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Transferring to a new bank

cebs
cebs Posts: 29 Forumite
edited 12 June 2013 at 3:07PM in Budgeting & bank accounts
I'm an EU student with a Classic Current Account with Lloyds TSB.
For those who don't know, the EU commission ordered Lloyds TSB to sell some of their branches to keep fair competition between banks; my branch happens to be one of those to be sold.
As far as I know, no one is buying these branches yet, so by August/September this year these branches will become a seperate bank known as TSB. Because of all this, I was thinking about changing bank.

First of all, do you think it's a good idea?
As an EU citizen, I'm not allowed to open a "student account" because I have to have lived in the UK for at least 3 years (I've been here almost 2 years now).
Do I first open a new bank account, transfer the money and then close the old one? Or does the new bank do all the transferring and closing the old account? I have no standing orders, fees or bills to worry about.

These are my needs for the bank account:
- No fees.
- Debit card.
- Internet banking (Clean and simple site, like Lloyds' one).
- No minimum income or amount to keep in the account, remember I'm a poor student. :D

Optional:
- Overdrafts, possibly interest-free (probably only reserved to student accounts though).
- Low cost when transferring money from European countries (my parents send me money from Italy sometimes). My understanding is that besides money lost in the exchange rate, there is also a fee from the bank?

Thanks for any suggestions. :)
«1

Comments

  • opinions4u
    opinions4u Posts: 19,411 Forumite
    In what way are you disadvantaged by staying with the same account you have now?
  • cebs
    cebs Posts: 29 Forumite
    edited 12 June 2013 at 6:06PM
    opinions4u wrote: »
    In what way are you disadvantaged by staying with the same account you have now?
    Currently none, I'm not sure what will change once the move is completed.
    The reason why I'm considering a new bank is that I just don't like the sound of all this moving/selling thing going on, so that's why I thought of just moving away from Lloyds.
  • innovate
    innovate Posts: 16,217 Forumite
    10,000 Posts Combo Breaker
    cebs wrote: »
    I just don't like the sound of all this moving/selling thing going on

    What are your concerns?
  • cebs
    cebs Posts: 29 Forumite
    innovate wrote: »
    What are your concerns?
    Well right now I think we are going to get new debit cards and the terms should stay the same.
    Later when somebody buys TSB, what if the terms change? Then there might be the need for me to go to the branch, sign stuff, maybe go again, wait their response and so on. Also I move a lot and if they send me any kind of letter for new terms/cards/etc. I might not receive them.
  • EarthBoy
    EarthBoy Posts: 3,374 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 12 June 2013 at 7:21PM
    cebs wrote: »
    Later when somebody buys TSB, what if the terms change?

    So what if they do? I don't see your point. All banks change their terms and conditions from time to time; all they have to do is give you notice. Lloyds have already issued all their customers, both those staying with Lloyds and those moving to TSB with notice of new terms and conditions after 14/8. If you change banks your terms will change again.
    cebs wrote: »
    Then there might be the need for me to go to the branch, sign stuff, maybe go again, wait their response and so on.

    You won't need to go to the branch and sign anything if you stay where you are and just let your account move to TSB, but you might well have to sign "stuff" if you decide to change to a new bank altogether.
    cebs wrote: »
    Also I move a lot and if they send me any kind of letter for new terms/cards/etc. I might not receive them.

    Now you are just being dramatic. Bank letters and cards shouldn't go missing if you keep the bank informed of your up to date address. When things do go missing it's no more or less likely to happen to one bank than to another.
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    cebs wrote: »
    Well right now I think we are going to get new debit cards and the terms should stay the same.
    Later when somebody buys TSB, what if the terms change? Then there might be the need for me to go to the branch, sign stuff, maybe go again, wait their response and so on. Also I move a lot and if they send me any kind of letter for new terms/cards/etc. I might not receive them.
    What will happrn now when they send out renewal cards to you?:(
  • JuicyJesus
    JuicyJesus Posts: 3,832 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    You don't want to stay with TSB in case their terms change at some undefined point in the future, but you do want to change banks to one that has an entirely different set of terms right now and go through the fuss of changing everything over on top of that.

    ...OK. Your call.

    Your needs are fairly generic*. Virtually every bank does an account like the one you've described. If you really want to move, pick one of the bigger ones at random and go from there.

    * I suppose at least it's better than the regular threads along the lines of "I'm getting a joint account and I have a baby, what's the best bank account for me and my partner and for my baby, it obviously isn't one of the ones on the article labeled 'Best Bank Accounts' on the front page of the main site, my personal circumstances (vis a vis having both a partner and a baby) are so unique and special that there must be a special bank account for people with both husbands and babies, maybe called a Bills and Spending For Two People Who F*ck And The Produce Of The Same Account".
    urs sinserly,
    ~~joosy jeezus~~
  • cebs
    cebs Posts: 29 Forumite
    edited 12 June 2013 at 8:14PM
    EarthBoy wrote: »
    So what if they do? I don't see your point. All banks change their terms and conditions from time to time; all they have to do is give you notice. Lloyds have already issued all their customers, both those staying with Lloyds and those moving to TSB with notice of new terms and conditions after 14/8. If you change banks your terms will change again.
    JuicyJesus wrote: »
    You don't want to stay with TSB in case their terms change at some undefined point in the future, but you do want to change banks to one that has an entirely different set of terms right now and go through the fuss of changing everything over on top of that.

    ...OK. Your call.
    By changes to the terms I meant something like the bank starting to charge me a monthly fee or other changes that actually affect me, not the T&C. My bad, sorry.
    EarthBoy wrote: »
    You won't need to go to the branch and sign anything if you stay where you are and just let your account move to TSB, but you might well have to sign "stuff" if you decide to change to a new bank altogether.
    OK, but the way I see it is that these branches have an uncertain future and honestly I don't want to be bothered following the updates to all this affair. It seems though that you guys say that it will all go smoothly and since I'm certainly not an expert, I guess you're right. That is why I opened this thread in the first place; notice me asking if going to a new bank is a good idea or not.
    EarthBoy wrote: »
    Now you are just being dramatic. Bank letters and cards shouldn't go missing if you keep the bank informed of your up to date address. When things do go missing it's no more or less likely to happen to one bank than to another.
    True, but I'm used to not receiving any letters from the bank (I've disabled my statements), I just get a receipt if money has been transfered into my account. That's why I'd rather not have to worry about letters. In other words I'm considering opening a new bank account for my convenience (despite opening one is quite a hassle).
    What will happrn now when they send out renewal cards to you?:(
    For now I will receive them no problem.
    JuicyJesus wrote: »
    Your needs are fairly generic*. Virtually every bank does an account like the one you've described. If you really want to move, pick one of the bigger ones at random and go from there.
    What about the optional things? Mainly the low transfer cost. As I mentioned I'm not sure if it actually changes from bank to bank or if it's a fixed price between EU countries.
  • JuicyJesus
    JuicyJesus Posts: 3,832 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    cebs wrote: »
    By changes to the terms I meant something like the bank starting to charge me a monthly fee or other changes that actually affect me, not the T&C. My bad, sorry.

    That's fine. However, you'll need to be given a great deal of notice before any new charges are imposed, much more than enough time to get switched to a new bank.

    I would be surprised if TSB or whoever started charging for a bog-standard current account anyway. It would be commercial suicide.
    What about the optional things? Mainly the low transfer cost. As I mentioned I'm not sure if it actually changes from bank to bank or if it's a fixed price between EU countries.

    That does depend on the bank you go with. In general I'd expect the fees to be much of a muchness, ranging between £6-8 per payment. (I checked HSBC and NatWest, Barclays don't seem to publish these fees on their website however.)

    I would be extremely surprised if you would find any bank that gave you an overdraft as an EU student with an irregular income, I'm afraid.
    urs sinserly,
    ~~joosy jeezus~~
  • EarthBoy
    EarthBoy Posts: 3,374 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    cebs wrote: »
    By changes to the terms I meant something like the bank starting to charge me a monthly fee or other changes that actually affect me, not the T&C.

    That could happen with any bank. A few years ago First Direct introduced a monthly fee if you don't pay in a minimum amount every month or have another product with them. About 20 years ago Halifax introduced a monthly fee on their savings accounts if your balance was less than £50, and the Britannia once charged you for all withdrawals if your balance was less than a certain amount. All these changes affected existing customers, not just new ones, so it could happen with any bank, at any time.
    cebs wrote: »
    OK, but the way I see it is that these branches have an uncertain future

    All branches of all banks face an uncertain future. They are closing them all the time.
    cebs wrote: »
    True, but I'm used to not receiving any letters from the bank (I've disabled my statements), I just get a receipt if money has been transfered into my account. That's why I'd rather not have to worry about letters.

    TSB will be using the same systems as Lloyds, so it's almost certain that you will be able to continue opted out of statements. Almost all banks offer this service because it saves them a fortune in postage.
    cebs wrote: »
    In other words I'm considering opening a new bank account for my convenience (despite opening one is quite a hassle).

    I don't see how something that's a hassle can be convenient at the same time. The best way of reducing the hassle to the minimum would be to stay where you are and let your bank become TSB. If you decide you don't like how it operates after the split then that's the time to move your account, not now.
    cebs wrote: »
    What about the optional things? Mainly the low transfer cost. As I mentioned I'm not sure if it actually changes from bank to bank or if it's a fixed price between EU countries.

    Each bank sets its own fees.
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