Switching RBS to FD

allikerr002

Hi, I have recently taken steps to switch from RBS to First Direct. Bit worried though as I have a personal loan with RBS and also contents insurance. I obviously got a better rate for the loan as I was an existing customer, so worried I will now lose this rate. I have paid the contents insurance for 1 year, however also only received a good price for that as I was an existing customer.

Won't receive the £125 bonus from FD if I don't switch all my DD's to them, so bit worried it's all been a waste of my time.

Does anyone have any idea how this would work if I give FD the go ahead?

Much appreciated.

EarthBoy

It sounds like you've answered your own question. You'll gain £125 but lose your preferential rates on the loan and the insurance, so it sounds like you'll be worse off overall.

allikerr002

Well the contents insurance is already paid for so surely they can't change that, they could only charge me more if I renewed it when the time comes. Guess with the loan as it's longer term they would probably change the rate. FD have a similar rate but seems too much hassle applying for a new loan too. Wish I had thought about this before went through the rigmarole of getting certified passport etc for new account.

Archi_Bald

You need to check the T&Cs of your loan and insurance. There could well be a term in there that e.g. invalidates the insurance, or asks for the loan to be repaid immediately etc. We can't do any more than speculate since we don't have sight of your T&Cs.

System

It may be that you simply don't get the preferential insurance rates on renewal and that the loan rate will likely be set when it is taken out.

If you are based in Scotland, HSBC branch access is dire and their deposit machines can't even accept all Scottish bank notes.

allikerr002 wrote: »

Well the contents insurance is already paid for so surely they can't change that, they could only charge me more if I renewed it when the time comes. Guess with the loan as it's longer term they would probably change the rate. FD have a similar rate but seems too much hassle applying for a new loan too. Wish I had thought about this before went through the rigmarole of getting certified passport etc for new account.

allikerr002

At a quick glance the t&c's don't mention it, so might just phone to check. Just realised contents insurance is due for renewal in November anyway so not as big a deal as I first thought. Thanks for your help.