Benefits of keeping old bank accounts open?

david555_2

Afternoon guys. Last year I moved my money into Nationwide along with my mortgage and so far so good but I have a question on what to do with the older accounts I have accumulated over the years.

Natwest, where I have a current account that I've had for the best part of 25 years and an ISA that I've had for 15, are both are currently sitting at £5. I've another current account with Cahoot which I've had for around 8 years and this is equally barren. Both have no regular transactions or DDs.

Neither of these will ever be used in any anger again but is there any reason to cancel them or will having these maintained in their current lowly state benefit me in some way?

Cheers,


David

stclair

When making a credit application its better to state you have had your current account for 25 years rather than 2 for example.

tagq2

If the accounts appear on your credit reports, some lenders might regard them as evidence of continuing stability (one year vs decades). But an ISA won't show as it isn't a credit product and current accounts opened pre-1999-ish might not appear either.

I guess since current accounts cost the bank money to run they might run something every so often to trawl through inactive accounts and inform customers that they're going to close them. Do Natwest do this?

stclair

takeiteasy77 wrote: »

Does that hold much weight though ?

It does yes it improves the credit score when an application is being accessed by a lender.

exel1966

takeiteasy77 wrote: »

Does that hold much weight though ?

Yes as it shows stability to a potential lender so will definitely help in any future applications.

dawyldthing

i've kept all accounts open as you never know when you might need them, and once its open it saves the rigmarol of having to take all id with you and the like

tagq2

So many standard current accounts seem to have payment of some regular income in the T&C. Keeping open a basic account seems safe but I wonder whether one of them with little activity would count against you if you later wanted to open a standard account so you could switch main current accounts.

For example, a while ago I thought I'd get a co-operative account. "I'll get a Smile account as a spare" but that wants you to pay in regularly. "OK, I'll look at the main Co-op accounts" but they all have that rule except the Cashminder. But if I open a Cashminder and just sit a few quid in it I'm giving the bank a history of un-profitability.

We can all play the money circling game to make it look like the account is active... but if I was writing any misbehaviour detection software (AML seems to pick up some very innocent behaviours!) it would certainly look for that.

Bah. It was simpler a decade ago. "I'd like an account please" and as long as you kept to any repayment obligations everyone was happy.

MoneySaverLog

tagq2 wrote: »

I guess since current accounts cost the bank money to run they might run something every so often to trawl through inactive accounts and inform customers that they're going to close them. Do Natwest do this?

I guess the trick would be to float a pound through all the current accounts, so that they remain active. They all then get reported to the CRA so that looks even better in terms that the bank accounts are run well and not dormant :T

Hank_Marvin

How long do Halifax keep open the account if you haven't used it for ages. Cannot remember when i last used it but it must be around 2.5 years now.. btw it's only a basic cashcard account and nothing fancy..

tagq2

I know it's different, but I had a Woolwich for Kids' saver account untouched for about 15 years with under £10 in it. I got statements every 3-6 months. When I finally changed it to an Essential Saver a few months ago, the teller noted that she and many others still had old Woolwich accounts.

I only did this for the card so I have another place to make emergency withdrawal if my main bank suddenly hates me and/or I get mugged (card's not in wallet). It is sad to hear of people who say "my bank has locked my account!" and suddenlry they have no access to cash - we take ATMs for granted. I know Natw est have that emergency cash thing too, so if I am next to a payphone which gives free access to 0870 numbers I'll be sorted. Nah, my mobile is so old any thief with sense would consider WEEE regs and let me keep it .

pqrdef

A cahoot account will disqualify you from any "new customer" offers at Santander, though it won't count for any "existing customer" offers.