Switching bank accounts

Narola1976

So. I have been banking with HSBC for 14 years since I arrived in UK. About 12 plus months ago they upgraded me to Advance. I haven't needed to use the overdraft for some 18 months, perhaps longer. I hold a mortgage with them, still on the old guarantee which means my interest rate is 1.5%. I have a high interest credit card with a large balance. I have been very happy with HSBC but have seen Martin talking a lot about switching for cash back

So thinking about the co op deal he recently mentioned or first direct which is part of hsbc. I am worried about switching. Firstly as to whether I am eligible given my debt. I earn a lot but wouldn't you know it but that means very little if you spent years wasting money on crap and have nothing to show for it except debt! Also just worried it will mess up my orderly banking processes currently in place. Also if you can go from hsbc to first direct.

Ultimately it seems to be all about the switching bonus but if you have never had a problem with your bank is it right to switch...short term gain for what could turn out to be long term pain

Lastly I was thinking of asking hsbc if I could have a bank account in my native country of south Africa as it would be great to he able to send funds to mum without the money gram fees. Don't know if this is possible for the average Joe or if only for millionaires or big businesses

Would welcome some thoughts and insight. Thanks

eskbanker

Narola1976 wrote: »

So thinking about the co op deal he recently mentioned or first direct which is part of hsbc. I am worried about switching. Firstly as to whether I am eligible given my debt. I earn a lot but wouldn't you know it but that means very little if you spent years wasting money on crap and have nothing to show for it except debt! Also just worried it will mess up my orderly banking processes currently in place. Also if you can go from hsbc to first direct.

Assuming your signature is accurate then you do have a lot of debt so credit checks may well be problematic, although you've obviously secured plenty of credit before. Have you checked your credit files to see how you're perceived by the ratings agencies (as a proxy for actual lenders)? Assuming FD will let you open an account there's no problem with switching from HSBC.

Narola1976 wrote: »

Also just worried it will mess up my orderly banking processes currently in place.
[...]
Ultimately it seems to be all about the switching bonus but if you have never had a problem with your bank is it right to switch...short term gain for what could turn out to be long term pain

The switching service is designed to be smooth and seamless by shifting all inbound and outgoing payments for you, but what specific concerns do you have? One approach often recommended on here is to open a sacrificial account with your current bank specifically for switching, which would leave your existing one in place if you're just chasing joining incentives without wanting to disrupt anything.

Narola1976 wrote: »

Lastly I was thinking of asking hsbc if I could have a bank account in my native country of south Africa as it would be great to he able to send funds to mum without the money gram fees. Don't know if this is possible for the average Joe or if only for millionaires or big businesses

If you're looking to send money to SA, have you looked into currency brokers via the likes of http://www.moneysavingexpert.com/banking/foreign-currency-exchange? This is likely to be simpler and more cost-effective than opening another bank account there, but if you do want to have multiple accounts in different countries then I believe that HSBC are sometimes mentioned on here with that in mind so research that further before deciding whether or not to move from them.