Make an unwanted account just to switch??

waxwing1989

Sometime next year I am going to want to open a First Direct Regular Savings account (only available with a current account) and I'll be damned if I'm going to miss out on the £100 switching bonus. Currently my Primary account is the Halifax Reward account (switched from Natwest back in Sept) and 2 TSB Classic Plus accounts for savings, I want to keep all of these so I am wondering if you think it is a good idea to open any old account with a new bank, just to switch to First Direct months later.

I wonder if you guys could help me out. Firstly, is this legit? haven't found this on the forum, or is that because it's a stupid idea?

Would this have serious negative implications on the credit check FD would carry out? Bear in mind I have opened the 3 accounts mentioned above in the last 3 months.

Finally, Are there certain accounts you would recommend for this, i.e. no/short minimum terms, no penalties, banks i'll unlikely want to join in the future?

Thanks

(P.S. just joined the forum, I hope I posted this in the right place)

grumbler

waxwing1989 wrote: »

...I am wondering if you think it is a good idea to open any old account with a new bank, just to switch to First Direct months later.

Do you mean 'new'? And it can be a new (second, third) account with an old bank.

>> Opening account for switching
>> Creating an account just to switch
...

Would this have serious negative implications on the credit check FD would carry out? Bear in mind I have opened the 3 accounts mentioned above in the last 3 months.

What 'this'? Recent credit searches do affect new applications.

waxwing1989

Sorry ' Any old' = slang, meant 'literally any'

And then I wanted to know if an account opened for a very short time had further implications other than the initial credit search.

Thanks

grumbler

Well, generally the short time doesn't matter, but as this information is available, any lender can have a personal view on this fact.

Archi_Bald

I am waiting for the post a few months or years down the line: "Bank won't give me a current account, can they do this!?!"

bolzano

As you are already with Halifax you should easily be able to open a basic Current Account online. Mine was accepted straight away and they didn't even do a credit check. It may be different for you as you have only been with them since September though.
I have done this twice within the space of a month to switch out :shhh:

Aquamania

waxwing1989 wrote: »

Sometime next year I am going to want to open a First Direct Regular Savings account (only available with a current account) and I'll be damned if I'm going to miss out on the £100 switching bonus. Currently my Primary account is the Halifax Reward account (switched from Natwest back in Sept) and 2 TSB Classic Plus accounts for savings, I want to keep all of these so I am wondering if you think it is a good idea to open any old account with a new bank, just to switch to First Direct months later.

I wonder if you guys could help me out. Firstly, is this legit? haven't found this on the forum, or is that because it's a stupid idea?

Would this have serious negative implications on the credit check FD would carry out? Bear in mind I have opened the 3 accounts mentioned above in the last 3 months.

Finally, Are there certain accounts you would recommend for this, i.e. no/short minimum terms, no penalties, banks i'll unlikely want to join in the future?

Thanks

(P.S. just joined the forum, I hope I posted this in the right place)

Yes, simply put, this is entirely doable.

I don't know of any current accounts that have minimum terms (other than possibly those that offer incentives, and all that means is you won't get those incentives)

The suggestion to open another account with a bank you already have an account with is a good idea if it doesn't result in a search of your CRA files.

(Any such search has a negative short term effect, the intensity of which will depend of the rest of your credit status)

Of course when you then apply to switch to FD, there will almost certainly be a CRA search done (which could adversely affect future credit applications in the short term)

Aquamania

waxwing1989 wrote: »

...And then I wanted to know if an account opened for a very short time had further implications other than the initial credit search.

Thanks

Usually no effect, other than as you describe

(plus of course the credit check for the new application which may affect future applications for a while, as I just described)