How many current accounts

SoupAnxiety

I'm currently a customer of first direct, I love their account and use their 6% regular savings account. I'm also with Santander purely for bills, shuffling money to cover bills and meet their minimum pay in requirements to get the % cash back on DD bills. FD has an overdraft, Santander does not.

I'm looking at setting up Co-op and Halifax accounts to get their monthly reward payments. These would be entirely artificial, with the minimum number of DDs setup (active) and the pay in requirement being met and withdrawn the next day (via standing orders). Does anybody know if I would qualify for the £100+ switching bonus each of the accounts have if I use their automated switching process? I would need flexibility to only switch the minimum number of DDs and leave the majority with my main first direct account, is the switch process all or nothing?

Apart from the SOs and juggling the money I don't think there are many gotchas with the above. The biggest one I can see if moving DDs to the two new accounts and having a £0 balance due to the artificial transfer, but I can get around this by leaving enough in the account to cover the DDs. Alternatively I could setup £1 charity donations to reduce the amount needed in the accounts.

Is there any impact on credit rating with having four current accounts? Only one would have an overdraft.

The above might seem a lot of work for £10ish extra per month but it's similar to when I setup the second Santander account - money for old rope. Between the current accounts and cash back cards I do pretty well getting money for nothing but am worried two more current accounts will make me appear a bit "risky" in the eyes of lenders!

Thanks!

Steve_xx

When you apply for current accounts there may be some impact on your credit rating, but it would only last for a short period, provided that you administered the account without going overdrawn etc. Obviously if you thought you were about to apply for a mortgage then you probably wouldn't want umpteen searches on your file at that point.
You may wish to consider Lloyds Club and TSB - not so much because of any switching inducement, but because they pay good rates of inteerest on your balance.

eskbanker

SoupAnxiety wrote: »

I'm looking at setting up Co-op and Halifax accounts to get their monthly reward payments. These would be entirely artificial, with the minimum number of DDs setup (active) and the pay in requirement being met and withdrawn the next day (via standing orders). Does anybody know if I would qualify for the £100+ switching bonus each of the accounts have if I use their automated switching process? I would need flexibility to only switch the minimum number of DDs and leave the majority with my main first direct account, is the switch process all or nothing?

Yes, the switching process (that qualifies for the bonuses you refer to) is all or nothing, in that it closes the old account entirely. You could open donor accounts with one or more of your existing banks, add DDs to these and then switch them, you wouldn't be the first to do this....

Westie983

No DD needed to switch to the Halifax, just that you agree to close the account you are switching from, and that you get the incentive (currently £125) if you have not had it before, or before January 2012.

badger09

Westie983 wrote: »

No DD needed to switch to the Halifax, just that you agree to close the account you are switching from, and that you get the incentive (currently £125) if you have not had it before, or before January 2012.

But as OP wants the monthly reward, he/she will need DDs to be set up at some point.

OP, you should check the T&Cs of each offer.

Some incentives/rewards need the DDs to be active on the account which is switched, some can be set up after switching.

SoupAnxiety

Thanks for the replies all.

The only way to get the switching bonus is via all or nothing switch. The donor account idea is a good one and satisfies the requirement. £200+ and £9 per month for doing nothing is tempting.

It would be fiddly but I have spare active direct debits which I could split between the donor accounts and then transfer (and close) these to Halifax / Co-Op.

DreamerFTB

I remember having read that some banks ask for a 3 months statement before switching to make sure that you are actually using the account. Is there anywhere a list of who does so? I am planning to switch to first direct, Halifax and nationwide soon.

eskbanker

DreamerFTB wrote: »

I remember having read that some banks ask for a 3 months statement before switching to make sure that you are actually using the account. Is there anywhere a list of who does so? I am planning to switch to first direct, Halifax and nationwide soon.

I've switched accounts to First Direct, Nationwide, Clydesdale and Co-op this year without any of them asking for this, it's the first I've heard of it....

bigadaj

DreamerFTB wrote: »

I remember having read that some banks ask for a 3 months statement before switching to make sure that you are actually using the account. Is there anywhere a list of who does so? I am planning to switch to first direct, Halifax and nationwide soon.

Not aware of this.

Personally opened donor accounts with Santander for switches to Halifax and nationwide and all went through without any problems.

DreamerFTB

Thank you guys, probably it was just some random post by someone who didn't know much. Thank you!

LXdaddy

DreamerFTB wrote: »

I remember having read that some banks ask for a 3 months statement before switching to make sure that you are actually using the account. Is there anywhere a list of who does so? I am planning to switch to first direct, Halifax and nationwide soon.

I did a switch from a donor account to M&S earlier this year and was asked how long my account had been open. I replied "not long" and there were no further questions on that subject.