Basic Bank Account questions

-Selene

I attempted to switch/open current accounts with First Direct and TSB and both refused me. TSB offered their Cash account as an alternative which I've accepted, one of the main reasons was that on their website it said something along the lines of good management of the account will result in it being upgraded to a current account. (NatWest have done the same with my mother's basic account being upgraded to a current account after a year.)

I have three current accounts with NatWest and plan to close one when the TSB Cash account is opened (needs me to go in branch with ID) as my credit history has no closed credit accounts according to Experian (three current accounts and Vodafone -- EE doesn't show up on there) and that's a negative apparently.

However I'm now thinking that I could set up more basic accounts and use them as savings pots -- emergency funds, regular savings, and annual expenses kept separately. Obviously I wouldn't get interest like I'd do if I had current accounts, but I'd hope that after a period of time the bank would upgrade them to current accounts. By then I'd be in a better position and could switch those accounts to interest-paying accounts and/or get switch bonuses. Would this be a good idea and which banks would be best bearing in mind I don't want to keep the basic accounts for too long?

Is it also worth leaving my current accounts with NatWest empty (or with £1 or something) and set up two more basic accounts to replace the current accounts? Or should I continue using my current accounts for six months until my recent searches have dropped off my credit history? (Not keen on this as I have a security issue with NatWest )

Slightly unrelated too, but when I applied for FD and TSB current accounts I got two credit searches each instead of one (so four in total) -- is this normal? Or is it likely to be an error on Experian's part?

Sorry for all those questions but I'd really appreciate some advice

bigadaj

I'd probably leave opening or transferring accounts if I were you for a few months, sounds as though you aren't going to benefit from them in the immediate short term.

Ignore the experian advice, it's generally rubbish and purely to sell their products though reviewing your credit files to check accuracy is good practice.

Do you have a credit card, this is probably the best quickest and easiest way of improving your credit files. If not apply to so,done you bank with or one of the easier cards to get, such as Aqua, vanquis, capital one etc and put normal spend through it and pay it off every month. Make sure you have a direct debit set up, minimum payment at least and ideally for full balance but check your statements as well to confirm transactions are correct.

Using this over a few months will improve your credit report and is likely to help you in terms of current accounts.

-Selene

As I've said due to my security issues I'd rather not use my NatWest accounts any longer so I'm thinking I may have to resort to basic accounts for the short term.

Yes I've just applied for a CC and am in the first month of using it, DD was set up before the first transaction was made (for the full amount!) so I'm confident that a few months down the line I'll be able to switch the current accounts.

In the meantime I need a solution for the next few months.

colsten

-Selene wrote: »

(Not keen on this as I have a security issue with NatWest )

-Selene wrote: »

due to my security issues I'd rather not use my NatWest accounts any longer

Not sure what these security issue should be. Natwest banking is as secure as banking with any other regulated and authorised UK bank. If you think somebody might be using your card(s) or your online banking, you should talk to Natwest and get your security details reset.

-Selene

I lost my debit card and went into branch to withdraw money. After I gave my account number and sort code, the cashier asked me for ID and as I didn't have any on me, she asked further questions to verify my ID (how much my balance should be, how much rent I paid, who my phone bill's with, various others) which was pleasing as exceptionally few people would have passed all those questions.

Later that week I returned to branch (with ID in my bag) and saw a different cashier. After quoting my account number and sort code, the cashier moved the computer screen so I could check my balance and make subsequent transactions -- without asking me for ID or asking security questions :eek: I complained to the branch manager who didn't seem to understand the concern I had that anyone with my account number or sort code could walk into branch and access my account with this improperly trained cashier (he admitted he'd never been trained on what to do if a customer didn't have their card!) so I'm keen to take my banking elsewhere.

At the moment as I can't get a current account I'd settle for a basic at least temporarily and just keep the NatWest accounts open as donor accounts to use for switching later / for the cheque facility.