Can I switch without closing my old bank account?

calinan7

Hi All,
I currently have a TSB Graduate account with 0% interest on my overdraft. I constantly seem to be in overdraft so I have decided to do everything I can to pay it off in the next 8 months or so. To do this I am thinking to switch to a new account that has no overdraft (say first direct that gives you £125 on switching) and set a monthly direct debit from the new account into the old until my overdraft is paid. The question is can I switch without closing the old account? If not what is my next best option?

diamonds

Change to Santander 0% graduate overdraft and pay it off.

JimmyTheWig

I believe these days that using the switching service means that you automatically close the old account. It's because for a time after the switch, any payments made to the old account are redirected to the new account.

You can open a new account without switching, however. Then you can move any DDs, etc, yourself.
Note that if they are offering a switching bonus, as opposed to a new customer bonus, then you won't qualify.

eskbanker

I don't understand how switching would help anyway (other than the one-off incentive payment) - if the objective is to pay off the overdraft then why not just do so while still using the TSB account? Apart from anything else, if TSB see that you're no longer using the overdrawn account as your 'main' funded account then they might withdraw the overdraft facility and expect repayment on demand....

JimmyTheWig

eskbanker wrote: »

I don't understand how switching would help anyway (other than the one-off incentive payment) - if the objective is to pay off the overdraft then why not just do so while still using the TSB account? Apart from anything else, if TSB see that you're no longer using the overdrawn account as your 'main' funded account then they might withdraw the overdraft facility and expect repayment on demand....

It would help keep track.
Lets say they're trying to pay off a £1200 overdraft in a year.
If they continue with the single account then when they check their balance (lets say it is £1000 overdrawn) they have to take the overdraft into account (in this case they've got £200 left to spend for the month).
Next month they want to reduce their overdraft by £100, so when they check their balance (lets say it's £1000 overdrawn again) they have to take off what they want the overdraft down to into account (in this case they've got £100 left to spend for the month).
Gets pretty complicated.

Alternatively, they open a new account and get their wages paid into it.
Transfer £100 each month to the old account.
Old overdraft is cleared in 12 months.
New account balance is what they have left for the rest of the month.

iainscomputer

Hi, I wanted to open a new account to get interest on my balance, I also wanted to get the opening bonus that was available at that time, the account had to be switched to get the bonus.
But I wanted to also keep my old account open.
My old account was with Natwest, I just opened a new current account with Natwest & switched the new account.
I got to keep my old account & got the bonus.

JimmyTheWig

When was this, iainscomputer?