Overhauling our Bank Account Setup and Credit Files

Lee_Howden

Currently my financial advisor (Mrs. Howden) and I have a current account each where our salaries get paid into. From there, we both have a standing order into a joint current account whereby all the household bills are paid out of via Direct Debit and other methods. These are all with the same bank. We are less than happy with the service we're receiving from them and have been contemplating moving for months now (once all new direct debits are in place etc).

I have in mind the account which will work the best for us and have earmarked this as the new joint household bills account. I would also like to move our individual current accounts too, but not necessarily to the same provider as the joint one. In effect, what we could end up with is three different accounts with three different providers. Also, in the future, I would like to look at an alternative credit card aswell.

My concern is with how this will affect our Credit Files, given that there could be applications going on within a short space of time. My plan is to apply for one at a time and get each account up and running ie do the switch and then give them a month or so to check all payments are OK before looking at the next one. Will this have a detrimental affect?

It's also worth noting that we switched Mortgage Provider around September last year and aren;t looking to do that for another 4 to 5 years.

Can anyone offer any information that will be helpful?

xylophone

I see no reason to delay switching your accounts if you are unhappy with your existing bankers.

http://www.moneysavingexpert.com/banking/compare-best-bank-accounts

cheesetoast

If it helps at all, I have a current account, my wife has one, then we have two joint ones - one packaged account that is purely there for the insurances, and one account that is used for the bills, because it pays cashback on them.

We pay a standing order into the bills account each month, and one to the packaged account to cover the monthly fee.

If I were you, I'd probably set up the new bills account first, get the DDs etc set up and working, that'll take a little while, and then move onto moving your own current accounts. But work out first which accounts with which banks will be best for you.

For a bills account, it'd be worth considering Natwest/RBS Reward or Santander 123. For the sole accounts, depending on pay in, capital etc, popular choices seem to be Halifax Reward, Club Lloyds, Nationwide Flexdirect.

badger09

Lee_Howden wrote: »

Currently my financial advisor (Mrs. Howden) and I have a current account each where our salaries get paid into. From there, we both have a standing order into a joint current account whereby all the household bills are paid out of via Direct Debit and other methods. These are all with the same bank. We are less than happy with the service we're receiving from them and have been contemplating moving for months now (once all new direct debits are in place etc).

I have in mind the account which will work the best for us and have earmarked this as the new joint household bills account. I would also like to move our individual current accounts too, but not necessarily to the same provider as the joint one. In effect, what we could end up with is three different accounts with three different providers. Also, in the future, I would like to look at an alternative credit card aswell.

My concern is with how this will affect our Credit Files, given that there could be applications going on within a short space of time. My plan is to apply for one at a time and get each account up and running ie do the switch and then give them a month or so to check all payments are OK before looking at the next one. Will this have a detrimental affect?

It's also worth noting that we switched Mortgage Provider around September last year and aren;t looking to do that for another 4 to 5 years.

Can anyone offer any information that will be helpful?

I can't foresee any problems at all with what you propose, as long as you are not asking simultaneously for 3 overdrafts :cool:. In fact it is sensible to have current accounts with at least 2 providers. That way, any system failures won't leave you both without access to your money.

Don't forget to check out the high interest current accounts, and switching incentives on offer;)

Lee_Howden

cheesetoast wrote: »

If it helps at all, I have a current account, my wife has one, then we have two joint ones - one packaged account that is purely there for the insurances, and one account that is used for the bills, because it pays cashback on them.

We pay a standing order into the bills account each month, and one to the packaged account to cover the monthly fee.

If I were you, I'd probably set up the new bills account first, get the DDs etc set up and working, that'll take a little while, and then move onto moving your own current accounts. But work out first which accounts with which banks will be best for you.

For a bills account, it'd be worth considering Natwest/RBS Reward or Santander 123. For the sole accounts, depending on pay in, capital etc, popular choices seem to be Halifax Reward, Club Lloyds, Nationwide Flexdirect.

The account I had in mind for the Bills account is the Nationwide FlexPlus, mainly for the insurances as this would cut our outgoings down on this. I looked into Santander 123 but it doesn't pay enough for us because what goes in more or less goes out.

As for the sole accounts, I think it'll be whoever offers the best deal for switching. Also, they have to be accessible for paying in and withdrawing at a Post Office, as this will be our main means of paying anything in. I know that Nationwide don't do this, hence why I was thinking of having this on our sole accounts. We can then transfer monies over to the bills account using Internet Banking.

Lee_Howden

badger09 wrote: »

I can't foresee any problems at all with what you propose, as long as you are not asking simultaneously for 3 overdrafts :cool:. In fact it is sensible to have current accounts with at least 2 providers. That way, any system failures won't leave you both without access to your money.

Don't forget to check out the high interest current accounts, and switching incentives on offer;)

The switching incentives will be key here, particularly on the Sole Accounts as they run down to zero through the month.