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MSE News: New 7-day bank switching era begins: Full Q&A
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Former_MSE_Helen
Posts: 2,382 Forumite
"A switching guarantee has launched today to ensure all incoming and outgoing payments get moved to your new account..."
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New 7-day bank switching era begins: Full Q&A
Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
New 7-day bank switching era begins: Full Q&A
Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
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Comments
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As usual, banks working together to make things worse for consumers instead of better. Instead of a process where you could easily continue to use the existing account, the new process closes the old account, making the switch an all or nothing proposition, so you get maximum consumer risk instead of minimum.
It's easy to switch current accounts without using this process. Just start to change your direct debits, credits and continuous payment authorities (not covered at all in the new system). You can continue to use your old account for as long as you like and all payments in either direction can continue to work forever, not just for the 13 months and most payment types that the new system covers.
Instead of making it fast and easy to compare, transfer payments or credits and stick or revert we have a new system that's designed to force a complete switch of bank, which is something that banks want but which doesn't help consumers, who are better off with at least a couple of accounts.
Get to work using new and more competitive accounts. Just remember you don't need to use the new system and close your old account. You can do it just fine by adding a new one and keeping or closing the new one depending on whether you find it's better or worse.
I have current accounts with three banks. So if one has problems with its systems I can use the others. And I get to compare the customer and other service levels and products of each, as well as using the best deals that each of them offers to their customers.
So when First Direct security majorly messed up (and subsequently apologised), I could use the other two.
When NatWest systems failed, I could use the other two.
And I get to see and compare how Santander does compared to them, both better and worse in some ways.
I get to see how poor the new First Direct security token system is, able to compare it live with the other two that are clearly better.
Multiple current accounts are good. Go for it. Just not with this system.0 -
The switching service isn't targeted at people who use this website. It's for the people that only have 1 bank account and any more complication is too much for them.
You're right though, the service should never close an account. What if it's a condition of keeping your credit card, what if it provides your travel insurance and it's revoked while you're away?
Anyway, give me bank account number portability (so I can take my main account number with me and there is no need to switch with providers or other people,1 change vs many makes sense) and one time bank account numbers for those times I don't want people to know my long time acct number. That said you should always be able to get a new acct number or attach a new one to an account you just moved your main acct number from.
Phone companies can do it....0 -
A bank can still switch your direct debits/credits WITHOUT closing the old account. It is referred to as a partial switch.
It does not however come with the 7 day switching guarantee.
The old account does not need to be closed.
You may not be entitled to any of the switching promotions that the new bank may be offering.
You would not be 100% certain where you credits are going to.
Under the new switching even if the account is closed credits sent to the old one are re-directed upto 13 months, giving the consumer less worry and plenty time to re-arrange credits that may fall outside the 13 month timescales.
You can do it yourself, yes it isn't that difficult, but if a bank is giving you £100/£150 or 5% interest to switch and begging you to do the monkey work for you then why not let them? Plus if things do go wrong you complain like mad to them and they throw more money at you for the inconvenience!0 -
I've recently done a switch via the "old" method and, whilst the DDs have appeared on my new account, they are still on my old account also. Is this normal? Do I have to cancel the old DDs manually?0
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When they give you something like £100 to switch your account, they don't want you to keep the old account open. They design the process so you have no choice.
I can open new current accounts by itself, but I won't get the £100.0 -
When they give you something like £100 to switch your account, they don't want you to keep the old account open. They design the process so you have no choice.
I can open new current accounts by itself, but I won't get the £100.
Or you can let them do it for you, get their incentive and then go back and open another current account yourself so you have your "other" bank account.
The bank wants you to close the old account as they want you to do all your banking with them.
Just let go.....close your old account, the bank give you nothing for staying loyal.
If you switch credit cards frequently you are better to cancel the old one, mainly because you can go back to them after 12mths and get another offer. Principle is the same.0 -
Depends on whether the DD holders sent cancel instructions when setting up the DD to the new account. If not, they will go away after a time limit expires or you can cancel them.I've recently done a switch via the "old" method and, whilst the DDs have appeared on my new account, they are still on my old account also. Is this normal? Do I have to cancel the old DDs manually?0 -
Both DD companies show the new bank details so I assume they've done everything correctly and won't take two payments by mistake. The old account is meant to be closed anyway but I have no idea whether this'll actually happen or when!Depends on whether the DD holders sent cancel instructions when setting up the DD to the new account. If not, they will go away after a time limit expires or you can cancel them.0 -
I only have one current account with HSBC and am tempted to switch. I see that First Direct offer £125, subject to certain conditions, if I switch. Are there any other deals people recommend - any other cashback incentives, for instance? Maybe it's worth waiting a bit to see if another bank can offer more money... ?0
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The only other comparable switching offer, AFAIK, is Halifax at £100 but if you get the Reward Current Account (free) and satisfy the criteria you can get £5 monthly.
A couple of years ago, the Co-Op offered £200 for switching. Can't see that happening again any time soon.
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