Switching accounts

Huggy_Bear

Morning all


I'm doing some research into switching bank accounts but my situation is not straightforward (or it maybe!)


I have been made redundant so dont currently have an incoming salary, but I have a lump sum from redundancy and plan to pay myself a salary as such. My credit history is good. Would HSBC check this if I wanted to switch to their £175 bonus Bank account. Does it matter where the £1750 per month comes from?


Thank you

eskbanker

While shunting money around to satisfy minimum monthly funding requirements is technically acceptable, HSBC are renowned for being picky about accepting applications in the first place if there isn't a large enough declarable income (paying yourself a 'salary' from your own money wouldn't count IMHO).

So, in your shoes I'd apply to a different bank instead, excluding First Direct too....

PRAISETHESUN

Technically no, it doesn't matter where the pay in comes from - as long as it is from an account external to HSBC it will meet the minimum pay in criteria. That said, as mentioned above HSBC are known for being picky and may not accept you as a customer is your income is below £1750/month so with zero income at the moment I'd probably avoid them until you have a more stable income stream.

Huggy_Bear

Thank you
Do you think it makes a difference that I have a mortage with them, again I've got good history and have not missed payment

eskbanker

Huggy_Bear wrote: »

Thank you
Do you think it makes a difference that I have a mortage with them, again I've got good history and have not missed payment

It might make a difference, but not in a positive way - if you declare during the course of a current account application that you're no longer employed and have no income, they may not be thrilled to hear this in the context of the (presumably) large debt you owe them. Do the terms of your mortgage oblige you to notify them of significant changes to your financial circumstances?

Huggy_Bear

Thanks, yes my mortgage provider is aware of my change in circumstances. When I called them they basically said as long as you keep up with repayments, it doesnt make a difference. I've come to the end of my fixed term too and seeing advisor tomorrow to switch to a better interest rate. As I already have a mortgage with them I dont need to declare my income. I've been impressed:j

tightasagnats

Re: where the money comes from each month - no, it doesn't matter - bank accounts that have a minimum pay in each month allow you to transfer it in and then out again if need be - in one go or several payments - so you could "circle" funds around if needed to meet the £1750 a month.



Unless they directly say that you need to have your salary paid in, then you don't need to - but as folks have said, not having a salary may affect your chance of getting the account.

PRAISETHESUN

Huggy_Bear wrote: »

Thanks, yes my mortgage provider is aware of my change in circumstances. When I called them they basically said as long as you keep up with repayments, it doesnt make a difference. I've come to the end of my fixed term too and seeing advisor tomorrow to switch to a better interest rate. As I already have a mortgage with them I dont need to declare my income. I've been impressed:j

Probably best then to make sure you get your mortgage sorted before making any unnecessary credit applications - HSBC will perform a credit check as a part of applying for a current account, even if you opt for no overdraft

Huggy_Bear

PRAISETHESUN wrote: »

Probably best then to make sure you get your mortgage sorted before making any unnecessary credit applications - HSBC will perform a credit check as a part of applying for a current account, even if you opt for no overdraft

That seems a sensible idea :T

loveabargain2014

Hi there. I have done a bank account switch from Clydesdale to TSB. I was referred by a friend so that hopefully we both get £100 each. I have been successful in opening my account today and have been given the account number and sort code by TSB. My question is, I have to pay in £500 within 28 days of the switch. If I paid the money in once I get my online banking activation, can I move it straight out again or does it have to stay there for any length of time? The terms don't state, only say this:
Within 28 days of the switch completing, you must have a minimum of two active Direct Debits registered on your Classic or Classic Plus account and pay at least £500 into it.
Has anyone else done this with TSB? Its my first switch!! Thanks.

soulsaver

loveabargain2014 said:

 I have to pay in £500 within 28 days of the switch. If I paid the money in once I get my online banking activation, can I move it straight out again or does it have to stay there for any length of time? The terms don't state, only say this:
Within 28 days of the switch completing, you must have a minimum of two active Direct Debits registered on your Classic or Classic Plus account and pay at least £500 into it.
Has anyone else done this with TSB? Its my first switch!! Thanks.

Yep there is no lower limit to the amount of time it stays - you can immediately move it out. 
Also note it doesn't have to be £500 in one deposit - it can be £250 in and out twice; or £100 in and out 5 times if you wish. 
Also remember Classic plus currently pays 3% interest on £1500 balances.