Who/How/When to Switch?

kayen

Hi everyone, newbie here!

Have been searching the threads & been "lurking" for a while but still can't figure out what to so so here goes. I want to take advantage of the switching offers but not sure how to go about it the best way. I have several accounts:

Main A/C= HSBC Advance x1 with Regular saver A/C & Loyalty ISA/save together offer- being used as my main income account
TSB Classic Plus account x1 (£2000 @ 5%)
Tesco A/C x2 (£3000 @ 3% x2 accounts) Also have the internet saver account
Santander123 (opened last week)- £15000 @ 3%. (no cashback as no qualifying bills)
Smile A/C x1 (opened last week)
Citibank A/C = dormant (they don't participate in the switching scheme)

Up until 2 months ago my only accounts were with Citibank & TSB. The other 4 accounts have all been opened since(!)

I opened the Smile acount specifically to hopefully use as a 'donor account' for switching purposes. I'm not sure if having opened so many accounts in such a short space of time will mean that a switch is declined or will cause problems.

Do you have to stay with Smile (or any banks) for a certain period of time before switching/ being eligible for the incentive and does it have an impact on your banking file in some way?
Any ideas who I should switch to?

thanks everyone

grumbler

kayen wrote: »

I opened the Smile acount specifically to hopefully use as a 'donor account' for switching purposes.

Why Smile that offer their own bonus for switching to them?

YorkshireBoy

Why Santander? That's going to cost you £60 a year from January (dropping your return to 2.6%, not 3%). Why not Club Lloyds and BoS instead?...for a 'clean' 4% and 3% respectively.


Close Citi...it's of no use to you now.


Where are you going to get your 2nd DD from to put on Smile prior to switching it (assuming your Tesco savings account is already on there)?


As to "any ideas who I should switch to?", surely you've researched who are offering incentives and drawn up a list in some sort of value order? I mean, you'd start with the highest wouldn't you?

kayen

Hi Grumbler, the reason I didnt switch from any of my accounts to Smile was because they are all either for the purpose of earning interest or other ongoing incentives (HSBC,TSB, Santander) or are banks not participating on the switching scheme (Tesco, Citibank).

YorkshireBoy

kayen wrote: »

Hi Grumbler, the reason I didnt switch from any of my accounts to Smile was because they are all either for the purpose of earning interest or other ongoing incentives (HSBC,TSB, Santander)

I think grumbler's point was you're about to abuse an account provider who could offer you a £100 incentive at some point in the very near future. Better to use such as NatWest or RBS, or even Barclays, for such donor accounts in my opinion.

or are banks not participating on the switching scheme (Tesco, Citibank).

Tesco do participate in the CASS, according to simplerworld...


http://www.simplerworld.co.uk/Pages/Banks.aspx#t

kayen

Hi YorkshireBoy, thanks for your reply.


From reading the boards and thinking about my situation I got the impression that I should have a 123 to keep the larger part of my savings together in one place as, even if I opened both a Club Lloyds & BoS, I would still have ‘excess savings’ needing a good interest bearing account/s to go to. I might look to open one of these in future though.



Although some of my interest bearing accounts are ones that would be eligible for the switching incentives (TSB, Santander) they are also good interest bearing accounts so I tend to think I should keep those and use other dummy accounts to do the switching (ie accounts I don’t want to keep). I am open to ideas though…


Re direct debits although I have no utility bills, I have professional membership subscriptions, paypal, tesco internet saver, credit card payments that I can use if I need to switch to an account needing DDs as part of the T & Cs.



What my query is about is looking for suggestions about who to switch to from Smile initially for the incentives . After the switch from Smile I would like to carry on switching as the accounts allow.
So my query remains how long would I need to stay with Smile (or any banks) before switching/ being eligible for the incentive and does it have an impact on your banking file in some way?


Am open to ideas )

YorkshireBoy

kayen wrote: »

From reading the boards and thinking about my situation I got the impression that I should have a 123 to keep the larger part of my savings together in one place as, even if I opened both a Club Lloyds & BoS, I would still have ‘excess savings’ needing a good interest bearing account/s to go to.

Lloyds & (3 x ) BoS would take a total of £20K. How much is in Santander?

What my query is about is looking for suggestions about who to switch to from Smile initially for the incentives .

FD, YB, TSB, Halifax, M&S, Co-op, Nationwide...


http://www.moneysavingexpert.com/banking/compare-best-bank-accounts?_ga=1.5110139.913355753.1442440331#bonus

So my query remains how long would I need to stay with Smile (or any banks) before switching/ being eligible for the incentive

You can switch your Smile account as soon as you have the debit card, and any requisite payments set up.


As to the second part of your question I'm not sure what you mean? Unless the incentive T&Cs state otherwise, you're free to move on just as soon as you've got your cash.

and does it have an impact on your banking file in some way?

It hasn't affected my credit rating as far as I can tell. Then again I have no need for credit so wouldn't care if it did! You may need a mortgage or other form of credit so your view may differ.

kayen

wow Tesco! ...maybe I was looking at an old link from moneyfacts dot co dot uk which didnt mention Tesco being in the switching scheme.

This changes things, thanks YorkshireBoy )

djpailo

Switching current accounts so regularly will show up on your credit file because most of these current accounts offer an overdraft facility.

I'm not 100%* sure whether they would appear as an "application for credit" or just a "search". Generally, its recommended to not apply for credit multiple times in a short space of time because the creditors may think you are desperate for credit. At least that is what I've read.

I'm in a similar position to you, wanting to maximize my gains, and I've got a Santander account which I want to switch/ close, but I am anxious about switching/ opening so many accounts in the short term.

*Someone with more expertise will probably need to correct parts of what I've said.

aggypanthus

Didnt I read that Matins findings were that its still worthwhile having the 123 acc, even after fees hike, BUt only if you have the max savings?

kayen

"I think grumbler's point was you're about to abuse an account provider who could offer you a £100 incentive at some point in the very near future. Better to use such as NatWest or RBS, or even Barclays, for such donor accounts in my opinion"


.Sorry for my ignorance I am not sure what this means. Do you mean better to open Natwest or RBS or Barclays account and switch between these?