Switching strategy for current accounts to get incentive payment

tg99

I have opened a current account with a couple of providers that offer c£100-125 for switching my existing current account to them, however, I don't want to lose any of my existing current accounts as all are from the usual list of high interest paying.

So as far as I can see from the various T&C, there is nothing stopping me from also opening a current account with a different provider that I have no desire for (e.g. as pays no interest etc), stick a nominal sum in of a few pounds, wait for a couple of months say, then use the switching service to close it and switch it to one of the providers I have recently opened with (as per first sentence above) in order to qualify for the incentive payment.

Just therefore wondered if anyone had gone down similar route and discovered any pitfalls to this strategy? E.g. I don't think there is any requirement to have to hold a current account for a certain period of time before being allowed to switch it with the 7 day service etc. (Am aware some of the accounts I switch to require direct debit, min amount to be deposited etc which is fine.)

Thks

Archi_Bald

It's perfectly ok to create 'donor' accounts, simply for the purpose of switching. Lots of people have done it.

Sam_J12

Yes, perfectly ok. As an example, this summer I opened three additional Coop current account. I transferred one to Halifax, and have received the £100 bonus, one to First Direct and have received the £125 bonus and the last to M&S and am waiting for my gift card. Just make sure any direct debits are set up before you start the switching process (if you need them).

tg99

Thanks for replies. Better hurry up then as Halifax switching offer applications have to be in by 18th Oct......which means am going to be opening an account elsewhere and then switching it to Halifax about a week or two later....would such a short time of holding an account before switching and thus closing it be likely to raise any red flags ?

bottleandahalf

Is there anyway of avoiding the Halifax monthly fee? Bit pointless switching for a £15 a month fee.

Archi_Bald

Use their fee-free account

markharriers

one to First Direct and have received the £125 bonus and the last to M&S


Tut tut why did you not go through the MSE link you would of got £150 :money:

markharriers

tg99 wrote: »

I have opened a current account with a couple of providers that offer c£100-125 for switching my existing current account to them, however, I don't want to lose any of my existing current accounts as all are from the usual list of high interest paying.

So as far as I can see from the various T&C, there is nothing stopping me from also opening a current account with a different provider that I have no desire for (e.g. as pays no interest etc), stick a nominal sum in of a few pounds, wait for a couple of months say, then use the switching service to close it and switch it to one of the providers I have recently opened with (as per first sentence above) in order to qualify for the incentive payment.

Just therefore wondered if anyone had gone down similar route and discovered any pitfalls to this strategy? E.g. I don't think there is any requirement to have to hold a current account for a certain period of time before being allowed to switch it with the 7 day service etc. (Am aware some of the accounts I switch to require direct debit, min amount to be deposited etc which is fine.)

Thks

I do it all the time great earner especially with Christmas coming (dare i say it)

0ne point...... why wait a couple of months if your switching and the other bank does not require direct debits you can switch as soon as you have your details for your donor account as it were.

Westie983

bottleandahalf wrote: »

Is there anyway of avoiding the Halifax monthly fee? Bit pointless switching for a £15 a month fee.

Open a reward current account and get £5 a month back if you fund with £750 a month and pay 2 different DD out each month and stay in credit the previous month, or the standard current account which doesn't require any monthly funding or give any rewards or interest.

Both of the above account will qualify for the £125 incentive being paid.

tg99

markharriers wrote: »

I do it all the time great earner especially with Christmas coming (dare i say it)

0ne point...... why wait a couple of months if your switching and the other bank does not require direct debits you can switch as soon as you have your details for your donor account as it were.

More just incase it came up as a 'red flag' when they see that I open a current account and then switch it away very soon after opening it. Then again banks know some people will be using such a 'switching strategy' so it probably won't be unexpected.

laura13x

Thinking of switching to Nationwide Flexdirect from my Barclays Student Additions Account, anyone know if I am able to do this or can it not be a student account?