Creating an account just to switch?

JustAnotherSaver

I don't see this as being against any rules but for the sake of posting here and asking I'll just double check.

There's a few accounts around with varying switching incentives. My sister is interested in one of them in particular but doesn't actually have an account that she wants to switch. All her existing ones actually serve a purpose.

So since an existing couple of direct debits need to be on the account then is it all ok to create a new current account with some bank, set up a pair of direct debits on it (such as both paying 2 different Tesco savers) and then once those have paid out their first payment then go ahead and apply to switch this account over to the one with the incentive.

Of course you're gambling that the incentive will still be available come that time but such is life.

Thought i'd just ask before she goes and opens one up.

PeacefulWaters

Excellent idea. Except the Tesco savings direct debit is about to be scrapped.

JustAnotherSaver

Yeah I just read that immediately after posting this actually. Typical.

Good while it lasted. Not sure I can be bothered jumping through more hoops as the 2 direct debits were enough. I may bring some direct debits off my wages account and put them to other accounts but I'll have to have a serious think about this.

PeacefulWaters

Using two credit cards, even for modest amounts, and clearing the bill in full by direct debit works for me.

Modest charitable donations perhaps.

Or Bitmingham Midshires savings accounts and a regular direct debit.

Kim_13

If she's wanting to switch shortly, there shouldn't be any problem in doing this (Tesco Direct Debits are good until 22nd April, so unless the terms of the incentive say that Direct Debits need to be in place for longer than this to prevent them taking back the incentive, there's no reason not to go ahead.) At present the Tesco site says that deposits can be made via Direct Debit, so new customers should be able to set them up.

I would get one Internet Saver and one Instant Access Savings - two separate mandates are required in most cases, not one mandate paying out twice within the month.

It's advisable to open the switching current account with a banking group you don't want to retain any other accounts with, in case they decide that their facilities are being abused and close them.

JustAnotherSaver

PeacefulWaters wrote: »

Using two credit cards, even for modest amounts, and clearing the bill in full by direct debit works for me.

I was running through the accounts my wife and i have.

2x solo Halifax accounts
1x Halifax joint
2x solo Club Lloyds
1x Club Lloyds joint
1x BoS account (i've closed the other 2)

With 2 direct debits required for an account, that's 14 credit cards needed.

Modest charitable donations perhaps.

I thought about this but decided against it quickly for 2 reasons...
1) I like to keep my money. Call me tight but hey ho. All small amounts do add up
2) When it's all done with at the end of the year, interest paid in & then these (example...) £1 amounts given out, will it even be worth it?

JustAnotherSaver

Kim_13 wrote: »

It's advisable to open the switching current account with a banking group you don't want to retain any other accounts with, in case they decide that their facilities are being abused and close them.

Regards my sister and the Tesco savers - she already has 1 each of those accounts with them.

And regards setting up an account JUST to switch it, if she sets up with someone she isn't with then wouldn't she maybe need to go in to the bank to provide ID etc?

Like i've said previously, my family aren't THAT interested in banking. If it can all be done online and i can help them with that then they're fine but if they have to start going in to branch and taking time out that way then they fast lose interest (no pun intended).

YorkshireBoy

JustAnotherSaver wrote: »

And regards setting up an account JUST to switch it, if she sets up with someone she isn't with then wouldn't she maybe need to go in to the bank to provide ID etc?

That would depend on the age of her existing accounts, time at address, number of addresses in recent years, and whether she's been on the ER at all of them...and also on pot luck!