Question about closing my bank account

Legacy_user

I've had an account with HSBC for about 5 years almost, but a few months ago opened a Halifax account (also have an ISA and credit card with them so everything is in one place)

I still use my HSBC debit card atm, and the account is open because of one direct debit. The rest of my DDs have been transferred over to Halifax though, and my wages get paid into there as well.

Since they introduced that stupid security token, I don't intend to use the account ever again, and I haven't used their CC for months since I got the Halifax one.

The thing I'm wondering is, will closing this do any harm (is it good to have a bank you've been with for several years, does it have an affect on your credit rating or anything)? Also, should I open another bank account so I have 2 (one as backup) and another credit card too (with the same company)?

First Direct seem to be quite highly rated on here, and they offer £100 for transferring everything over and paying in £1500/mo for the first 3 months. Should I sign up for this, and give them the details of my HSBC account so they transfer everything over and then close it, and I'll also get the £100?

Or should I just keep the Halifax account + card?

Sorry for the long question, just curious.

Cheers

Lith

Why close it?

Just keep it open - but dont use it, (for now) you'll never know.. sometime in the future you will probs wished you never closed it,


any account i open (I DONT INTEND TO CLOSE IT) regardless even if i dont use it.... best to keep them open for future use.

agrinnall

Lith wrote: »

Why close it?

Just keep it open - but dont use it, (for now) you'll never know.. sometime in the future you will probs wished you never closed it,


any account i open (I DONT INTEND TO CLOSE IT) regardless even if i dont use it.... best to keep them open for future use.

In this case keeping the HSBC account is probably a good idea, especially if you still use it for the occasional transaction.

The suggestion to keep every account you've ever opened is nonsense, if the account isn't used it'll be made dormant and then you'll have to go through the hassle of getting the bank to find the account and get the money out of it at some time in the future. And although I've never had to do it I suspect they won't just reopen a dormant account, I imagine they will want you to go through the application process again.

Lith

True, keeping many accounts like that is a bit stupid,

but if you use it now and then, it will be wise to never close them.

and doesn't a bank put an account in 'dormant mode' in a number of years of none use?

coolesticeking

Don't HSBC require £500 a month going through otherwise they close it unless you have a fee-paying account with them?

Account eligibility

If you can pay £500 or more into your HSBC bank account each month, you're entitled to apply for Bank Account.
If you do not pay £500 or more into your account each month, we will contact you to discuss your needs. Your account may be transferred to our Current Account service or we may give you notice that we will close your account.

Lith

coolesticeking wrote: »

Don't HSBC require £500 a month going through otherwise they close it unless you have a fee-paying account with them?

Account eligibility

If you can pay £500 or more into your HSBC bank account each month, you're entitled to apply for Bank Account.
If you do not pay £500 or more into your account each month, we will contact you to discuss your needs. Your account may be transferred to our Current Account service or we may give you notice that we will close your account.

Nope,


it's a bg fat lie... that rule is bogus.

System

thanks for the replies

I don't really intend to use the account at all any more, so it probably would just go with nothing in/out forever, unless I leave a bit in as a backup (although if I ever needed to transfer money in/out of it while I was out or something I couldn't because of the stupid security token)

also, I haven't always paid more than £500 in so not sure what that's about (although I did open my account at 16, and then got upgraded to a normal account with a Visa Debit card when I turned 18 so that might be why)