Rejected M&S current account

GWalters

So after reading the benefits M&S are offering for their current account i decided to try and switch...and failed. I'm quite new to banking in the terms of saving money... I've been on benefits for a couple of years now and recently found out i had been living off of half of what i was meant to be living on so had been getting £60 a week rather than £120. Anyway, I live alone and manage just fine and have just been backpaid around £5000 of which I have no idea what to do with it.
:eek:

Anyway, i had spoken to the bank on the phone for at least half an hour and told them my plans to open a current account and savings account in order to put £3000 in the current account and set up a standing order of £250 to the savings account (maximum) to earn interest at the end of the year and just got a big fat no at the end.

Anyway, i'm early 20s and just generally confused about what to do! Apparantly they'll be sending me information as to why i was unable to open an account. I've never had an overdraft, credit card or been in debt. I have had my details stolen once and somebody had rinsed my account of everything which was around several hundred quid when i was working a few years ago. I have got a flexible cash ISA that i put money in and out of and managed to save a quarter of my annual income (£400) this year. Any tips or advice on what to do or where to go will be greatly appreciated. In a nutshell, I'm annualy skint but i've got savings...

Thanks

enthusiasticsaver

Which bank are you with at the moment? The problem is if you have no credit history all banks are going to come up with the same answer and you do not want too many rejections on your record as this will impact on future applications. Have you looked on Noddle to see what you might be accepted for? They give suggestions as to which banks to try.

enthusiasticsaver

I also wonder whether it might be worth trying to open a Tesco internet saver (1.5%) (useful for direct debit if nothing else)and from there a Tesco current account which pays 3% on £3000 with no income requirement or direct debits needed which may be useful if you are on benefits. You are unlikely to be rejected for an internet saver account.

colsten

Before you apply for anything else, check your credit file. It may be something as simple as that you are not on the Electoral Roll at your current address, which can easily be rectified. But it might be something more serious.

You can get a free peek at noddle.co.uk. Don't buy anything from them, just look at what your credit records say about you. If you have any defaults or CIFAS markers that you shouldn't have, contact the CRA for further advice.

If there's nothing untoward and you can apply for another current account, don't tell them you want to use it as a savings account. They want current accounts to be used as current accounts.

tg99

GWalters wrote: »

So after reading the benefits M&S are offering for their current account i decided to try and switch...and failed. I'm quite new to banking in the terms of saving money... I've been on benefits for a couple of years now and recently found out i had been living off of half of what i was meant to be living on so had been getting £60 a week rather than £120. Anyway, I live alone and manage just fine and have just been backpaid around £5000 of which I have no idea what to do with it.
:eek:

Anyway, i had spoken to the bank on the phone for at least half an hour and told them my plans to open a current account and savings account in order to put £3000 in the current account and set up a standing order of £250 to the savings account (maximum) to earn interest at the end of the year and just got a big fat no at the end.

Anyway, i'm early 20s and just generally confused about what to do! Apparantly they'll be sending me information as to why i was unable to open an account. I've never had an overdraft, credit card or been in debt. I have had my details stolen once and somebody had rinsed my account of everything which was around several hundred quid when i was working a few years ago. I have got a flexible cash ISA that i put money in and out of and managed to save a quarter of my annual income (£400) this year. Any tips or advice on what to do or where to go will be greatly appreciated. In a nutshell, I'm annualy skint but i've got savings...

Thanks

It may be worth phoning up any other providers you are considering applying to fit a current account and check if they have certain requirements such as minimum income amount, employment status etc.

planteria

good news about your £5,000 windfall:)

take the advice above and think carefully about what you want to do.
try to live off what comes in, and cling on to that sum of money, trying to make it grow using the best accounts available to you.
current accounts will be the best 'savings' accounts you can get hold of..

when you can, it'd be good to [very cautiously] start to use a credit card for your essential purchases, clearing the balance in full each month.