2nd account as a switching mule.

John_L_M

Good morning,

in todays (17 January 2017) MSE's Money Tips email whilst discussing changing current accounts to 'tart' on deals Martin had this to say:

"Consider setting up a 2nd account as a switching mule. You could just keep switching your main account, yet that can be annoying. A mule account is a 2nd account you set up just so you can switch it. Just open it without the switching service, so it doesn't close down your existing account.

For the first mule account, best to avoid any accounts that may offer you free switching cash, so you don't disqualify yourself from using them. Then just open your bonus account by switching this mule account."

I have always been informed that it is only possible to have one current account at one time. Have I been lied to, or selectively mislead by banks wanting my business? Does anyone know anything I don't?

Answers please.

Diglea

Yep, you've been lied to.
I've always had at least 3 current accounts going at any one time.
Banks want you to only use their accounts which is why when you use there switch service they close the old account.

Hence, the need for a 2nd mule account.

Anyone any suggestions of accounts to use as a mule?

e.g. should be:
1) Basic bank accounts from banks that are never likely to offer any signup nonuses/incentives
2) Easy & quick to open (& operate) online, minimal fuss, paperwork etc


???

Mchambers

I have over 10 bank and building society accounts and always look to switch for incentives.

binaryuniverse

I've got 12 open at the moment. :rotfl:

jsloko

I literally just came to the forum hoping to see advice about this point too as the newsletter left me a bit puzzled... Would've been helpful if there were suggestions for banks to use as a mule but I presume MSE might get into hot water suggesting a certain bank to be used just as a mule?

Anyway - any helpful souls out there that have done this and have suggestions?
I was gonna go for Natwest select but saw they have a £125 switching offer too so I'd rather not...

misterzim

I opened a 'mule' account a few months back to take up the Clydesdale bank switch offer but the offer was pulled before I could take advantage.


This account has seen no activity in this time but would be easy enough to set up charity DD's to qualify for a switch incentive.


Does anyone know if inactivity or the age of an account gets taken into consideration by the incentivising bank as they could see this for exactly what is......a tart account?

badger09

John_L_M wrote: »

Good morning,

in todays (17 January 2017) MSE's Money Tips email whilst discussing changing current accounts to 'tart' on deals Martin had this to say:

"Consider setting up a 2nd account as a switching mule. You could just keep switching your main account, yet that can be annoying. A mule account is a 2nd account you set up just so you can switch it. Just open it without the switching service, so it doesn't close down your existing account.

For the first mule account, best to avoid any accounts that may offer you free switching cash, so you don't disqualify yourself from using them. Then just open your bonus account by switching this mule account."

I have always been informed that it is only possible to have one current account at one time. Have I been lied to, or selectively mislead by banks wanting my business? Does anyone know anything I don't?

Answers please.

Who told you that? At the moment I have 19 + 2 joint:eek:

jsloko wrote: »

I literally just came to the forum hoping to see advice about this point too as the newsletter left me a bit puzzled... Would've been helpful if there were suggestions for banks to use as a mule but I presume MSE might get into hot water suggesting a certain bank to be used just as a mule?

Anyway - any helpful souls out there that have done this and have suggestions?
I was gonna go for Natwest select but saw they have a £125 switching offer too so I'd rather not...

Usual suggestions are to open another account with your existing bank. It might be easier/quicker as they already know you.

Then take your pick. I would avoid those known to be choosy such as HSBC, First Direct & M&S. Barclays, Co-op and RBS have been mentioned several times, but I can't vouch for that.

badger09

misterzim wrote: »

I opened a 'mule' account a few months back to take up the Clydesdale bank switch offer but the offer was pulled before I could take advantage.


This account has seen no activity in this time but would be easy enough to set up charity DD's to qualify for a switch incentive.


Does anyone know if inactivity or the age of an account gets taken into consideration by the incentivising bank as they could see this for exactly what is......a tart account?

I'm not aware of any inactivity/age specifications but obviously the bank with which you hold this 'mule' (I don't like that word:cool:) account will have its own dormancy rules.

If a switch incentive specifies DDs, then you need to ensure you meet those criteria. I always advise have a smallish balance, rather than 0, so there is at least something to be switched;).

John_L_M

Thanks to everyone who has replied to my original post. I should point out, just to be absolutely clear, that I am talking about current accounts in my sole name, not current accounts in the name of a business or limited company or savings accounts. I have held many different savings accounts at banks and building societies especially during the height of the ‘carpet bagging’ frenzy of the 1990’s.

badger09 wrote: »

Who told you that? At the moment I have 19 + 2 joint:eek:

Whenever I have tried to open a new current account at a high street bank the staff have always asked me where my current account was with and told me that would have to be closed when opening the new account with them.

I supposed that I just took it on face value to be true and did not question it too much, especially the second or third time this happened when I tried to open a new current account at a different high street bank, and received the same answer.

I can see why having two or three current accounts would be advantageous, first to keep switching and getting the account opening bonuses but also some current accounts allow you to have a linked savings account where, subject to minimum amounts being paid into your current account each month, you can get unto 5% interest when you deposit unto £250 per month in the savings account. ( I have such an account with the Nationwide BS.)

I have to say I am wondering why anyone would want more than three or four current accounts though, just think of the postman bringing all those bank statements, and the size of your wallets, mine is full of loyalty cards, my debit card and two credit cards, if you have 10

Mchambers wrote: »

I have over 10 bank and building society accounts and always look to switch for incentives.

or 12

binaryuniverse wrote: »

I've got 12 open at the moment. :rotfl:

or 19+2 joint current accounts that means the same number of cheque books and debit cards/ATM cards!

Katiehound

We are also talking about personal current accounts!
Think I have... 13....
Ah but you don't have to have cheque books for starters so that limits the paperwork.

Some 'rewarding' accounts actually make banking online & paperless billing as part of the package- thinking TSB- that's how they (say they) can afford to pay interest and other 'plusness' deals.

These days it is fairly painless to open an account online, the chances are if you have banked with that business at some point in the last say, 12 years and haven't moved house they will already have details about you on their system.
You don't need to go into a branch and in my case I have 3 accounts where I'd need to drive about 200 miles to do so!! (A friend has these accounts too and chose Lerwick as her branch just because it sounded good- nevermind the inconvenience of getting from Wilts to talk to the manager!!)

When I wanted a 'donor' account I just opened another basic one online with an existing provider. I put about £20 in there and just let it tick over until I saw a great switch deal. I then 'groomed' the account setting up whatever was needed fo rthe t&cs of the switch deal... and hey presto.....then it was ready to go.

Just to add I do not switch my 'main' account- that has stayed constant for 8+ years

Zanderman

John_L_M wrote: »

...I have to say I am wondering why anyone would want more than three or four current accounts though, just think of the postman bringing all those bank statements, and the size of your wallets, mine is full of loyalty cards, my debit card and two credit cards, if you have 10 or 12 or 19+2 joint current accounts that means the same number of cheque books and debit cards/ATM cards!

Multiple current accounts are useful for the various 'extras' available - interest rates on certain amounts in the current account, linked regular savers with good rates etc. So for example Tesco Bank current accounts pay 3% interest on up to £3k, and they let you have 2 of those accounts. So it's worth opening 2 if you have £6k and want that good interest rate. Lloyds Club account, BoS Vantage offer 2%, TSB Classic offer 3% (i think) etc etc - but all only on certain amounts. And many have linked regular savings accounts at 5%.

In other words people use these multiple accounts for SAVINGS... As the interest rates are better than savings accounts. There are conditions of course - a certain deposit each month (which can be taken out again), some DDs etc.

There is no need to have loads of bank statements by post - that's what online banking is for - you just switch off paper statements. and no need to carry all those debit cards about - why would you? And most banks don't issue cheque books unless you specifically ask for one.

(PS I can tell you're new to this part of the forum!!)