Scared to switch!

SarahLu

So I've banked with HSBC all my life and have come to the conclusion that I want to switch. I'm thinking TSB due to the high interest rate on 2k, which is generally around about the amount I tend to have in my current account.

I'm not sure why but something is stopping me from taking the plunge! Has anyone got any experience of switching, did it all go smoothly? Is it worth it for the £100 a year I would gain from being with TSB?

NotRichAtAll

I had the same doubts the 1st time i switched, went from rbs to santander there really was nothing to worry about, it all went smoothly all my direct debits moved automatically and carried on as normal, it really was that easy. There have been a few people that have had problems but it think the positives far outweigh the negatives.

diamonds

Dont switch, a long term relationship is not to be thrown away. I came back to the UK and the only bank willing to give me any in branch account with iD from a good few was TSB as I had a child passbook account and a cashcard account at the same address lying unused for 20+ years with some little cash granny had banked.

TSB online - they accepted me. No ID nothing. I could not even get a basic account at old mans address at the usual culprits in branch, even showing up to date current international accounts and credit files. So a long term even unused account/s can be useful with a financial institution let alone a great past usage history.

HSBC has a 6% Regular Saver, start using it. Open a TSB Plus and transfer £2000 across and £500 a month in from HSBC.

Save with both. Quids in

SarahLu

I would only get 4% with the HSBC regular saver as my current account isn't an advance one. But that is a good point and I should have been paying into one of those already by now really...

One factor in me wanting to switch is I have recently had a credit check and my HSBC account doesn't appear on it. I've queried it and they said accounts opened over 10 years ago don't appear. That made me question the point of having such a long relationship if its not even going to show on my report if I apply for anything else. (Obviously HSBC would know if I applied for another product through them, but they may not have the best product at the time?).

diamonds

SarahLu wrote: »

I would only get 4% with the HSBC regular saver as my current account isn't an advance one. But that is a good point and I should have been paying into one of those already by now really...

One factor in me wanting to switch is I have recently had a credit check and my HSBC account doesn't appear on it. I've queried it and they said accounts opened over 10 years ago don't appear. That made me question the point of having such a long relationship if its not even going to show on my report if I apply for anything else. (Obviously HSBC would know if I applied for another product through them, but they may not have the best product at the time?).

Open another HSBC upto date current account or via M&S bank current account (HSBC with a M&S logo) with a 6% RS - AFTER the TSB application.

If another HSBC current account tell them it is to be a bills/DD account from your main everyday account - 2 HSBC accounts that may force the computer to report both to credit ref agencies given 1 is under 10 years old


HSBC also do no fee current account with a 6% RS http://www.hsbc.co.uk/1/2/current-accounts/hsbc-advance/preferential-rates-and-rewards#expanding_header_1


A long internal history can be as important as external one when credit checks/new products happen.

bravotango

I do agree with having a long Banking history with a particular provider argument.

However, just wondering why it disappeared. Would opening up multiple new current accounts cause one to disappear off the list?

I have a small handful of "active" current accounts, but I also noticed that only one of them (ironically the one I use the least!) is the one that is only displayed in my credit report (this is across all three CRAs).

diamonds

bravotango wrote: »

I do agree with having a long Banking history with a particular provider argument.

However, just wondering why it disappeared. Would opening up multiple new current accounts cause one to disappear off the list?

I have a small handful of "active" current accounts, but I also noticed that only one of them (ironically the one I use the least!) is the one that is only displayed in my credit report (this is across all three CRAs).

Exactly, with no credit history to talk of since late payments fell off TSB was willing to punt me a full current account because I had a 20 year history of accounts, unused but never any debt due TSB, ever.


No you misread, sometimes taking a new product inhouse that reports behaviour forces the computer to start reporting old in use accounts no longer reported with the new one when it starts repoting. It establishes a long term relationship externally again on credit ref files, which can be seen as a positive by creditors searching, loyalty and financial history/payments.



How long have you had these 'active' accounts? They may have fell off.


Remember it costs to report and use CRA for creditors, it is not free, long term loyalty within a organisation is not always rewarded internally or externally, let alone to CRA.

Sometimes by computer or staff it will drop the reporting to save money given you are a great customer internally, they dont give a flying pig if it has a negative impact on your credit file just as long as it is not a negative on their books...where the computer will automatically start paying the reporting fees to CRA again because you are a bad boy/girl.


Theses days it is by data volume charges to CRA, and if you can reduce overheads on good customers it can be done to save cash, manually or automatic.

fromtheshires

I would switch every time after doing it the first time. There was a DD that didnt get paid as a result of the switch and true to the switch promise, everything was all sorted out without a single mark against my credit history and I even got some compo thrown in as well for the cost of the phone calls.

Could you not open up a sacrificial Midland account and then after a few weeks switch it all out. That way you get to keep your original account to keep the long term relationship that people are saying to keep (personally long term to me is 5 years tops) and you then get the best of both worlds and if you use TCB / Quidco you may even get a switch bonus too if you do it that way.

SarahLu

diamonds wrote: »

HSBC also do no fee current account with a 6% RS http://www.hsbc.co.uk/1/2/current-accounts/hsbc-advance/preferential-rates-and-rewards#expanding_header_1

I'm not eligible for this account as I can't guarantee to pay in the minimum amount they ask for each month.

I do have an ISA with HSBC too, so would the long relationship I have with them continue through that?

Fromtheshires, I'm not sure what you mean...Wouldn't that mean I'd have to manually transfer all my direct debits etc to the new HSBC account before switching it to TSB?

I'm thinking I may just open up a TSB as diamonds suggested and just switch my salary to get paid into that to cover the minimum monthly pay-in requirements and get the 5% interest, then just leave everything else as it is in HSBC...

pollypenny

I opened an account with the Midland when I was 17 and transferred to Nationwide last year after 50 years.

HSBC don't give a damn about loyalty. We were Premier customers, the benefits of this account were being eroded and, as we are retired, we aren't interested in any long-term bonds.

Two years ago I opened a Santander 123 account for saving and paying bills, transferring my D/Ds separately. There was one hiccup, but well worth it as we've made a tidy sum.

The 'proper' switch from HSBC to Nationwide went very smoothly, although from start to finish it took more than seven days.

diamonds

SarahLu wrote: »

I'm not eligible for this account as I can't guarantee to pay in the minimum amount they ask for each month.

I do have an ISA with HSBC too, so would the long relationship I have with them continue through that?

Fromtheshires, I'm not sure what you mean...Wouldn't that mean I'd have to manually transfer all my direct debits etc to the new HSBC account before switching it to TSB?

I'm thinking I may just open up a TSB as diamonds suggested and just switch my salary to get paid into that to cover the minimum monthly pay-in requirements and get the 5% interest, then just leave everything else as it is in HSBC...

Good idea, a ISA alone is just a savings account and not reported. use HSBC for some direct debits and transfer from TSB to cover them.



"Eligibility requirements
Please ensure you can answer YES to the following questions:
Are you 18 years or over?
***Will you be paying in at least £1,750 into your account each month (or a minimum of £10,500 every six months) not including money transferred from any other sole or joint personal account(s) you hold with HSBC Bank?***
Are you happy for us to undertake a credit register search, credit scoring and internal checks?
Can you provide us with the information and documents we require?
HSBC Advance Bank Account is subject to status and internal checks.
If you don't meet the eligibility requirements, we'll change your account to our Bank Account. We'll always tell you at least two months before we convert your account."


***Can you pay in/out to your HSBC/TSB several times around payday ?