen Martin talking about putting savings in current accounts which have better interest than many savings accounts. My question is - are you really allowed to have more than one current account? Is it then open to you to choose which you use as your 'real' current account and which you just want to use for saving (as long as you comply with any rules like paying in a certain amount monthly etc.)

I changed my current account to Santander, and that's fine for me, but I am actually now thinking of whether my brother might benefit from this multiple current account thing (he has more savings than me.)

Thank you in advance for any tips.

Best answers:

• You are allowed to have as many as you can get accepted for. There are certain current accounts that even allowed to have multiple of.
  As long as you meet the terms and conditions of each account; then there won't be a problem many people including me use multiple current accounts for higher interest on savings.
  My current list
  First Direct - Bills, Salary, Access to Regular Saver
  Halifax Reward - Monthly Ј5 'interest'
  2 x TSB Classic Plus - 5% interest on Ј2k in each
  Nationwide Flexdirect - 5% interest on 2.5k
  Future accounts
  Lloyd's Club Account - 4% interest on 5k
  BOS Vantage - Allowed 3, 3% interest on 5k
  As long as you meet the required DD's, and income for each account then it really is the best way to save at the moment.
  I use SO to automate the income requirements for TSB's and Nationwide accounts; effectively sending Ј1k in a cycle through the accounts.
  I hope this helps; there are others on here how will be able to list even more accounts if needed.
  P.s. I believe TSB have changed the conditions of the Classic Plus account so you are only allowed 1 single rather than 2.
• No such thing as a silly question, as they say presumption is the mother of all !!!! ups.
  The term "main" current account the bank use is ambigous at best. All you need to do is look at the terms of each institution e.g. minimum monthly credit, DD's etc.
  The only concern would be to open several prior to a mortgage application as each would show as a credit check and may make you appear credit hungry.
• As mentioned, you can have as many current accounts as you wish. However, its best to plan it out depending on how much you have to save. Santander will give 3% on balances over Ј3k to Ј20k (on the whole balance)
  Nationwide will give 5% on Ј2,500 but only for one year.
  Most need you to have two direct debits setup, some such as NW does not.
  You also need to pay in a minimum amount each month, which can be as much as Ј1,500, which can be done easily be standing order moving from one account to the next.
  So I would say look at the best options in terms of how much you have to play with.
• So, (and i'm thinking of me now) you could have Santander as your 'main' account, open a Nationwide Flexdirect account and pay Ј2.5 grand into that to make the most of the 5% interest.
  To meet the Flexdirect demands you set up a standing order from the Santander account to pay Ј1000 into the Flexdirect on, say, the 1st of the month and then, because anything over Ј2.5 grand earns no interest in the Flexdirect, set up a standing order to pay that Ј1000 straight back into the Santander account on the 2nd of the month?
  That Ј1000 then just travels back and forth by standing order every month.
  is this right?
• yes - or if you have time on your hands you can do it all by faster payments within a few minutes - in and straight back out again.
  Many of us do the Ј1000 shuffle each month ...... I'm curently shuffling through 19 current accounts - a few less than I was - some Nationwide a/cs have reached the end of their introductory period.....
• Hi, can anyone see a hole in this cunning plan???
  Currently, my wife and I have a First Direct Joint account as our only current account.
  1. Set up two sole FD accounts in our names with Ј50 of funds and in each put two dd's (they would be our charity dd's such as wateraid Ј5).
  2. Use Quidco (Ј40 cash back) to switch each sole account to Halifax (Ј100 switching reward) thus earning Ј140 for each account.
  3. Fund the Halifax accounts by Ј750 + whatever the charity dd's are Standing Order from FD, then bounce the money back again, earning Ј60 py on each account.
  Total earned yr 1 Ј400, yr 2 onwards Ј120
• Thanks for the reply, I can see the point of having the tesco accounts just for the purpose of bouncing the DD's back and forth as it keeps everything contained but I would have to cycle through Ј750 to avoid the Ј5 charge.
  Currently I have:
  Cycle Ј500+
  First Direct > TSB Wife > FD
  Intermediate Plan - slight change of plan from above:
  Cycle Ј1000
  FD > Nationwide Me > TSB Wife > FD (because you get Ј50 Quidco signup for NW)
  Longer Term:
  FD > NW Me > TSB Wife > NW Wife > Halifax Wife > TSB Me > Hal Me > FD
  Ј9000 saved + Ј435 py in interest (Thats 4.8%!) + Ј300 Signing up and Quidco fees.
  Like the idea of an extra Ј60 for a joint Halifax account, and I could make another Ј80 from Quidco if I open and transfer tesco accounts to the halifax.
  All good fun, and actually worth it when you look at the figures. Wouldn't want to kill my credit rating though by opening too many accounts!
• ps also, when Martin says this:
  "New customers to no.1 customer service bank First Direct* get Ј125 to switch to it (till Fri, after it's Ј100)"
  by switching, does he mean your main account would have to be First Direct so I'd have to change from Santander, or can you just set up FD as another current account?
• Pocketstrings - to get the Ј125 you have to have an account to switch and close (not actually mentioned on website but 'switching' does imply this) - Unless you want to transfer everything from your Santander account you will need to consider opening another current account with *someone* and using this dummy account to switch.
  I am currently going though the process myself - My current account is a joint one with First Direct. I don't want to close this as it is very good. Last week I set up a sole FD account in my name with Ј50 in it. Tomorrow I am going to switch a couple of minor DD's into it. Once that is complete, I will use Quidco (Ј40 switch) to switch this to Halifax (Another Ј100 switch, plus Ј5pm = Ј200). To maintain it I will need to bounce Ј750 in and out pm.
  Halifax's terms are: Use the 'Current Account Switch Service' to transfer all the active credits and debits from the bank account that you hold with another bank and close this account.
• Sorry, I'm not sure why exactly, but I'm getting really confused about all this different time of the month SO stuff. I'm confused about when in the month to have the SO take the money from my Santander to do the payment to FD to meet their Ј1000 a month rule. It's like I have some kind of mental block or something - maybe I just think I'm missing something I'm not?
  Also, don't have you have to do your SOs on different days so you make sure you have enough money? So...
  The Ј1000 goes from Santander to FD on day x
  The Ј1000 goes from FD to Santander on day x+1
  ???
• If your current account uses calendar months (as FD do), just make the SO sometime around the middle of the calendar month.
  If your current account uses statement months (as the Santander accounts do), just make your SO sometime around the middle of the statement month.
  It should be easily possible to figure out a date that suits both accounts.
  If both accounts have a balance of at least the SO, you can set up the SOs for exactly the same day.
  If the balance on one account is lower than the SO and must receive the incoming SO before the outgoing SO can be made, you should either leave 3-5 days between your SOs, or make the payment manually.