Any benefit to maintaining long 'relationship' with bank?

Chris4

I've had a Santander account since I was young (child saver, current account, student account, 123 current account, etc.). I'm 26 now. This means when the question "how many years have you been with your bank" comes up on the odd occasion, I can state 10 or so years. I am looking to change to one of the Best Bank Accounts, because the 123 account isn't what it used to be. I could keep open a free savings account or something to maintain 'my relationship' with Santander, but is there any actual benefit to this? Or is there no harm in closing off all accounts with them and going fresh with a new one?

[Deleted User]

Chris4 wrote: »

I've had a Santander account since I was young (child saver, current account, student account, 123 current account, etc.). I'm 26 now. This means when the question "how many years have you been with your bank" comes up on the odd occasion, I can state 10 or so years. I am looking to change to one of the Best Bank Accounts, because the 123 account isn't what it used to be. I could keep open a free savings account or something to maintain 'my relationship' with Santander, but is there any actual benefit to this? Or is there no harm in closing off all accounts with them and going fresh with a new one?

The question is usually how long have you had a current account with your bank, As I have multiple current accounts, I usually choose the longest. I'm not convinced it makes any difference to an application for an account with another bank, but I may be wrong on that so don't rely on my opinion.

Best thing to do would be to keep a current account open with Santander. Maybe downgrade your 123 to 123 Lite (for cheaper monthly fee while keeping cashback on DDs for council tax, gas/electricity and phones). Gives you access to the worthwhile Santander 5% Regular Saver (worth keeping that, if you have it, or starting it if you don't)/

EachPenny

Chris4 wrote: »

I could keep open a free savings account or something to maintain 'my relationship' with Santander, but is there any actual benefit to this? Or is there no harm in closing off all accounts with them and going fresh with a new one?

I would retain my longstanding current account, and also look to ensure that I have current accounts with at least two different banking groups.

There are two ways of getting the optimal outcome:
a) Ask to open a new standard current account (as a second account) with Santander, then use that account as a 'donor' to obtain a switching bonus. (full details on how to do this can be found on this board)
b) Open a new current account with a bank which doesn't offer switching bonuses - Barclays for example - then switch that account to a bank which offers switching bonuses.

Either way you retain your long-standing account, obtain the bonus for switching, and end up with two accounts with different banking groups.

The only reason not to do the above is if you are planning on making an application for credit (e.g. a mortgage) in the near future - in which case opening new accounts may count against you.