Changing energy supplier - can I change my bank at the same time?

gazzaman28

OK I'm going in all guns blazing for 2015 & have just signed up to change energy supplier which should go through in the next few weeks. I'm also looking to change my bank account too, so really I'm asking is it wise to do this at the same time, seeing as I've only just advised the new energy supplier of my current bank details, or should I wait until that's all sorted out first before changing my bank?

CLAPTON

maybe have two banks (like millions of us)?

Vortigern

Unwise to do this simultaneously IMHO. If closing the old bank account, you should allow the new energy supplier to take the first DD from your old bank, then arrange the bank switch date to be a few days after the due date of your most important DDs.

gazzaman28

Thanks Vortigern, I suspected as much.

callum9999

Vortigern wrote: »

Unwise to do this simultaneously IMHO. If closing the old bank account, you should allow the new energy supplier to take the first DD from your old bank, then arrange the bank switch date to be a few days after the due date of your most important DDs.

And this is based on what exactly? When you switch accounts, the direct debits will move automatically - you don't need to call up the provider and change details.

If they take payment before your switch takes place then it will go through as normal. If they take payment during/after the switch then it will just come out of the new account.

The only reason I see for waiting is if the OP doesn't know when or how much the direct debit is for, and won't have enough money in both accounts to cover it coming out of either one of them.

gazzaman28

My concern is that my current DDs get transferred and but the new energy supplier doesn't get picked up by the transfer as no money has yet left the account so stays with the old account. By the way does the old bank account have to be closed as part of a transfer deal or is that purely my choice? I guess if I left (or transferred back once it was active) a few hundred in the old account if I could guarantee it would stay open then that would cover me for any potential problems.

realaledrinker

Your scenario will be automatically covered by the processes behind the Current Account Switching Service. Any receipts and payments (cheques, direct debits, CPAs etc) which attempt to debit the old closed account will be directed to the new for a period of 13 months.

Having said all that, we switched accounts on 12/12/14, the same day that a DD from M&S was due. M&S in their wisdom stopped the DD to the old bank at their end and represented it three days later to the new. And charged us £12 for a missed payment! All sorted since but not the first time M&S have underwhelmed me.

AFAIK if you use the switching service, the account is automatically closed and any balance transferred, providing the new bank has agreed to take any overdraft on.

Vortigern

callum9999 wrote: »

And this is based on what exactly? When you switch accounts, the direct debits will move automatically - you don't need to call up the provider and change details.

This based on a suspicion that the current account switching service can't switch a DD that does not yet exist. Why take the chance?

Archi_Bald

realaledrinker wrote: »

Your scenario will be automatically covered by the processes behind the Current Account Switching Service. Any receipts and payments (cheques, direct debits, CPAs etc) which attempt to debit the old closed account will be directed to the new for a period of 13 months.

I think you will find that only payments into your old account will redirected for up to 13 months. CPAs will definitely not be moved as part of a switch, and only DDs that exist at the time of switching will be redirected (by being set up on your new account, if the payee cooperates).

But feel free to prove me wrong by pointing us at official documentation that supports what you are saying.

pinkdalek

callum9999 wrote: »

And this is based on what exactly? When you switch accounts, the direct debits will move automatically - you don't need to call up the provider and change details.

If they take payment before your switch takes place then it will go through as normal. If they take payment during/after the switch then it will just come out of the new account.

The only reason I see for waiting is if the OP doesn't know when or how much the direct debit is for, and won't have enough money in both accounts to cover it coming out of either one of them.

If you switch banks once you have submitted your request and if you need to set up a new direct debit you should give the company your new bank details not the bank you are switching from as this would not be transferred across and would not be instated.

Example here - switch banks on Monday, on Tuesday decide to switch energy supplier, in this scenario give the new bank details.
Other scenario - switched energy suppliers on Monday gave them current bank details, want to switch banks now - probably not a good idea as current direct debit may not be set up in time to switch over to new bank.

If you have switched energy supplier first, it would be best to wait until you know the new direct debit is set up on your existing bank, this way the new bank will get the details from your current bank.