New bank acc to switch and get offers ?

pdonnell

Hi, I`m very happy to stay with my current bank account but I was wondering if I could open a new current account with a new bank, set up so my wages go in, add a couple or 4 direct debits then the next month do a 7 day switch to a new current account that pays me to move ? Then a month later do the same again and so on to receive all offers from all banks ?

I understand that this could affect my credit rating ?
Is this illegal ?
How long would I have to stay with each bank account for ?
How much could I potentially make ?
What else are the negatives about this ?

Thanks in advance...

bobobski

pdonnell wrote: »

Hi, I`m very happy to stay with my current bank account So do so but I was wondering if I could open a new current account with a new bank Yes, set up so my wages go in No, keep your wages where they are and set up a standing order to meet minimum pay-in requirements, add a couple or 4 direct debits Unless I've missed something, only Co-op requires 4 DDs and it wouldn't be my first choice so I'd say start with two then the next month do a 7 day switch to a new current account that pays me to move ? Then a month later do the same again and so on to receive all offers from all banks ?

I understand that this could affect my credit rating ? Yes, so not advised if you're about to make a big application like a mortgage, but effect may be minimised by not applying for an overdraft on any of these accounts.
Is this illegal ? Provided you're not acting fraudulently, no it's not illegal.
How long would I have to stay with each bank account for ? That depends on each bank's terms and conditions.
How much could I potentially make ? That depends on which accounts you apply for, but there are people on here who have made £1,000+ in a year.
What else are the negatives about this ? Hassle is the main one, and the chance of something going wrong with direct debits.

Thanks in advance...

Comments in red.

pdonnell

Thank you for the swift reply...:beer:

TheShape

Consider whether you might want to keep an account that you've switched to if it offers something worthwhile. You may not want to have one, but rather multiple switching 'chains'.

I switched to First Direct but have kept the account for the 6% (now 5%) regular saver. I switched to M&S but kept the account for the 6%(now 5%) regular saver and ongoing Gift Card incentive. I'm also staying with Halifax and Co-Op for their rewards.

You'll need to be organised and depending how many accounts you open and switch you may end up with lots of post, cards, PINs etc.

Katiehound

I would just say it might be easier to open a new a/c with your existing bank and then switch that in due course.

I too have switched to HSBC and M&S and stayed there for their regular high interest saver a/cs.... so if they go.... then so do I!!!!