Account switching - bonus bagging?

Goldust

Hi,

Not sure if this is frowned up so please delete if required. I did a search but haven't found any recent or helpful discussions on bonus bagging.

I'd like to switch a bank account I've had for years but hardly use to another bank for the bonus that you get. Then repeat the process. I don't have any "active" DDs but could sort that easily enough.

Is there any sort of strategy or guide? Some seem more forgiving than others in terms of T&Cs but has anyone successfully done this? Seems like you could easily make at least £500 over the course of a few months...

badger09

Goldust wrote: »

Hi,

Not sure if this is frowned up so please delete if required. I did a search but haven't found any recent or helpful discussions on bonus bagging.

I'd like to switch a bank account I've had for years but hardly use to another bank for the bonus that you get. Then repeat the process. I don't have any "active" DDs but could sort that easily enough.

Is there any sort of strategy or guide? Some seem more forgiving than others in terms of T&Cs but has anyone successfully done this? Seems like you could easily make at least £500 over the course of a few months...

Many people have done this multiple times.

Some points to consider:

Retain a long standing account as it demonstrates stability should you need substantial credit in future

Don't 'abuse' one bank by setting up too many accounts for switching purposes

Some banks are choosier than others eg First Direct & HSBC

Some banks won't pay switching bonus if you have ever had any account with them in the past eg First Direct

Follow each set of T&Cs very carefully

Don't apply for too many new accounts in the run up to a mortgage application

I'm sure there are others:p

EachPenny

badger09 wrote: »

Don't....

I'm sure there are others:p

Don't come back to the forum bragging about how much money you've bagged as some forum members have bagged significantly more

Goldust

Thank you... so if others have done it is there a guide? Or should I keep a diary and share it later maybe?

I wasn't aware of the amount of impact on my credit score. I wouldn't be doing anything with my long-standing account which I have had for about 5 years now. The account I would be using is very old (about 20 years!) but it's not a particularly good one and I haven't used it for about 10 years... just kept it open so thought that would be a good candidate to start switching immediately...

EachPenny

Goldust wrote: »

Thank you... so if others have done it is there a guide? Or should I keep a diary and share it later maybe?

All the information you need is here on the forum. Start with deciding which account you want to try first and then use the search facility to find out if there are specific things you need to know about that offer.

Feel free to keep a diary, but perhaps keep it to yourself. Posting too much information can have a detrimental effect on other people, so discretion is advised. You may find you 'upset' some of the most helpful people on the board if you overshare

Goldust wrote: »

The account I would be using is very old (about 20 years!) but it's not a particularly good one and I haven't used it for about 10 years... just kept it open so thought that would be a good candidate to start switching immediately...

Unless you already have active DD's on the oldest account you are limited to how useful it is for switching. Personally I'd reactivate that account as one of my 'keepers' (have a few transactions going through it each month) and start by opening a new account elsewhere. Barclays would be my favourite starting point.

Goldust

EachPenny wrote: »

Unless you already have active DD's on the oldest account you are limited to how useful it is for switching. Personally I'd reactivate that account as one of my 'keepers' (have a few transactions going through it each month) and start by opening a new account elsewhere. Barclays would be my favourite starting point.

Thank you... I was just thinking use this one as it's the only bank that has a local branch I can walk in to and I can start to set up some "dummy" DDs straight away.

What's a keeper account? Why would I need one (and what's the benefit)?

YorkshireBoy

I'd be looking to keep a 20 year old account over a 5 year old account.

Does your unused account have a valid debit card? If not, you might wish to get one before initiating the switch

badger09

Goldust wrote: »

Thank you... I was just thinking use this one as it's the only bank that has a local branch I can walk in to and I can start to set up some "dummy" DDs straight away.

What's a keeper account? Why would I need one (and what's the benefit)?

Why do you want to walk into a local branch if you intend to use that account for a switch?

If you haven't used it for about 10 years, are you sure it is still active?

What do you mean by "dummy" DDs?

EachPenny

Goldust wrote: »

What's a keeper account? Why would I need one (and what's the benefit)?

They are the two accounts which I intend to keep long term regardless of any other switching. Two, because it gives some backup in case one bank has technical problems, so the two need to be with banking groups which use entirely different software.

As you open new accounts the average age of your accounts will decrease. The more new accounts you have the lower the average age. Some banks will look at the average age of your accounts as an indicator of the stability of your financial relationships, so ideally you want to protect this as much as you can as you open and close other accounts. As YorkshireBoy says, a 20 year account is a better indicator of stability than a 5 year old one, which is better than a 1 year old one. Very old accounts might not show up on your credit history though, something you might need to deal with at a later date if you find problems applying for new accounts.

There is no need to leave the comfort of your armchair to set up direct debits. The "Savings accounts accepting DD's" thread will see you right

Goldust

badger09 wrote: »

Why do you want to walk into a local branch if you intend to use that account for a switch?

If you haven't used it for about 10 years, are you sure it is still active?

What do you mean by "dummy" DDs?

Hello... I was just thinking that if I need to do anything to get "re-set up" on the account I could do it quite easily but see your point.

Dummy DDs I meant DDs I set up just for the purposes of qualifying for the switching bonuses and I'm not going to have any money coming out of them...

Think I get what I need now so thanks everyone - I'll keep checking back in!

Katiehound

YorkshireBoy wrote: »

Does your unused account have a valid debit card? If not, you might wish to get one before initiating the switch

Why do you want a valid debit card?
I found it was much easier not to have a debit card when I switched.

Q: Do you have a debit card?-
account 1-A: no I never had a card I did my transactions online (TSB)
Account 2-A: No, I cancelled it as I never used it (Halifax Reward no 2)