Switching Accounts

Joshtwigs

Hi,

I am considering switching accounts from
Nationwide to Halifax, this is a slightly cheaper account and therefore feel this is an adequate reason to switch. (The switching reward is a nice bonus too) my one concern is I have been recommended and recommended somebody, and therefore I am concerned the recommendation award could be taken from all three parties involved.

Thanks for any help.

EarthBoy

Joshtwigs wrote: »

I am considering switching accounts from Nationwide to Halifax, this is a slightly cheaper account.

How is it cheaper? Both Nationwide and Halifax offer free current accounts. Unless you mean the accounts with added benefits, e.g. travel insurance, car breakdown cover etc., but in that case the Nationwide's account (FlexPlus) is cheaper at £13 per month, than the Halifax equivalent (Ultimate Rewards) at £15 per month.

Joshtwigs wrote: »

my one concern is I have been recommended and recommended somebody, and therefore I am concerned the recommendation award could be taken from all three parties involved.

If you've received the Nationwide switching bonus you need to keep the account open for at least three months, otherwise they will reclaim the bonus:

"If your recommended friend closes their account without good reason within three months of when we send the payment, we reserve the right to claim back the payment from both of you within six months of the account closure."

https://www.nationwide.co.uk/products/current-accounts/our-current-accounts/recommend-a-friend-tab#xtab:faq4

Joshtwigs

The halfiax account is actually £12 as long as you pay in £750 a month and have two direct debits this is criteria I meet would this be a satisfactory reason to leave as I get almost a free month per year.

EarthBoy

Fair enough, but don't forget that the Nationwide FlexPlus account pays 3% per year interest, which could easily make up the £1 per month difference in account fees if you keep a positive balance in your account. The Halifax Ultimate Reward account doesn't pay any interest.

ValiantSon

Joshtwigs wrote: »

The halfiax account is actually £12 as long as you pay in £750 a month and have two direct debits this is criteria I meet would this be a satisfactory reason to leave as I get almost a free month per year.

You don't need to give any reason. If you want to switch then switch.

If you received the refer a friend bonus within the last three months, however, then Nationwide will claim it back.

Badger50

How would Nationwide recover the bonus if both account holders emptied their accounts and closed them before the 3 months was up? I'm not intending to do anything of the kind - just curious.

ValiantSon

Badger50 wrote: »

How would Nationwide recover the bonus if both account holders emptied their accounts and closed them before the 3 months was up? I'm not intending to do anything of the kind - just curious.

It would appear as a debit on the account before the instruction to close was processed. This would leave the account holder with a negative balance that they had to pay back. Normal debt recovery processes would then follow.

It would probably also, therefore, result in overdraft charges, thus increasing the loss beyond the original £100.