Switching banks - no accounts to switch. Open new accounts elsewhere first? Where?

Singh23

Hi, as a graduate it's time I actually bother to take advantage of the switching deals.

I've currently got two bank accounts - one with Barclays and one with Natwest. My Barclays account is my main account with many direct debits and is the account that my salary, my websites, friends and family have saved for payment transactions. Therefore, I'm reluctant to switch this account. My natwest account is currently being fully utilised at it's maximum allowance of minus £2000 (overdraft).

Is it best to open an account elsewhere first, set up direct debits to myself and then switch to a bank offering a switching incentive?

If so, which banks never offer switching rewards and are therefore best to sign up with right away? Ideally there are at least four available so that I may make use of all switching offers at the moment at once. I'd make the minimum payments for all and keep them for as long as they offer an incentive :j

Many thanks!

Katiehound

IMHO it is generally easier to open an extra account (or 2) with the banks where you already do business because they already know you so you don't have to prove who you are, what you earn and where you live!
I'd be inclined to open a basic a/c at each and then wait for switching offers to come round. I've not seen switching deals for either of the banks you already use.

I'm not sure what you mean by setting up DDs to yourself. The only one I know of is Tesco online saver. You could easily transfer any existing DDs (usually 2 are required) and then set up a standing order pm to cover that amount- so pick DDs that are a regular amount rather than a credit card payment which could fluctuate.

YorkshireBoy

Katiehound wrote: »

IMHO it is generally easier to open an extra account (or 2) with the banks where you already do business because they already know you so you don't have to prove who you are, what you earn and where you live!
I'd be inclined to open a basic a/c at each and then wait for switching offers to come round. I've not seen switching deals for either of the banks you already use.

With a (presumably?) 0% overdraft maxed out, I'd be inclined not to mess NatWest around too much...unless I was able to repay the overdraft on demand!

kingrulzuk

Singh23 wrote: »

Hi, as a graduate it's time I actually bother to take advantage of the switching deals.

I've currently got two bank accounts - one with Barclays and one with Natwest. My Barclays account is my main account with many direct debits and is the account that my salary, my websites, friends and family have saved for payment transactions. Therefore, I'm reluctant to switch this account. My natwest account is currently being fully utilised at it's maximum allowance of minus £2000 (overdraft).

Is it best to open an account elsewhere first, set up direct debits to myself and then switch to a bank offering a switching incentive?

If so, which banks never offer switching rewards and are therefore best to sign up with right away? Ideally there are at least four available so that I may make use of all switching offers at the moment at once. I'd make the minimum payments for all and keep them for as long as they offer an incentive :j

Many thanks!

I opened RBS Select account last month and switched it to Tesco

Dird

Open a basic Barclays account & switch it to Halifax, no DDs required

sieuph

Does anyone have a suggested time to wait between opening a donor account and actually switching it to another provider?
I assume if you just open and switch within a short space of time they will eventually stop you opening basic accounts for this purpose.

badger09

sieuph wrote: »

Does anyone have a suggested time to wait between opening a donor account and actually switching it to another provider?
I assume if you just open and switch within a short space of time they will eventually stop you opening basic accounts for this purpose.

'They' might:cool:

If you open multiple accounts with one bank and switch them almost immediately, 'they' might refuse to let you open any more. 'They' would be within their rights.

However, there are many other banks out there;)

Singh23

So to update - I managed to open two new accounts with each of my two banks without hassle today, many thanks for the suggestion Katiehound.

In regards to DDs, do they need to be legitimate DDs, such as utility bills or can I set up transfers between banks and they count as DDs? I presume it's not that simple

badger09

Singh23 wrote: »

So to update - I managed to open two new accounts with each of my two banks without hassle today, many thanks for the suggestion Katiehound.

In regards to DDs, do they need to be legitimate DDs, such as utility bills or can I set up transfers between banks and they count as DDs? I presume it's not that simple

It depends on the T&Cs of the individual switch incentive. You would need to check.

With a very few notable exceptions (one is mentioned higher up this page) transfers between banks are made by Standing Order (SO) not DD -so obviously, they do not count as DDs:cool:

Katiehound

Singh23 wrote: »

In regards to DDs, do they need to be legitimate DDs, such as utility bills or can I set up transfers between banks and they count as DDs? I presume it's not that simple

Yes, all your utilities can be paid by DD as well as council tax. This generally comes as 10 payments spread over the year (so misses out 2 essential payments!) however you can ask to pay in 12 installments instead. Credit cards also.
I pay everything I can by DD- but not if it means paying extra! such as is likely on annual insurances.

You might consider a charity DD- if not now, then in the future. Several charities suggest a minimum donation of £2 per month- I have seen such advertising for Save the Children, Christian Aid & Water Aid.