Questions for a 1st time switcher

Dowsett

Hi,

I am looking at switching a bank account to rather Co-op, First Direct or the HSBC current account.

I wanted to explain my circumstances before i apply to see if a switch is feasible / sensible.

I was made redundant at the end of Nov 2016 (recieved a payout). I have a job offer which i am supposed to be starting 1st Feb.

I am in the process of switching my energy supplier (credit check required).

I wouldnt rule out a mortgage application in the near future. Our house is for sale so if things work out we will be using our current mortgage supplier to borrow more - so not a new application but imagine checks are still carried out. I would guess the earliest could be in the next month or two.

I understand banks are gonna credit check me when switching accounts. Is it worth doing it in my circumstances at the moment?

I bank with Halifax and have a standard account that isnt in use. Can i use this standard account to switch to a Co-op / FD / HSBC current account and get the switch bonus? There are no DD on the standard Halifax account at the moment. I would be able to setup DD to meet requirements once the new current account is setup.

TIA

badger09

In your circumstances, I would not switch my 'main' current account. In fact, in most circumstances, I would advise keeping your longest held current account. Lenders and current account providers will do credit checks and if you do decide to increase your mortgage, a stable well run current account will be viewed positively.

I'm not sure what you mean by a 'standard' Halifax account, but assuming it is a normal current account you could indeed switch that. Just make sure you have any DDs etc set up on it before initiating your switch.

Most switching incentives are a 2 step process i.e. apply for new current account, then apply to switch your old account. So that gives you time to set up any necessary DDs.

If you say what you are looking to get from the switch, we might be able to suggest some alternatives.

Dowsett

Its just a cash card account.

No overdraft, no services etc, just a bank account where you can withdraw, transfer and make DD.

Well since the halifax is dropping to £3 a month soon i was looking at the monthly rewards just from putting wages in. I see what your saying about when it comes to the mortgage though so ill probably keep that current account.

colsten

What is your Halifax account called? They don't have one called "cash card". https://www.halifax.co.uk/bankaccounts/current-accounts/basic-account/

Why are you mentioning Halifax rewards? If you want to keep getting the £3, you obviously can't switch the account that would pay you the £3.

All very confusing.

Zanderman

There used to be a halifax account called cardcash, which might be what the OP means. It dates from the 1980s iirc - and was a novelty then. I still have one but never use it - it sits there, unused, with the same old £3 in it, whenever I log in to view my other Halifax accounts!

Not sure if it is switchable or not as it may not be a conventional current account.

But the OP is giving confusing info, suggesting staying with Halifax for the Reward, which doesn't tie in with the info about a 'cash card' account or a desire to switch away.

Perhaps the OP has more than one Halifax account - and wants to keep the Reward acc and switch the 'cash card' one?

Dowsett

Sorry for the confusion.

I have a halifax current account which gets the £5 reward (£3 from feb)

I have an old cash card account that ive had for years. It was my first bank account which i used to get paid when i was 16. It has no overdraft facility etc. Its just a bog standard bank account which you can setup DDs.

I didnt know if you could switch one of those accounts or if i had use a current account to switch to another current account.