Any Negative Reasons to Have an Un-used Open Bank Account?

base_2

Hi,

I was wondering if there was any issues to having an unattended bank account (not main account) which has no money in it (barely), and is never used?

This was my original account some years ago, and I haven't used it since.

Would there be a better use for it? Something which would benefit me?

The account was with Halifax if anyone is interested.

Thanks

[Deleted User]

Convert it to a reward account (the free one, not the ultimate reward), pay your salary into it, then on payday Faster Payment it out to your normal bank, and Halifax will put £5 in for free each month

(So long as your salary is over £1000 - if not you might have to move the money out, then back in again, then out again, so it looks like you've paid in £1000 in total )

Marauder999

If the account had an overdraft allowance on it then it can affect your credit score just like any unused credit cards can.
Also it will stop any fraudsters scamming your account of any money too as they can look through you rubbish bags for any statements etc and use this info fraudulently.

4$£&*(£$&*(!

I cannot think of any reason to keep an unused bank account open. As mentioned if it has an overdraft that can go against you if you apply for something that is credit related like a loan or credit card, since it may appear you have access already to unrequired (and possibly excessive) credit. A closed bank account by its nature is impossible to be used by fraudsters also.

Banks can introduce charges when they alter terms and conditions as well. I had a sharebroking service who did a dirty trick - they didn't have an annual fee but they snook it through the back door by sending me their entire T&C's through the post saying this is their latest copy, 10 page document and I didn't spot they introduced an annual fee in there until I saw a thread on this forum about people complaining, that nearly cost me.

If your bank introduces a fee it could happen without you noticing and since relatively few people in comparison have dormant bank accounts you could find yourself with an unexpected charge one day. Worse still if you forget about the account, you subsequently move address, your bank tries to contact you about such an imposed charge, you could then find yourself on the end of a tracing agent's list tracking you down to impose a CCJ! Yes this is all worst case scenario but all entirely possible.

billbennett wrote: »

Convert it to a reward account (the free one, not the ultimate reward), pay your salary into it, then on payday Faster Payment it out to your normal bank, and Halifax will put £5 in for free each month

Not a great idea. Someone else has already posted on this forum about having their account shut down by Halifax for doing a similar thing and it flagged up as fraudulent activity.

LongTermLurker

CitySlicker wrote: »

I cannot think of any reason to keep an unused bank account open.

There's actually quite a few - you qualify for existing customer offers/rates; you have a spare account should your main account suffer problems/you want to leave; you have an account that you can use to transfer to other banks for introductory offers...

As mentioned if it has an overdraft that can go against you if you apply for something that is credit related like a loan or credit card, since it may appear you have access already to unrequired (and possibly excessive) credit. A closed bank account by its nature is impossible to be used by fraudsters also.

Banks can introduce charges when they alter terms and conditions as well. I had a sharebroking service who did a dirty trick - they didn't have an annual fee but they snook it through the back door by sending me their entire T&C's through the post saying this is their latest copy, 10 page document and I didn't spot they introduced an annual fee in there until I saw a thread on this forum about people complaining, that nearly cost me.

If your bank introduces a fee it could happen without you noticing and since relatively few people in comparison have dormant bank accounts you could find yourself with an unexpected charge one day. Worse still if you forget about the account, you subsequently move address, your bank tries to contact you about such an imposed charge, you could then find yourself on the end of a tracing agent's list tracking you down to impose a CCJ! Yes this is all worst case scenario but all entirely possible.

All fair points and I wouldn't argue against them.

Not a great idea. Someone else has already posted on this forum about having their account shut down by Halifax for doing a similar thing and it flagged up as fraudulent activity.

That's different, she was transferring piddling little amounts between about 9 accounts! Halifax were seeing transactions going left right and centre. I've never had a problem transferring £1000 in, round 3 accounts and back out within seconds. Now you can only have one sole account, it's unlikely to ring alarm bells.

blueberrypie

CitySlicker wrote: »

Not a great idea. Someone else has already posted on this forum about having their account shut down by Halifax for doing a similar thing and it flagged up as fraudulent activity.

If you're thinking of the same poster I am, they were moving a small amount in and out of the account several times each month, which is why it was flagged. There are many people who are putting £1k into a Reward account (sometimes more than one) and moving it straight out again, without any problems whatsoever.

Loughton_Monkey

LongTermLurker wrote: »

There's actually quite a few - you qualify for existing customer offers/rates; you have a spare account should your main account suffer problems/you want to leave; you have an account that you can use to transfer to other banks for introductory offers...

I agree.

Personally, I tend not to close accounts. Recently, I had dormant ICICI, and ING accounts - both having served their purpose, and both containing less than a fiver.

ING, out of the blue, came and offered 2.75% again, just at a time when I wanted an 'good service' account at that sort of interest. And also, I found an ICICI fixed term bond that I knew wouldn't be on the market long. The fact that I already had the basic account meant that I could open the bond instantly, before it 'ran out'.

When bored, you can launder a few quid through every now and again to prevent the bank flagging them as 'dormant'.

Sharon87

I have 2 Halifax accounts I rarely use - Reward and Easycash. Well I have my mobile phone bill going from Reward account, but that's it. I did have it dormant whilst at uni though. I used it once for blockbuster dvd rental, when i cancelled it, they didnt actually cancel it so I got charged their excessive charges and didn't know about it for a few weeks, and then they charged me a 2nd time for same transaction (like they use to) and went over my limit again! Hence another charge.

So I shoved £50 in the account, checked it every day!

It's ok to have a dormant account if you check it at least, if not more than once a week.

Goldenyears

Having a lot of dormant accounts can be a nuisance if you move and forget to change one or more recorded addresses. Discrepancies will affect future credit scoring.