How does switching work?

april87

So I've been looking at switching bank accounts for a while now, but I still don't fully understand the whole ins and outs.

I am currently with BoS and have a £900 O/D that I am attempting to make my way out of, I get charged roughly £16 a month for it. I want to switch bank accounts (ideally one of these shiny ones that pays to switch).

Now to switch, I understand (correct me if I'm wrong) that everything should switch over inc DD. However, what are the options for me to have a new bank account, with a few of my DD switching over to the new account, whilst I still have my BoS account with a DD or two, so it still appears active all the whilst I transfer between £50-100 each month extra to clear the OD?

Sorry if this has been answered before, I have looked through the forum and can't really see what I am looking for.

Thanks

Baby_Angel

I have never used overdrafts. So I can't answer that question. However when you switch the existing account, the one you switch from will be closed. I believe that is one of the requirements. It was the case for the two I switched from.

Someone with OD experience will come along to answer that.

grumbler

MSE article: 7-day bank switching era begins: Full Q&A

Switching with an overdraft can be done only if the new bank gives you the same or bigger agreed limit.

april87

Thanks for that. In the article posted it mentions the old way of switching, is that just done online?

badger09

I'm not aware of any banks which offer a 'partial switching' service these days, and there are definitely none which would offer you a switching incentive for a partial switch.

However, there is nothing to stop you applying for another current account, manually transferring a couple of your direct debits to it (some can be done online, some you'll have to contact the payee), then using that account to switch to your target switch incentive paying account;)

Be aware though, that your current bank could decide to call in your overdraft at any time. It might be more inclined to do this if it spots that you are no longer using your account as it expects you to:o.

april87

Yeah Badger I was worried my BoS account might do that. Ah well I will leave it, pay off what I can and get the OD amount reduced then look at switching.

Thanks

Anthorn

april87 wrote: »

So I've been looking at switching bank accounts for a while now, but I still don't fully understand the whole ins and outs.

I am currently with BoS and have a £900 O/D that I am attempting to make my way out of, I get charged roughly £16 a month for it. I want to switch bank accounts (ideally one of these shiny ones that pays to switch).

Now to switch, I understand (correct me if I'm wrong) that everything should switch over inc DD. However, what are the options for me to have a new bank account, with a few of my DD switching over to the new account, whilst I still have my BoS account with a DD or two, so it still appears active all the whilst I transfer between £50-100 each month extra to clear the OD?

Sorry if this has been answered before, I have looked through the forum and can't really see what I am looking for.

Thanks

If MBNA Fluid card is still running the free money transfer to current account you might be better off with that to clear your overdraft before switching. In fact the Fluid card was touted for some time as a means of clearing an overdraft. Beware the transfer handling fee. If you can get it but there is an eligibility check.

grumbler

april87 wrote: »

...and get the OD amount reduced then look at switching.

Generally, reducing the limit isn't needed for switching. The new limit doesn't have to be the same.