Switching banks - second thoughts

egyptiancotton

I don't think I'll be able to get a donor account set up and two DDs switched to that donor account in time for the switch, and maintaining two DDs in a donor account seems more hassle than it might be worth.

Beartricks

I've had my main account for fifteen years but I get absolutely nothing from it aside from travel insurance which I never use and which they're trying to phase out. It's my only account. I did have another one, which I closed out of anger about a year because it was more trouble than it was worth; I should have used that one to get the free money.

I'm trying to set up anything that will maximise my free money. That includes a higher interest/cashback current account, daily saver etc. Ideally I'd like to have a 'main' account that actually gives me something for my money.

My main problem is that I want to be making as much from my savings as possible over the next year, while also keeping my credit score up in order to get a mortgage. These are at odds with each other because apparently going for the quick free money by bouncing around accounts and opening new ones seems to be detrimental at least anecdotally.

Would switching my main account, opening a couple of savers, and getting a credit card in a short amount of time realistically look bad on my credit record? One credit score company I'm registered with states that my score is perfect, another says it's good but not quite perfect.

If anything it seems to me that moving from one account that isn't giving me anything to a few accounts that are letting me maximise the return I'm getting from the money in my bank, as well as a credit card that lets me keep my credit score up, shows that I'm making better financial decisions but maybe on paper that's not the case. Any thoughts?

egyptiancotton

I'll call TSB tonight to cancel the switch. If I cancel the switch and setup a donor account with HSBC and transfer that instead, would I still be classed as a new customer with TSB as I haven't technically switched? Although a current account has been opened ready for me to switch to.

badger09

lloydyyy wrote: »

I'll call TSB tonight to cancel the switch. If I cancel the switch and setup a donor account with HSBC and transfer that instead, would I still be classed as a new customer with TSB as I haven't technically switched? Although a current account has been opened ready for me to switch to.

I would ask TSB to cancel the switch and tell them you want a few days to think about it.

Then, when you've got your donor account set up, ask them to switch that one instead.

As the T&Cs can change, make sure you keep a copy of the ones relevant to your application date and that your donor account meets them, in terms of DDs etc. If the one on the main site now, applies to you, you have until 22 December to complete the switch.

egyptiancotton

I'll give the TSB switching team a call in the morning. If I cancel the switch and reapply when I have a donor account set up, I don't think I'll qualify for the switching offer. Just came across this part of the eligibility criteria:

"You won't get the bonus if you've ever got a switching bonus from TSB before or if you currently hold a Classic Plus account in your sole name."

As they've opened up a Classic Plus account ready for me to switch to, I don't think I'll get the switching offer if I cancel and reapply. I might delay the switch instead until I get a donor account set up.

egyptiancotton

Just spoke to TSB's switching team and they've destroyed the switch date (but kept the new account open) until my donor account is setup and ready to go. And then when my donor account is ready, I can re-apply for the switch via a different link on their website (https://www.tsb.co.uk/current-accounts/switching-bank-account/) which won't incur another credit check. They also explained that as long as I transfer 2 DDs over and pay in the £500 within 28 days, then I'll still be eligible for the switching bonus.

My other question was whether a potential lender would see a high number of settled bank accounts within a few years, if they were open for short period, and may come to the conclusion that I've been playing around and using the accounts for short-term reward gains.

badger09

lloydyyy wrote: »

Just spoke to TSB's switching team and they've destroyed the switch date (but kept the new account open) until my donor account is setup and ready to go. And then when my donor account is ready, I can re-apply for the switch

That is what I was suggesting.

lloydyyy wrote: »

My other question was whether a potential lender would see a high number of settled bank accounts within a few years, if they were open for short period, and may come to the conclusion that I've been playing around and using the accounts for short-term reward gains.

They might, but why does that matter?

As long as you're not opening multiple accounts in order to obtain credit they won't care, particularly as you will have one long standing, impeccably run account

egyptiancotton

badger09 wrote: »

That is what I was suggesting.

I thought I'd have to re-apply for the switch all over again via the MSE link, but they said there's no need, and instead I could apply via a different link as the account is now already open. Happy days :T

egyptiancotton

Quick update: I checked with HSBC and they said I'll be credit checked to open up a second account. I'm a bit hesitant to open up a donor account as I went through a credit check earlier this week to open the TSB account.

badger09

lloydyyy wrote: »

Quick update: I checked with HSBC and they said I'll be credit checked to open up a second account. I'm a bit hesitant to open up a donor account as I went through a credit check earlier this week to open the TSB account.

If your only concern about your credit record is because you want to remortgage in 2020, then forget a couple of credit searches in 2017.

If you don't ask for any overdraft on the new account(s), the impact of the searches, and subsequent opening and switching of a few accounts will have minimal impact in 2 - 3 years time.