New account switching service - have to close old account?

Archi_Bald

I believe the credit check aspect is vastly overrated. Unless you want to go for a mortgage or a big loan in the next 6-12 months, there is no reason why you shouldn't apply for as many current accounts as you like.

Stephen_C.

rb10 wrote: »

Nationwide's partial switch is outlined here:

http://www.nationwide.co.uk/current_account/switch_to_us/switch-bank-account.htm

(towards the bottom of the page, click Partial Switch)

Otherwise, if you choose to do a 'Full Switch', then your old account will be closed, regardless of what else you do.

Nationwide's site isn't very clear, can anyone say for certain that your old account may stay open as long as you like?

agrinnall

I managed to get a switch to FD started a few days before the new system was implemented, and they confirmed it would be completed using the old system so my 'from' account would not be closed. I won't be using the new system unless I am certain that I will never want to use the old account again, and I think that's quite unlikely. I believe it's a flaw in the system, they could easily have included an option to leave the old account open in the specification, and their failure to do so means it won't have the level of use that it might otherwise have.

EarthBoy

agrinnall wrote: »

. I believe it's a flaw in the system, they could easily have included an option to leave the old account open in the specification, and their failure to do so means it won't have the level of use that it might otherwise have.

I don't think it's a flaw in the system; I think they intentionally designed it that way. It won't be used as much by people who are just changing banks to get an introductory £100 or whatever, but banks don't want those customers. They want customers who genuinely want to use them as their main, if not their only, current account. I think the speed and ease of the new system will encourage these "genuine" customers.

innovate

Leaving the old account open would have meant gigantic complications - e.g. how would the banks decide which account to take DDs from, when to forward incoming payments etc etc. Any guarantee would have been literally impossible to give. So I would agree, it is not a flaw, but a deliberate key design element.

This switcher service is designed for people who don't know you can switch yourself, or how to do it. And/ or for people who don't know that it's quite ok to have more than one current account.


Bit of a spanner in the works for bonus-tarts, but nothing that can't be overcome with a bit of creative thinking / actioning. It also is, sadly, not much of an issue for bonus-tarts at the moment since there haven't been any even half exciting offers in months.

pmduk

brewerdave wrote: »

I have an (unsubstantiated) feeling that some of the losing banks are going to get "nasty" and close the old accounts anyway - I've switched all my DDs and both our salaries away from NatWest -all thats left are a few inward payments for share dividends etc and money my daughter is repaying me, these are used to settle a NatWest credit card- I've had several messages left by NatWest to contact them - I'll no doubt find out if my suspicions are justified!!:)

It's more likely you'll lose any overdraft on the account.

agrinnall

Earthboy and innovate - yes, of course it's the way the system was designed, I happen to believe that it's a flawed design. It might have been slightly more complicated to include an option not to close the old account, but I don't think the issues innovate raises would really be that tricky to overcome (and with more than 25 years experience in IT, much of it with banks, I know that much harder problems have been solved - Faster Payments for one).

John1993_2

agrinnall wrote: »

Earthboy and innovate - yes, of course it's the way the system was designed, I happen to believe that it's a flawed design.

But why? It is not to open new accounts, but to close the old one and open a new one. It does that just fine.

Your point is like saying that my swimming trunks have a design flaw in that they make a rubbish hat.

innovate

agrinnall wrote: »

with more than 25 years experience in IT, much of it with banks, I know that much harder problems have been solved - Faster Payments for one).

It is not an IT issue, it's a question of processes and procedures. And of scope, as John1993 quite correctly points out.

agrinnall

innovate wrote: »

It is not an IT issue, it's a question of processes and procedures. And of scope, as John1993 quite correctly points out.

Well, we'll just have to disagree on what the process and scope should have been. I think it's too limited, you don't.