Switch forces closure of old account

RickJ

I've just been very disappointed by the current account switch system. My partner opened a TSB account, planning to switch her Santander account to it, so as to get the £130 bonus.

I was helping her do this, and it's the first time I've used the auto-switch system. I got to the end of the process and saw that it said the old account would be closed. There is no option on this.

She cannot, and doesn't want to, close the Santander account as she has a couple of savings accounts linked to it. If the account is closed then she won't be able to use or manage those accounts. She doesn't want to also switch them to another bank.

What this means is that because she can't use the auto-switch service, she won't get the £130. If she wants to get the other benefits of the TSB account (3% interest) she will have do do the switch the old, hard way, and with no protection guarantees if things go wrong. We're both reluctant to risk this (I've experienced such problems in the past before the switch system, and it's cost me money).

So we're shafted! No wonder the banks are prepared to pay you to switch to them - it forces you to terminate business with their competition. Scam is too strong a word, but I'm not impressed.

YorkshireBoy

RickJ wrote: »

I've just been very disappointed by the current account switch system. My partner opened a TSB account, planning to switch her Santander account to it, so as to get the £130 bonus.

I was helping her do this, and it's the first time I've used the auto-switch system. I got to the end of the process and saw that it said the old account would be closed. There is no option on this.

So two of you went all through the process without ever reading the T&Cs of the switch incentive?...which clearly state that the old account must be closed...

TSB_Incentive_T&Cs wrote:

1 (d). As part of the switch, transfer all active credits and debits which must include a minimum of 2 active Direct Debits from your old account and close it (this is called a full switch);

If she wants to get the other benefits of the TSB account (3% interest) she will have do do the switch the old, hard way, and with no protection guarantees if things go wrong.

She can get the 3% interest without switching! So no issue there then.

So we're shafted!

You (both) allowed yourself to be "shafted" by not reading the T&Cs first before applying, because if you had done she'd have opened another Santander account, moved two of her DDs to it, and then switched that one instead. There may even still be time to do this?

TheShape

RickJ wrote: »

So we're shafted! No wonder the banks are prepared to pay you to switch to them - it forces you to terminate business with their competition. Scam is too strong a word, but I'm not impressed.

Not shafted, you just wont get £130 because you don't want to switch your account to TSB which is what they would like you to do in return for the payment.

If you want the other benefits of the account such as 3% interest you can simply open the account and do the minimum required to receive that benefit.

What account is required to access the other accounts with Santander? You may be able to complete the switch of the Santander current account and open another Santander current account to maintain access. Opening the extra Santander account before completing the switch would be the best way to do this.

BoGoF

It's not even remotely close to a scam.

Does it actually surprise (and disappoint) you that part of the offer means they want you to close your old account. If you want the free cash thats their terms.

As has been explained there are ways to play the system by setting up other accounts to be transferred.

Katiehound

Sorry that's why it's called a switch- hint in the title! Switching your allegiance so that's why you get a little welcome bonus.

If you want to play the game you just open a donor account and switch that rather than your main a/c.
Of course that's probably not what the banks had in mind but in these days of limited interest earnings folk look for or make loopholes!

eskbanker

RickJ wrote: »

Scam is too strong a word

"Well-publicised feature" would probably be a better term, as per https://www.currentaccountswitch.co.uk/helpandsupport/Pages/help.aspx:

Do I have to close my old account?

Your old bank will close your old account as part of the switching process. This ensures that any payments made to your old account are automatically redirected to your new account.

If you want to, you can switch and keep the old account open, but you won’t be able to use the Current Account Switch Service.

tempus_fugit

RickJ wrote: »

No wonder the banks are prepared to pay you to switch to them - it forces you to terminate business with their competition.

Do you not think that is a fair trade? Or are you wanting them to give you money for nothing?

bigadaj

tempus_fugit wrote: »

Do you not think that is a fair trade? Or are you wanting them to give you money for nothing?

Well I think most people would agree that money for nothing would be better, but I am reluctantly accepting the cass switch on accounts to receive a switching bonus. I do take the extra step of setting up sacrificial accounts with banks I have existing accounts with though, which would be far too big a step for the OP, I hate to think what they'd call that!

tempus_fugit

bigadaj wrote: »

Well I think most people would agree that money for nothing would be better, but I am reluctantly accepting the cass switch on accounts to receive a switching bonus. I do take the extra step of setting up sacrificial accounts with banks I have existing accounts with though, which would be far too big a step for the OP, I hate to think what they'd call that!

Sure, money for nothing is always great, but it doesn't warrant calling something a scam because they actually want you to do something in return.

bigadaj

tempus_fugit wrote: »

Sure, money for nothing is always great, but it doesn't warrant calling something a scam because they actually want you to do something in return.

I'd call something a scam if I got money for it, accurate or not, but unfortunately that dissent happen, as the OP has discovered.