Would this trick work?

bp5678

Say I'm with bank account A who I like due to good interest.

Bank account B has a great sign up perk.

I don't want to do a switch between account A and B because I like 'A' and don't want to leave.

So I set up a bank account with option C which is a bad bank I don't want to be with. I then do a switch so I lewve C and join B. Meaning I get the sign up perk of B and leave account C that I never had an interest in?

deadendwaterfall

bp5678 wrote: »

Say I'm with bank account A who I like due to good interest.

Bank account B has a great sign up perk.

I don't want to do a switch between account A and B because I like 'A' and don't want to leave.

So I set up a bank account with option C which is a bad bank I don't want to be with. I then do a switch so I lewve C and join B. Meaning I get the sign up perk of B and leave account C that I never had an interest in?

Yes, lots of people on here do exactly that, I'm currently in the process of doing that, I've set up an account with Barclays even though I don't like them, just so I can switch to NatWest to get £125.

bp5678

Thanks deadendwaterfall (sorry don't know how to quote you).

I plan on signing up with several banks then... M&S, first direct, and 1 or 2 others. I'll move money from account to account and can set up multiple direct debits so I'll be fine.

This will mean I need 4 bad banks in order to do the switch. Do you know any 'bad' banks to do the switch with?

Final 2 questions:
1) will this affect my credit rating?
2) do I need to be with a bank for a certain length of time or can I do this switch immediately?

deadendwaterfall

bp5678 wrote: »

Thanks deadendwaterfall (sorry don't know how to quote you).

I plan on signing up with several banks then... M&S, first direct, and 1 or 2 others. I'll move money from account to account and can set up multiple direct debits so I'll be fine.

This will mean I need 4 bad banks in order to do the switch. Do you know any 'bad' banks to do the switch with?

Final 2 questions:
1) will this affect my credit rating?
2) do I need to be with a bank for a certain length of time or can I do this switch immediately?

It might affect your credit rating slightly but not drastically.

Try setting up 2 with Barclays.

Some banks I believe yes, you do need to be with them for a certain length of time before getting the incentives but not NatWest for example.

colsten

bp5678 wrote: »

This will mean I need 4 bad banks in order to do the switch. Do you know any 'bad' banks to do the switch with?

You don't need any 'bad' bank, just an account you can switch. This can be an account with your existing bank. Search the forum for 'donor account'

bp5678 wrote: »

Final 2 questions:
1) will this affect my credit rating?
2) do I need to be with a bank for a certain length of time or can I do this switch immediately?

1 - short term only. Not an issue unless you want to apply for a big loan in the next 6 or so months

2) I know of no switch T&Cs that stipulate any minimum time requirements. Do you?

PRAISETHESUN

This is definitely doable.

If you care about your banking relationship with bank A, then by all means open up accounts with a third bank - try to pick one which usually doesn't offer switch incentives so you don't potentially miss out on something down the line - Bank of Scotland or Santander might be good candidates as I haven't seen them offer switch incentives before. Otherwise, if you open up a second account with bank A, and then use that to switch to bank B it can be easier since you don't have to provide ID, etc a second time.

Something to note: opening multiple current accounts (particularly in short succession) can have a detrimental impact to your credit file, as multiple hard searches will be performed. Keep this in mind as you may find yourself denied for credit (or even other current accounts) in the short term. In this case I'd suggest applying for accounts with First Direct/M&S bank/HSBC first, as they are more picky about who they accept so having a "cleaner" credit file for those applications may help in this regard.

Most banks will stipulate a minimum time to keep an account open after switching to them to keep the switch bonus (I know Nationwide, HSBC and NatWest do this currently), but there isn't really any length for keeping your bank account open BEFORE you use it as a donor to switch that I'm aware of.

ColdIron

bp5678 wrote: »

and can set up multiple direct debits so I'll be fine.

Are you certain about this? You're not confusing a direct debit with a standing order?

EachPenny

colsten wrote: »

You don't need any 'bad' bank, just an account you can switch. This can be an account with your existing bank. Search the forum for 'donor account'

Agreed - and I'd go further and say anyone considering doing this should forget all about there being 'good' and 'bad' banks. All banks are pretty much the same. It is crazy to ignore the benefits offered by a particular bank simply because you think it is 'bad'.

The most important thing for you to think about OP is as PRAISETHESUN says - whichever bank you use to start with, make sure it isn't one which would offer you a switching incentive to switch in as a new customer. At some point you might want to switch an account in, collect a bonus, and then switch back out. This would be a far more lucrative 'punishment' of them for being 'bad' than not doing business with them in the first place.

I used to say Barclays was a good starting point because of their lack of switching incentives. For the similar reasons I'd say Santander wouldn't be the best place to start because I think they may have some offers coming in the next year or so. :whistle:

bp5678

deadendwaterfall wrote: »

Some banks I believe yes, you do need to be with them for a certain length of time before getting the incentives but not NatWest for example.

Thanks! Do you know other banks (other than Natwest)? I will do some research myself but if you know of any off the top of your head that'll be a nice starting point.

bp5678

ColdIron wrote: »

Are you certain about this? You're not confusing a direct debit with a standing order?

I think you're right. I may be confusing the two

bp5678

EachPenny wrote: »

Agreed - and I'd go further and say anyone considering doing this should forget all about there being 'good' and 'bad' banks. All banks are pretty much the same. It is crazy to ignore the benefits offered by a particular bank simply because you think it is 'bad'.

When I said 'bad' bank, I didn't mean based on having a bad reputation. I meant they may not have any sign up perks, may not offer interest if lots of money is in there etc. For example a couple of years ago i was banking with Natwest. I found their customer service great, however there was no benefit to me being with them. I got no sign up perks, I got not interest no matter how much was in my account, no cashback etc. It was simply a place to store my money.

EachPenny wrote: »

The most important thing for you to think about OP is as PRAISETHESUN says - whichever bank you use to start with, make sure it isn't one which would offer you a switching incentive to switch in as a new customer. At some point you might want to switch an account in, collect a bonus, and then switch back out. This would be a far more lucrative 'punishment' of them for being 'bad' than not doing business with them in the first place.

Do you know of any banks that meet your description? Ie a bank I'm unlikely to want to be with later down the line.

EachPenny wrote: »

I used to say Barclays was a good starting point because of their lack of switching incentives. For the similar reasons I'd say Santander wouldn't be the best place to start because I think they may have some offers coming in the next year or so. :whistle:

Interestingly you say Barclays was a good starting point as they rarely have switching incentives. I notice you used past tense. Is this no longer the case?