How do they know (or care?) if you have closed the old account when switching?

jase1

How do they know (or care?) if you have closed the old account when switching?

When I switched from HSBC to Santander, the latter gave me all the benefits of the new account (and cashback from TCB at the time). However the HSBC account remained open.

If I were to move some non-cashback direct debits currently on the Santander account over to the HSBC account (to qualify for the £100 switcher offer), then switch the HSBC account again to TSB, would TSB actually decline the £100 credit if I were to transfer the DDs to TSB but leave the HSBC account open?

Only reason I ask is that the HSBC account gives a useful 4% interest in its regular saver account and this relies on the bank account remaining open. This runs out in November, so I'd prefer to leave it until then...

Thanks for any advice

LplateSaver

They close the account now as part of the switching process.

jase1

Ah. I knew my evil plan would be foiled in some way

Will have to think about whether it's better to risk the offer still being around in November or just forego the interest in the Reg Saver.

Thanks for the reply.

Ed-1

jase1 wrote: »

How do they know (or care?) if you have closed the old account when switching?

When I switched from HSBC to Santander, the latter gave me all the benefits of the new account (and cashback from TCB at the time). However the HSBC account remained open.

If I were to move some non-cashback direct debits currently on the Santander account over to the HSBC account (to qualify for the £100 switcher offer), then switch the HSBC account again to TSB, would TSB actually decline the £100 credit if I were to transfer the DDs to TSB but leave the HSBC account open?

Only reason I ask is that the HSBC account gives a useful 4% interest in its regular saver account and this relies on the bank account remaining open. This runs out in November, so I'd prefer to leave it until then...

Thanks for any advice

If you switch using the Current Account Switch Service, you are essentially giving the bank you are switching from an instruction to close the account you are switching from and redirect any payments to your new account. So HSBC should've closed your account.

LplateSaver

jase1 wrote: »

Ah. I knew my evil plan would be foiled in some way

Will have to think about whether it's better to risk the offer still being around in November or just forego the interest in the Reg Saver.

Thanks for the reply.

Yeah it changed in 2013, I think. Why not use a sacrificial account (opened solely to switch) in order to get the TSB incentive?

jase1

Ed-1 wrote: »

If you switch using the Current Account Switch Service, you are essentially giving the bank you are switching from an instruction to close the account you are switching from and redirect any payments to your new account. So HSBC should've closed your account.

TBH the £100 far outweighs the interest on the regular saver, so I am tempted just to do the switch at the end of the month and hope that HSBC 'forget' to close the account again, so I can plead ignorance with TSB...

jase1

LplateSaver wrote: »

Yeah it changed in 2013, I think. Why not use a sacrificial account (opened solely to switch) in order to get the TSB incentive?

Hmmm, didn't think of that. Will TSB be bothered about switching an account that's only a couple of weeks old though?

LplateSaver

jase1 wrote: »

Hmmm, didn't think of that. Will TSB be bothered about switching an account that's only a couple of weeks old though?

Don't think its in their terms that it has to be open a certain length and it didn't affect me getting the Clydesdale incentive. Unfortunately I can't get the TSB one because I already have the max number of plus accounts

jase1

Cool, thanks. I just have to work out now which bank is the most stingy (to avoid spoiling my chances of a switch later) and sort it out.

meer53

jase1 wrote: »

TBH the £100 far outweighs the interest on the regular saver, so I am tempted just to do the switch at the end of the month and hope that HSBC 'forget' to close the account again, so I can plead ignorance with TSB...

They won't forget to close it, it's done electronically once the balance transfers to the new account. Prior to 2013 it was possible to leave the old account open, it's not anymore.