Opening Halifax Reward Current account to simply take advantage of rewards. Any tips?

vinraw

I'm considering opening a Halifax Reward current account for the sole purpose of taking advantage of the £5 monthly reward. Are Halifax likely to close my account if I'm taking advantage in this way? If so, what can I do to help prevent them from taking this decision (e.g. I could make sure I use the debit card every so often if that helps).

I am planning on using the account like this:

Each month I will pay in the minimum required £750 (from an account in my name) and pay out two £5 direct debits (to savings accounts in my name). I will then transfer the remaining £740 amount back out again. I'll make sure there's at least £20 in the account at any one time.

Could these options help prevent my account from being closed?:

• Use the debit card every so often
• Create a third direct debit that's not a savings account in my name (e.g. to national lottery or charity)

Also, I've recently opened a current account with TSB. How long should I wait before opening the Halifax account so that it doesn't affect my credit file too badly? (presuming I don't want to switch accounts, I just want to open another).

Many thanks in advance for your advice

Vortigern

vinraw wrote: »

I am planning on using the account like this:

Each month I will pay in the minimum required £750 (from an account in my name) and pay out two £5 direct debits (to savings accounts in my name). I will then transfer the remaining £740 amount back out again. I'll make sure there's at least £20 in the account at any one time.

That's more or less what I do. I don't use the debit card or any additional DDs.

vinraw wrote: »

Also, I've recently opened a current account with TSB. How long should I wait before opening the Halifax account so that it doesn't affect my credit file too badly? (presuming I don't want to switch accounts, I just want to open another).

I don't believe opening current accounts will have much effect on your credit file, unless you're also applying for overdrafts. With that in mind, why not open a sacrificial account, then switch that to Halifax to bag the switching incentive.

vinraw

Hi Vortigern thanks for your input.

I have been considering taking advantage of the switching incentive too. However I don't want to sacrifice any of my existing current accounts. I've read other threads on MSE and the general suggestion seems to be to open an additional account with one of my current banks. But I would like to avoid giving my current banks any reason to frown upon me.

So I have been thinking of opening a Virgin Money current account, simply so that I can switch it to Halifax, What do you think of this idea? Is there any reason I shouldn't use a Virgin Money current account?

Many thanks

Vortigern

If it's a current account it should be possible to switch it.

It must be a current account, not a savings account, for a switch.

vinraw

@Vortigern Yes it's a current account but it is a pretty basic account.

It has no overdraft facility, but it does allow standing orders and DDs and it is part of the Current Account Switch Service / Guarantee.

Vortigern

http://www.simplerworld.co.uk/Pages/Home.aspx

Above link gives details of the current account service including a list of participating banks and building societies. You should check that Virgin is on the list.

vinraw

Hi Vortigern,

Virgin is indeed on the list.

Should I be concerned that because it's a basic account, it might look bad on my credit file?

Do lenders see that I have opened a basic account when they check my credit file? And could they interpret that as being in financial hardship?

YorkshireBoy

vinraw wrote: »

Hi Vortigern,

Virgin is indeed on the list.

Should I be concerned that because it's a basic account, it might look bad on my credit file?

Do lenders see that I have opened a basic account when they check my credit file? And could they interpret that as being in financial hardship?

No, no, and no.

vinraw

Thanks YorkshireBoy.

Does having too many current accounts with many different banks look bad on credit file?

Im thinking of taking advantage of co-op bank's switching incentive too. Should I feel guilty doing this to co-op, considering they are the more ethical bank and I will certainly be an unprofitable customer? Or should I rest assured that any losses I cause are covered by the hedge funds that are involved with co-op bank?