Bank Account Switch - account age

Barndog

Hi all,

Long time reader, first time poster!

I've recently taken advantage of Halifax's switching offer (i.e - switch your account and receive the £100 bonus). Brilliant. I'd obviously like to reap another £100 bonus by switching to the Co-Op bank, or a £125 one with First Direct. However I have no other current accounts.

My question is, what's to stop me opening a new account (say with HSBC) and leaving it dormant for a week or two, aside from setting up two inconsequential standing orders (a couple of pounds to family members, for example).

After a couple of weeks, I then direct the bank I want to switch to the Co-Op. I then deposit the necessary £800, whilst keeping the standing orders. Once I get my £100 bonus I then pocket that and start the process again, switching to First Direct, for example.

It seems an admittedly fiddly, yet pretty easy way to make £2/300 (probably £200 for a couple of hours' work). I've had a search but couldn't find anything on how long you've had to have had an account before switching. For example, if you're account needs to have been live for six months, then my plan's obviously scuppered...for now at least.

Thanks in advance!

robotrobo

Barndog wrote: »

Hi all,




After a couple of weeks, I then direct the bank I want to switch to the Co-Op. I then deposit the necessary £800, whilst keeping the standing orders. Once I get my £100 bonus I then pocket that and start the process again, switching to First Direct, for example.

.

Thanks in advance![/QUOTE


at f/direct i never switched , still got the £100 ,

leeroy2009

theres about £750 with all the available switching offers, and on top of that cashback!


you can switch and ditch at anytime you like.

TartanSaver

I have twice switched accounts that were open less than a month. One of them had only been open for about 2 weeks, and had £7 in it. I'm fairly confident that there'd be nothing to stop you from doing this within a day of opening the donor account.

Barndog

leeroy2009 wrote: »

theres about £750 with all the available switching offers, and on top of that cashback!


you can switch and ditch at anytime you like.

So there's no restrictions. Wonderful, thanks.

Final question! I believe it can have a short-term impact on your credit score, which as I'll be getting a mortgage in the next five or so years (hopefully!) wouldn't be ideal. Any ideas on how long a bit of switching and ditching affects you for?

TartanSaver

Also, you don't normally need standing orders (though you might for co-op, not got to them yet.)

TartanSaver

Re credit searches, searches drop off after 12 months. If you open a basic account to use as a sacrificial account, there will usually be no credit search (as basics have no overdraft.)

YorkshireBoy

TartanSaver wrote: »

Re credit searches, searches drop off your Experian & Equifax files after 12 months and CallCredit after 24 months.

My experience in bold above.

I still have a BoS current account search on my CallCredit file (viewed through Noddle) from January 2013 (although I expect it to drop off when February's report is generated in a few days).

TartanSaver

I'll defer to your superior knowledge of this one. Without claiming to be any kind of expert, I'd be very surprised if a mortgage lender cared about a 23 month old search, or even cluster of searches from high street banks. For the OP looking to get a mortgage in about 5 years, it's definitely not going to be affect them. In fact it will help. Aggressive money management with plenty of accounts and opening bonuses is a great way to help build your deposit!