Switching Accounts & First Direct Switch Back

1mrben1

Hi Guys,

Hoping you can help me out - Here's my scenario:

I'm 25 years old, with nothing in the way of savings (Aiming to change that fairly soon, but that's another subject entirely). I'm lucky enough to have a fairly stable job and always keep at about £0.

I have banked with Halifax since I was born, but am thinking of making the most of all of these switching offers and picking a few up.

I currently have 3 bank accounts and a Credit Card:
[LIST=2]
[*]1 - Halifax Easycash - Empty - Had it since I was 13
[*]2 - Halifax Current Account - Use it as my "day-to-day" account and has Paypal and my Phone Bill linked. Had it since 18.
[*]3 - First Direct - Empty - Every month I have my salary paid into here, my rent and internet come out by DD and then I transfer the rest to 2. Took it up this year.
[*]4 - Halifax Clarity Card - Solid usage the last few months in many countries and always paid in full. Took it out early this year, had other cards with HFX in the past but always cancel when times are good.
[/LIST]

My questions are 2-fold:

Firstly, I transferred to First Direct for their switching offer and they're a bit rubbish (card payments take 3 days+ to reconcile) - I'm keen to transfer to another account. Has anybody had any experience claiming their £100 "offer" for leaving them between 6 and 12 months?

Secondly, what's stopping me from transferring the First Direct account to multiple other accounts? I still have the day-to-day with Halifax and can pick up a few of the £100+ freebies from Clysdale, Yorkshire, Co-Op, M&S and then probably, back to Halifax...

Keen to know if this would affect my credit rating or anything else I'm not really thinking through? - New to all this money management

Cheers,
Ben

thebritishbloke

1mrben1 wrote: »

Hi Guys,

Hoping you can help me out - Here's my scenario:

I'm 25 years old, with nothing in the way of savings (Aiming to change that fairly soon, but that's another subject entirely). I'm lucky enough to have a fairly stable job and always keep at about £0.

I have banked with Halifax since I was born, but am thinking of making the most of all of these switching offers and picking a few up.

I currently have 3 bank accounts and a Credit Card:
[LIST=2]
[*]1 - Halifax Easycash - Empty - Had it since I was 13
[*]2 - Halifax Current Account - Use it as my "day-to-day" account and has Paypal and my Phone Bill linked. Had it since 18.
[*]3 - First Direct - Empty - Every month I have my salary paid into here, my rent and internet come out by DD and then I transfer the rest to 2. Took it up this year.
[*]4 - Halifax Clarity Card - Solid usage the last few months in many countries and always paid in full. Took it out early this year, had other cards with HFX in the past but always cancel when times are good.
[/LIST]

My questions are 2-fold:

Firstly, I transferred to First Direct for their switching offer and they're a bit rubbish (card payments take 3 days+ to reconcile) - I'm keen to transfer to another account. Has anybody had any experience claiming their £100 "offer" for leaving them between 6 and 12 months?

Secondly, what's stopping me from transferring the First Direct account to multiple other accounts? I still have the day-to-day with Halifax and can pick up a few of the £100+ freebies from Clysdale, Yorkshire, Co-Op, M&S and then probably, back to Halifax...

Keen to know if this would affect my credit rating or anything else I'm not really thinking through? - New to all this money management

Cheers,
Ben

Firstly, the card transactions thing is completely normal and is exactly the same no matter what card, bank etc you use.

If you want to transfer the first direct account elsewhere, you're able to do that. I have a feeling you can't get the FD £100 closing offer if you switch, you have to actually close the account.

1mrben1

Sorry, wasn't massively clear, with Halifax I can actually actually see the transaction as "pending" I.E. not in my available balance.

However, with FD it doesn't even show as pending, which I find mad. I could go and take all the money out and then consequently go overdrawn 3 days AFTER making a card transaction...

colsten

With Halifax, as with any other bank, you can only see card transactions/reduced balance that the Retailer has actually reported to the bank. Halifax have no magic by which they can sense when you used your card.

Relying on your available balance to be the amount you can actually spend is foolish as you can end up going overdrawn. The only one who can know what you spent is yourself.

The misconception of what available balance means crops up again and again, e.g.

https://forums.moneysavingexpert.com/discussion/5121532
https://forums.moneysavingexpert.com/discussion/5122390

meer53

You could always check your balance before spending any more money. Or, easier still, keep a note of what you've spent ?

If you use First Directs internet banking, if you select "make payment" from your current account, it will show your available balance.

colsten

meer53 wrote: »

If you use First Directs internet banking, if you select "make payment" from your current account, it will show your available balance.

which will be no more reliable than the available balance shown by any bank.

norm_

I wouldn't leave FD, you may want to use them for a mortgage in the future.

Simply setup a secondary or new current account if you want to take the bonus offers.

Archi_Bald

norm_ wrote: »

I wouldn't leave FD, you may want to use them for a mortgage in the future.

You would just apply for the mortgage as and if you need one, and as and if FD had the best offer for you. Being an existing or previous current account customer has no bearing on your mortgage application.

norm_

Archi_Bald wrote: »

You would just apply for the mortgage as and if you need one, and as and if FD had the best offer for you. Being an existing or previous current account customer has no bearing on your mortgage application.

Maybe, maybe not, for the sake of £100 it's not a risk I consider worth taking.

LeeBalders

You can claim the £100 service guarantee from first direct when you use the switching service; I did it. Just call and explain that you want to claim the service guarantee when the account is switched. I got a cheque in the post not long afterwards.