How often should I switch bank accounts?

PenguinYeltz

I've recently come across the HSBC account switch offer of £150, plus £50 after 12 months.

However it was only June of this year that I switched to Halifax to take advantage of their offer of cash back incentive to switch accounts.

I'm worried about potential negative effects of switching banks too often.

I've been with TSB (Lloyds TSB previously before they split) for all my life, which is my main account, where my wages go in etc. This has never changed.

I set up a Natwest account in 2010 to use as a control account where I transferred spending money per month. This is the account I switched to Halifax in June.

Any thoughts? It seems far too simple and easy to get 'free' money for switching an account.

There has to be a draw back somewhere.

[Deleted User]

It's not a big deal if you're maintaining longer history elsewhere.

RacingDriver

Negative effects may be an impact on your credit score, however if you are not using your credit score for anything else (such as a loan or a mortgage) then why not use you credit score to get free money from switching bonuses?

It is simple to get the switching bonuses, even though you usually have to meet certain conditions such as Direct Debits and minimum monthly deposits, however banks do this to get your business and then once they have you they can try and sell you other products such as mortgages which will make them a profit.

If you do not want to switch your Halifax account (isn't there a monthly reward payment that you get from Halifax so maybe worth keeping?) there is nothing stopping you from opening another current account (I use Nationwide for this) and then switching it immediately to HSBC to get the bonus.

DCFC79

The credit history may be impacted, the credit score no 1 else sees.

Dird

It's definitely had an effect on my report/score. I applied for lots together then First Direct & was refused on credit rating grounds. Waited a 5-6 months & re-applied and was approved (nothing else changed in circumstances).

ClearScore has said too many credit applications in the last 6 months since I joined but this month was the first time my score increased since joining. As long as you don't need anything for 6 months just do it, I'd do them all together.

I kind of want to apply for lots of credit cards for the cashback offers but will wait until re-mortgaging in May-July

20aday

Too many credit searches within a small time frame can come across as negative to potential lenders but a couple won't be too bad.

As it's six months since you've switched from NatWest to Halifax and assuming you've not had several hard searches in the meantime it might be worth it.

If you're a Halifax Reward Current Account customer it *may* be worth considering transferring to HSBC as they are cutting the £5 bonus to £3 from next year.