Changing bank accounts

masscrazy wrote: »

I've had my Halifax account since 2009. I'm getting £3 a month from the 'reward' account. I got 2 credit cards and loan with them too.

However, I'm thinking of switching to the TSB to get the £130 switching reward and then opening a separate Nationwide FlexPlus @ £10 a month for the breakdown/insurance etc.

Often in applications they ask how long you've had a current account (not sure why though) so since this is quite a common thing, switching, i assume there is no real negative affect of changing banks.

I'm wondering if im missing anything and to me this seems like a no-brainer.

Is Halifax your only current account?

Most on here would advise having at least 2, with different banking groups, to avoid having no access to your cash eg during system failures.

But it is also a good idea to have at least one long standing, well managed account as prospective lenders (mortgage, credit card etc) like to see stability.

So - my advice would be don't switch your Halifax Reward account - and give up £3 per month for almost no effort:cool: Instead, open another account, either with Halifax or elsewhere. Make sure it has any DDs etc required for your switch incentive, then use it to switch to TSB.

masscrazy wrote: »

Now thats a better idea.

I have an HSBC account which i opened in primary school which is now very old but not used at all. Rather keep that as well though.

So, best option to open another and switch. Does it need to have been opened for a minimum amount of time and have active DDs? Or can I just open it, setup the DDs and then switch straight away?

Why do you want to keep an old unused HSBC account?

To answer your questions - the account for switching does not have to be used for any specific length of time.

If the switch incentive specifies active DDs, then it would be sensible to wait at least until newly set up DDs appear online in the account to be switched. Belt & braces would be to wait until they had paid out, before initiating the switch.

Although your HSBC a/c proves you have had a long term relationship with a bank it is also one of the banks that has had a great switching deal in the last couple of years. Think I gained over £200.
One of the conditions has been that you must not have been a customer for x months -(Don't know what as I have never been with them.)

So, at the end of the day you might decide to switch that......

masscrazy wrote: »

So i've just opened another halifax current account, setup a DD to pay my credit card and will setup another DD in next few days in time for june payments. Then starting the switching process with TSB.

Make sure that the DDs are paid out every month- I'm thinking that is one of the new conditions. (My TSB a/c is older with different T&cs)