Closing current account - or leave it open with a penny in?

stuart.pinfold

Hello,

I took advantage of the Alliance and Leicester deal at the start of the year. They didn't do the transfer of direct debits/standing orders/incoming employer pay properly, so that I started paying DDs and SOs before my pay had been transferred, which generated bank charges (a nice introduction to a new bank and new account, I'm sure you'll agree). When I called them, they said it was my responsibility to update my employer's records, despite there being a field on the form to enter your employer's Payroll details.

Then when I tried to claim on the 'included' insurance, I was told my claim was invalid as I was in Scotland and not outside the UK, therefore they wouldn't pay out - despite us doing everything possible to reduce our emergency transactions (hotel stay, another transport method and food during our delay) to our detriment.

The final straw came when a payment was refused as it took me just a penny over my overdraft, generating a £25 charge. I admit that it was my miscalculation which caused this, but I still feel they should have been more lenient over a penny.

So the time has come to go back to NatWest, whose account I have been using since I was a student and was kept open as an emergency for the past 11 months while I've been using A&L.

My question is - from a credit rating point of view, is it better to close the account entirely, or leave it open with a nominal sum (1p) in the account but never used? And will I still receive the (so far worthless) travel insurance, the renewal letter I have just had through the post containing my policy details for the next 12 months.

As Santander have now taken over, the old account details are no longer available (as the Santander products are called different names) so I cannot easily look this information up on their site (aren't there some rules about this?!)

Any advice appreciated.

rb10

If it was me I would just close it - I can't see any benefit to leaving it open.

However, I would personally also stay away from Natwest as their current accounts are rubbish - try Halifax or Lloyds TSB if you are in credit most of the time, or HSBC or First Direct if you go overdrawn a lot.

jen245

With old A&L accounts, you have to credit them with a minimum of £500 per month, so leaving it open with a penny is not a good idea, as you will start racking up their £5 underfunding charges.

nzseries1

Close it - if you can. Wait until a time until you are feeling patient. Because it's now with Santander, it will not be as easy as you think to close the account - trust me on this.

Wasteofspace

My advice, close the account.

I hear all the time of people clearing out accounts and then ignoring them, only to find out a year down the line a fiver came off for something they forgot all about and left them with months of fees to pay.

Not even worth the risk if you ask me, if you're not going to use it get rid of it. Especially with Santander!

YorkshireBoy

Wasteofspace wrote: »

I hear all the time of people clearing out accounts and then ignoring them, only to find out a year down the line a fiver came off for something they forgot all about and left them with months of fees to pay.

Closing the account might not stop them re-opening it to absorb a payment for something you "forgot all about".

The end result is the same...charges!

Wasteofspace

I'm not sure a bank would get away with charging fees on a monthly basis for an account you have in black and white as having been closed. How could a customer be expected to keep an eye on an account wich no longer exists?

Is that even possible?

jen245

With Santander, anything is possible!!

YorkshireBoy

Wasteofspace wrote: »

I'm not sure a bank would get away with charging fees on a monthly basis for an account you have in black and white as having been closed.

The alternative is to write off amounts as they are presented for payment. And they won't do that!

How could a customer be expected to keep an eye on an account wich no longer exists?

The customer would be expected to know if they'd written (guaranteed) cheques that had not yet been cashed, or had set up a CPA, eg card protection, RAC membership, car/home insurance, using their debit card.

Is that even possible?

It's reported on these boards quite frequently. Of course if you then move in the meantime then you could even end up with a default if they can't trace you.

stuart.pinfold

Thanks all, will close the account as soon as I can get into a branch!

jen245

You can close it over the phone using the A&L telephone banking number, thats how I closed mine