MSE News: Faster current account switching is coming – but cards not included

pqrdef

pinkdalek wrote: »

what would you like to happen exactly?

I'd like the banks to stop pretending it's all so simple. For anybody who runs an active financial life from one or two accounts, switching can be a major hassle and BACS will only take on a small part of it.

I'll be staying in the club that says, never use a switching service to switch a real account, only switch a dummy account.

Archi_Bald

pinkdalek wrote: »

It's so good to see the negativity around this place.

pinkdalek wrote: »

Stop whinging people and coming up with such pathetic, and rare excuses.

Perhaps you could offer practical advice on / answers to the unresolved issues?

Arthur_Sleep wrote: »

I can't help but think that anyone umm-ing and ahh-ing about perhaps switching bank accounts once the new guarantee is in place is probably best advised to keep well away from this thread.

I do hope that all those people who believe in the magic 7-day switching [without doing anything yourself] will all read, and understand, this thread.

Of course, I would agree that there is absolutely zero reason why anybody should need to wait for the new switcher service, or should want to use the new switcher service. Anybody who would like to move their current account has been able to do so for a very long time (assuming they pass the credit check, obviously). This remains the case unchanged. No need whatsoever to rely on this half-baked "guaranteed" 7-day switch.

Archi_Bald

pqrdef wrote: »

I'll be staying in the club that says, never use a switching service to switch a real account, only switch a dummy account.

Yep, I'll be a member of that club too, until the "switching service" and its promoters actually come up with a comprehensive and convincing approach that has been fully thought through.

pqrdef

Archi_Bald wrote: »

No need whatsoever to rely on this half-baked "guaranteed" 7-day switch.

Unless the banks decide their best products are only available to people who switch.

Archi_Bald

pqrdef wrote: »

Unless the banks decide their best products are only available to people who switch.

I don't think this will ever happen. Best sign-up incentives - yes, but best products - no.

Going after a best sign-up incentive is still not a reason to ask them to switch the account that you rely on for your day to day finances. With a bit of out-of-the-box thinking, you will still be able to bag any sign-up incentive, without risking issues like getting stranded without a usable debit card.

pqrdef

Then there's the credits. With a DD, if the payee tries to take money from your old account, BACS can tell him you've switched, here's the new details, please update. But there's no such arrangement for credits.

So if anybody pays you money by BACS or FP, regularly or occasionally, you're going to have to get them to switch, before the 13 months redirection runs out. And you're going to have to do it yourself, and hope you don't get the account number wrong, and they don't.

That includes any savings accounts or investment accounts where you've registered the current account for interest payments or withdrawals (or Premium Bond prizes, from Gideon's own department).

And of course there are usually deliberate obstacles in the way of changing these things, for obvious security reasons.

pqrdef

Archi_Bald wrote: »

I don't think this will ever happen. Best sign-up incentives - yes, but best products - no.

Well Halifax are clearly intent on saying that their Reward account is only for use as a main account. If you don't want to use it that way, they don't want you to have it. They can do without customers they lose money on.

So logically the next step is to inquire after your sources of income and if you've got wages or benefits being paid into some other bank, they'll require you to switch that account.

rb10

pqrdef wrote: »

Then there's the credits. With a DD, if the payee tries to take money from your old account, BACS can tell him you've switched, here's the new details, please update. But there's no such arrangement for credits.

So if anybody pays you money by BACS or FP, regularly or occasionally, you're going to have to get them to switch, before the 13 months redirection runs out. And you're going to have to do it yourself, and hope you don't get the account number wrong, and they don't.

That includes any savings accounts or investment accounts where you've registered the current account for interest payments or withdrawals (or Premium Bond prizes, from Gideon's own department).

And of course there are usually deliberate obstacles in the way of changing these things, for obvious security reasons.

After all the negativity, it is good that you have found a place where the new 7-day system is better than the current system.

At the moment you have to update your bank details with everyone who may pay money into your account when you change bank accounts.

Under the new system, you'll have 13 months in which to do it. Plenty more time to ensure you've covered everyone.

JuicyJesus

pqrdef wrote: »

I'd like the banks to stop pretending it's all so simple. For anybody who runs an active financial life from one or two accounts, switching can be a major hassle and BACS will only take on a small part of it.

For most people, who have a single current account with maybe one or two sources of income along with some Direct Debits, it'll suit them down to the ground. You are clearly not one of those people.

Having a more complex financial life with a multitude of products and providers involves taking more time and care over it, which includes maintaining the right payment details for things like bonds if you're switching banks. As such...

I'll be staying in the club that says, never use a switching service to switch a real account, only switch a dummy account.

...is perfectly sensible for you. Same for me.

It's a decent new service. Not perfect, and it probably could never be by its very nature, but a marked improvement on what went before.

pqrdef

rb10 wrote: »

At the moment you have to update your bank details with everyone who may pay money into your account when you change bank accounts.

Not if I keep the old account. Which is usually going to be my preferred option.

We're losing the option of a bank-assisted selective switch. Instead we get a choice of either (a) a bank switch that does more than we want it to, though still falls well short of doing the whole job, or (b) do it yourself.