Ask Andy #8: Your questions answered

This week my answers to your questions on bank switching, savings and debit cards.

I love hearing from you, whether it’s on the blog, social media, YouTube or on email. Often you’re asking me questions about your finances, and I’m always glad to help if I have the time.

But I realised that my answers could also be useful to other followers. So I’ll be putting my responses to the best questions into regular articles here on the blog.

Keep reading for some of the questions I’ve been asked, plus the video live from last week with even more!

Watch last week’s Q&A

Watch my answers to questions including how the FSCS protects our money in banks, whether Chip is worth it, and which Amex I use.

How long do I need to keep an account open after switching?

Hi, I recently opened an HSBC account for their £125 switching bonus. Do I need to keep this account open for any length of time, or can I switch it to the Halifax one now? They can’t take the £125 back off me can they?! Thanks

Nat, via the blog

Hi Nat, if you’ve got the bonus then yes you can switch again. I did this last Autumn – switched to HSBC in September or October, and then used that account to switch to Metro in December!

Can I get interest from personal and joint bank accounts?

Can you still have Single & Joint A/Cs with Virgin & Nationwide current a/c s ? Couples could have 3 of each – 6 in total.

Peter, via the blog

Yep, that’s right! We had that with Nationwide when it offered 5% on £2,500! I’ve just called up Virgin Money to check and you can have a personal and join account with them – potentially more personal accounts too but I’m going to check this out further.

Can I pay into a LISA and ISA in the same year?

I’ve opened a stocks & shares ISA this year. Can I also open & pay into a LISA too?

Amit, via YouTube

Hi Amit,

Yes, absolutely but there are limits. The LISA has a £4,000 cap in a financial year, and this comes out of the £20,000 overall ISA allowance. So if you do put the full £4k in the LISA, you’ll have a maximum of £16,000 that can go into your other ISAs.

You can also pay in to just one LISA and one Stocks & Shares ISA.

Andy

Can I withdraw money from my regular saver?

Hey Andy what happens when I need to take money out of my HSBC regular saver. I didn’t realise that regular savers I have to wait a year for the interest to come in. If I close it down early does it mean I don’t get the 2.75% I currently have.

Hannah via YouTube

The rules can vary. Some will let you take the cash out and forfeit the interest, others won’t let you remove it at all. Some will let you stop paying in, others require you to keep paying something (though it can be as little as £25).

With HSBC if you do need the money you need to close it completely. You will get some interest but only the Flexible Saver Rate – currently 0.01%.

I’ve got an article explaining Regular Savers in more detail.

What’s the difference between a direct debit and standing order?

What’s the difference between standing order and direct debit also how do I set up direct debit or does it happen automatically

Zaim via YouTube

Hey Zaim. A standing order is a transfer you set up from your current account to another bank account. It’s for the same amount each time and can be to another of your own accounts, or one belonging to another person or business.

A direct debit is one you set up with a business for a regular payment, but the amount can change each time.

Does a direct debit use your debit card?

Can you pay off your Amex credit card by direct debit… this is in regards to the Halifax rewards account and having to spend £500 using the debit card… is it the same?

1987, via YouTube

A debit card is a different pay to pay and direct debit. What you need to do to get the £500 from Halifax while still using a direct debit to clear the rest of your Amex is set the Amex direct debit for later in the month.

This allows you time at the start of the month to use the Halifax debit card to clear £500. The direct debit will then take the rest you owe to clear the balance.

Why did you stop recommending Club Lloyds for savings?

What’s bad with 1.50% interest on £5k with Club Lloyds?

Ervin, via YouTube

Hi Ervin, it’s actually 0.6% on balances between £0 and £3,999, then 1.5% on anything between £4,000 and 5,000. If you have the full £5k saved you’ll get the equivalent of 0.78%

Ye, that is still decent. BUT since Chip+1 lifted how much you can earn interest on to £10,000 it works out as better (the equivalent of 0.86% on £5k and 1.06% on £10k after the monthly fee) and then there’s also Premium Bonds.

So if you’ve got money in both of those (and the Virgin Money M Plus too), most people aren’t also going to need the Club Lloyds account.

How to ask me questions

The best ways to get in touch is in the Andy Clever Cash Facebook community

Just post your question any time, or ask me live in my weekly Q&A each Thursday (which is also on Instagram and YouTube).

You can also comment on individual blogposts and videos or ask me questions via these channels:

• Twitter @AndyCleverCash
• Instagram @AndyCleverCash
• Email Andy[at]BeCleverWithYourCash.com

I can’t promise I’ll be able to answer all questions but I’ll do my best.