Opening an account to switch -- good idea or bad?

JamieB2

Hello all

As I'm sure the rest of you have, I've just seen the £250 switching offer with YB/Clydesdale.

I currently only have one UK bank account, which I don't really want to close, but I do fancy getting £250 for free.

Will opening an account with any old UK bank, just to immediately switch and ditch, have a negative impact on my credit score/rating or similar?

If I recall correctly, opening a bank account involves a 'full' credit check that gets marked on my file.

I've contacted Santander, who my existing account is with, to see if they can hold it after the switching process, but not expecting much luck.

john1002

To take advantage of any switch in general will mean that account will need to close, so you will lose the Santander account unless you open a sacrificial account.

While any new account and search will have an impact on your credit file unless you’ve made loads of searches or opened lots of credit accounts you will be fine.

Good luck be let us know how you get on.

John

Vortigern

OP could open a second account with Santander, then switch that account, keeping the original account open.

Don't ask Santander* for advice on switching to another bank, they're unlikely to want to help you to go to their competitors.

(* or any bank)

Don80

I agree, just open a second account with Santander, and switch that. It should be fine. I rearranged my banking earlier this year as I was fed up with RBS, so I opened a new account at the Bank of Scotland, and then shortly after at the Halifax. I switched the RBS account over, all with no problems.

I also agree that asking Santander about leaving is not worthwhile. Any time you use the CASS the default is to close the old account. You can opt to leave it open, but you wouldn't get the £250 as the T&Cs state you must close the old account.
http://www.cbonline.co.uk/resources/e6ff10a6-1b40-4e44-82bb-c58130a1a538/149904_250_Cashback_DU250TCS.pdf

anna42hmr

Vortigern wrote: »

OP could open a second account with Santander, then switch that account, keeping the original account open.

Don't ask Santander* for advice on switching to another bank, they're unlikely to want to help you to go to their competitors.

(* or any bank)

I agree this could be a good idea, as an existing customer will probably get the account number and sort code the same day (or I have had this on other occasions) would only then need to wait for the debit card to switch (as they normally ask for this in a switch process.

A "sacrificial" account for switching incentive purposes is something a number of board members have. Ironically enough my sacrificial account that I intended to use down the line to switch into another account, is actually the one I am now using to switch my halifax account into (the Yorkshire account, which after the interest rate drop has not been very regularly used, is now the one that will bring me the highest incentive switch!)