Taking advantage of bank switching incentive using an inactive account.

akathatman

Occasionally offers of cash for switching bank accounts require that at least two active direct debits are transferred in the process. I'm trying to think of some new, unneeded direct debits for nominal amounts which could be set up in an old, unused account solely to take advantage of a switch incentive, for example a direct debit set up with a company such as 18866.co.uk where the amount collected can be as low as a few pence.
Does anyone else have an idea for a dd which will be both low cost and quick to become active?

Freecall

From https://forums.moneysavingexpert.com/discussion/4168667


List of savings accounts providers that allow, and don't allow, deposits by Direct Debit (as opposed to by SOs, debit cards etc etc).

Please add a reply if you have anything additional to report, or if you spot something incorrect. I will update this post as appropriate so we got the list all in one place.

Providers with Direct Debit feed:
Aldermore (by posting filled-in form, printed from site)
AA (1st deposit by cheque)
Egg (Yorkshire BS; allowing multiple DDs on same account)
Bank of Ireland Websave
BM Savings (existing accounts only)
Britannia BS (http://www.britannia.co.uk/_site/cha...ect-debit.html)
Cheshire BS http://www.thecheshire.co.uk/Custome...t-Debit-forms/. Might only be for mortgages and insurances
First Save
GE Capital
ICICI
ING Direct (now with Barclays, FSCS guarantee; 1st deposit by cheque; at least 2, may be more, linked accounts/DDs allowed)
Intelligent Finance
Monmouthshire Building Society (must use paper forms)
Nationwide Mysave (1 DD only)
Newcastle BS (selected accounts; can set up regular payments back to "linked" account)
Post Office (online set up)
Principality BS (can have more than one linked account; to set up, call 029-2038-2000, or send paper forms)
Saga (if you are 50+; 1st deposit by cheque)
Santander esaver (must complete and post form http://www.santander.co.uk/csgs/Stat...nt&maxage=3600)
Scottish Widows
TESCO Bank (multiple DDs allowed)
West Bromwich BS (selected accounts)
YBS offset savings if you have a mortgage there (allows multiple DDs)

Minimum opening deposits apply in some cases.

Offshore banks, such as Nationwide International, might allow DDs - - but beware, they have no FSCS protection.

ZOPA, Paypal, Charities, National Lottery: not exactly savings accounts, but they allow Direct Debits. Also Ratesetter (http://www.ratesetter.com/blog/Regular_Lender_Blog.htm)

See below for a list of charities accepting low-value DDs. More charities via http://www.justgiving.com/

If you have regular investments with firms like H&L or Investdirect, you might be able to set up Direct Debits with them.




Savings providers with no Direct Debit feed:
- most high street banks
- Barclays savings accounts
- Barnsley BS
- Cambridge BS
- Chelsea BS
- Coventry
- Derbyshire
- KRBS
- LLoyds savings accounts
- M&S Savings
- N&P
- National Counties
- Northern Rock
- Nottingham Building Society
- Saffron BS
- Sainsbury's Bank
- Skipton
- Yorkshire BS (except for old Egg accounts, it seems)


Some charities that accept £1 (or less) DDs:
(don't forget to tick Gift-Aid if you are a tax payer. Also, all companies pay about 50p to £1 per DD transaction, so please don't be mean!)
https://www2.amnesty.org.uk/giving/donate/give-monthly

http://www.unicef.org.uk/Donate/give-monthly/

http://www.redcross.org.uk/Donate-No...Giving-Appeals

http://england.shelter.org.uk/donate

http://www.oxfam.org.uk/donate

https://donations.rspca.org.uk/directdebit.aspx

http://www.wateraid.org/uk/

http://www.christian.org.uk/support/index.htm (1p min)


Politics:
https://www.edirectdebit.com/conserv...ty/step-1.aspx (min £1)

http://www.womensaid.org.uk/page.asp...tle=Donate+now (min 1p, apparently)

rb10

What switching incentives do not allow you to use standing orders instead of direct debits?

kidmugsy

p44 onwards
http://www.theaic.co.uk/sites/default/files/statistics/attachment/AICStats31Dec2013.pdf

See especially Pantheon: investing by DD, £10 p.m. and upwards.

akathatman

rb10 wrote: »

What switching incentives do not allow you to use standing orders instead of direct debits?

Switching to a Santander 123 current account seems to require that at least 2 direct debits accompany the account being switched from with no mention of standing order substitutes that I can see. Halifax doesn't appear to require a transfer of dd's but specifies that 2 have to be set up on the new account.
Incidentally, a change to the qualifying conditions since I looked at them in 2013 is that the account being switched from should be closed when the switch is complete.
One other potential hurdle when switching to Halifax, although not mentioned anywhere I could see, is that the £750 monthly account credit needs to be salary, I was turned down for the incentive payment because no employer details were entered on my application (retired) and despite all the other criteria being met.

Archi_Bald

akathatman wrote: »

Switching to a Santander 123 current account seems to require that at least 2 direct debits accompany the account being switched from

Are you sure?

akathatman wrote: »

Incidentally, a change to the qualifying conditions since I looked at them in 2013 is that the account being switched from should be closed when the switch is complete.

This is standard since the new guaranteed switching was introduced in Sept 2013.

akathatman wrote: »

One other potential hurdle when switching to Halifax, although not mentioned anywhere I could see, is that the £750 monthly account credit needs to be salary on my application (retired)

The account isn't limited to employed people. Did you provide your pension provider's name?

Ifts

akathatman wrote: »

Halifax doesn't appear to require a transfer of dd's but specifies that 2 have to be set up on the new account.
Incidentally, a change to the qualifying conditions since I looked at them in 2013 is that the account being switched from should be closed when the switch is complete.
One other potential hurdle when switching to Halifax, although not mentioned anywhere I could see, is that the , I was turned down for the incentive payment because no employer details were entered on my application (retired) and despite all the other criteria being met.

Have not switched to Santander so cant comment on how that goes but have switched an old account from Santander to Halifax.....

29 Nov - opened Halifax acc using the switch service
3 Dec - £100 switching incentive credited to Halifax acc
9 Dec - Balance transfer from old Santander acc to new Halifax acc
10 Dec - Credited £750 from my Santander 123 acc (transfered back on same day)
15 Dec - £1 DD to Tesco Savings
16 Dec - £1 DD to Tesco Internet Saver
2 Jan - Reward (net) £5 credited to acc

In my case I got the £100 switch incentive before I had even set up the 2 DD's or paid in the £750 monthly account credit.

I don't think the £750 monthly account credit needs to be salary???
I just transfer (via FP) £750 from a Santander 123 acc to my Halifax Reward acc (and back to Santander on same day) and I have received the monthly reward for the 2 months I've had the Halifax Reward acc open.

YorkshireBoy

Ifts wrote: »

15 Dec - £1 DD to Tesco Savings
16 Dec - £1 DD to Tesco Internet Saver
2 Jan - Reward (net) £5 credited to acc


I have received the monthly reward for the 2 months I've had the Halifax Reward acc open.

That's the first report I've read where someone has used "two different DDs" to the same DD originator.


It's been discussed many times on here whether this would work or not. Thanks for the proof.

YorkshireBoy

rb10 wrote:

What switching incentives do not allow you to use standing orders instead of direct debits?

akathatman wrote: »

Switching to a Santander 123 current account seems to require that at least 2 direct debits accompany the account being switched from with no mention of standing order substitutes that I can see.

The question was "What switching incentives..."?


The Santander account doesn't pay a switching incentive (if you go direct), ie a one-off payment for opening the account.


And Halifax, as you say, doesn't need DDs switching for the £100 switching incentive. It does, however, required 2 paid DDs each month for the ongoing Reward payment.

Ifts

YorkshireBoy wrote: »

That's the first report I've read where someone has used "two different DDs" to the same DD originator.

I have put that it works on several of my posts - you must have missed it.
Since I've had the Halifax Reward account I have got the fiver both in Jan & Feb by pulling a £1 DD from each of my two Tesco's accounts.

One is a 'Tesco Instant Access Savings' account and the other a 'Tesco Internet Saver' account.

I have used my 2 Tesco's accounts to help me with the 2 DDs requirement for both the Halifax Reward account and also my 2 Santander 123 accounts, it works on both of the accounts and long may it continue - fingers crossed!

Along with the ease that I can pay money in at my local Tesco store (saves going into town) and also using the Tesco accounts for the DD bit - I'm glad I kept hold of these accounts and didn't close them when the rate dropped.

OldGreyFox

Ifts wrote: »

Along with the ease that I can pay money in at my local Tesco store (saves going into town)

" Please note: from 2 April 2014, we will be making changes to the availability of banking services currently offered in Tesco stores. The deposit and withdrawal function will continue to be available in selected Tesco stores only. We will write to all affected customers to notify them of this in advance. We will update this webpage with details of available stores before the changes take effect."

http://www.tescobank.com/savings/savingsaccounts/instantaccess/banking-in-tesco-stores.html


Hopefully your branch is not affected by this.