Old Savings Accounts

willrice

Hi,
I have a couple of old savings accounts I no longer use since the interest rates are very low (I've ditched and switched).
Is it best to shut these accounts down completely or leave them open with just a small amount in each so as to potentially benefit from being a customer of those banks or building societies in the future.

innovate

You are highly unlikely to gain any benefit ever from any account that has insignificant deposits. Even significant deposits probably mean nothing on a future merger / de-mutualisation etc.

Personally, I don't bother closing accounts when I empty them, though some banks do it as a matter of course - - e.g. if you request an ISA transfer of your entire sum, the old bank usually closes the account.

Might be tidier to get all empty accounts closed, so you can take advantage of any possible future incentive to open an account with the respective bank.

savetilibleed

willrice wrote: »

Hi,
I have a couple of old savings accounts I no longer use since the interest rates are very low (I've ditched and switched).
Is it best to shut these accounts down completely or leave them open with just a small amount in each so as to potentially benefit from being a customer of those banks or building societies in the future.

I think it's quite useful to keep account open with a low amount in, as it can make it quicker to open new accounts if they 'know you'. I guess there must be a limit to how useful it is though if you have had an open but unused account for some years. I've had a savings account with NatWest with £1 in it for about three years which I opened only to get access to an good ISA that was on offer at the time. However it took them so long to get the savings account opened, I had to find another home for my ISA money.

Vortigern

ING sometimes has special offers for new customers only. If your account is with ING, you should close it, then after 6 months you qualify as a new customer again.

archery

trying to close an ING account at the moment, what a nightmare
my linked account was closed about 3 years ago. to close account i need to add a new linked account send a cheque for £1.00 then phone up to close the account. never going to use them again.

innovate

only worth the bother if you still have money to withdraw.

savetilibleed

archery wrote: »

trying to close an ING account at the moment, what a nightmare
my linked account was closed about 3 years ago. to close account i need to add a new linked account send a cheque for £1.00 then phone up to close the account. never going to use them again.

I had trouble with them too. I was going to type it all but I can't be bothered! Just not going there, no matter how good the offers, not that I can for several months anyway.

MaxHeadroom_2

I've closed several ING accounts that have a zero balance over the years. I telephone them and ask for them to be closed. Never had a problem yet. As for keeping small amounts in an account paying low interest, I have £1.00 in a First Direct savings account. If I close it I will be charged a £10.00 monthly fee on my current account.

chris1

MaxHeadroom wrote: »

As for keeping small amounts in an account paying low interest, I have £1.00 in a First Direct savings account. If I close it I will be charged a £10.00 monthly fee on my current account.

Don't forget to move £1 in and out of it from time to time, otherwise they will take it upon themselves to close it - to 'prevent fraud on an unused account'...

willrice

Thanks for the feedback everyone.

MaxHeadroom_2

chris1 wrote: »

Don't forget to move £1 in and out of it from time to time, otherwise they will take it upon themselves to close it - to 'prevent fraud on an unused account'...

I can understand them doing that if it was the only account I had with them but not if I had another account also.

I think I will do it anyway, just to be safe. Thanks.