Close unused Monzo account or not?

Legacy_user

I've just changed over from Monzo to Starling and moved all my money over as I believe Starling is a better product for me in this instance.

I know that we should leave credit card accounts open (within reason).
Does this apply to a Monzo account also? Should I leave it open? will it help slightly my credit worthiness profile as seen by future lenders or not at all?

If it doesn't help i'd rather close it just for ease and cleanliness of accounts.

[Deleted User]

Keep it open as a donor account for a switch incentive.

Or switch it to HSBC now for the £175 incentive?

System

!!! wrote: »

Keep it open as a donor account for a switch incentive.

Or switch it to HSBC now for the £175 incentive?

Hmmm, is it that easy? I have no direct debits, wages or standing orders to it, it's just a holiday / travel / sort of savings account. Don't HSBC require certain criteria (direct debits) for it to count.

DCFC79

beany_bot wrote: »

Hmmm, is it that easy? I have no direct debits, wages or standing orders to it, it's just a holiday / travel / sort of savings account. Don't HSBC require certain criteria (direct debits) for it to count.

Have a look if there are certain requirements.
Or use it as a donor account for another bank account giving a new customer bonus.

System

They all seem to have criteria such as

"Have at least two direct debits/standing orders
Pay in at least £1,750 a month or £10,500 over six months, excluding internal transfers
Switch via the Current Account Switch Service (CASS)"

So will Monzo help credit file?

[Deleted User]

Yes it requires you to switch 2 standing orders or DD’s along with it.

You could setup some dummy Standing Orders or DD’s (PayPal, Credit Card etc).

For the HSBC account the bonus is paid after the first 30 days and you’ve paid £1750 in (which you could immediately transfer back out again).

If you don’t continue to pay £1750 in they will simply downgrade the account to a standard current account.

System

Not sure I can bothered going through the palava, however big or small or switching. It's not an account I need or will use.

[Deleted User]

I’m guessing it’s not been open long?

Keep it. And maybe keep some funds in it.

You never know when your main account could become inaccessible for any reasons

System

I've had it a year or so. I guess I could just keep it open ad forget about it, but I have several accounts (and now starling).

PRAISETHESUN

@OP my advice to you would be that if you don't want the hassle of managing multiple accounts then close your Monzo account and forget about it. That said there is good money to be made playing the current account switching game, it just requires a few hoops to jump through and a little bit of time and effort.

Lenders like to see stability so keeping your accounts open for longer period of time can help demonstrate this, but this effect is likely to be minimal for your Monzo account since it is not a credit account (unless you have an arranged overdraft). Also keep in mind that if you plan to play the current account game then each time you apply for an account there will be a hard credit search left on your file - too many of these in a short period of time (3-6 months usually) can be seen in bad light by lenders and will hurt your ability to get credit. Something to keep in mind if you are worried about an imminent mortgage/credit card application.

onwards&upwards

beany_bot wrote: »

Not sure I can bothered going through the palava, however big or small or switching. It's not an account I need or will use.

I said more or less the same thing on here a few months ago.

Since then i’ve gained £150 from HSBC, £100 from First Direct and £50 from Halifax (with another £85 to come at the 6 month mark).

I also make £6 a month from Halifax and co-op reward schemes.

Doesn’t sound like much but if that’s all I do this year that’s £457 for very little work. I just have standing orders bouncing the same money around all the accounts once a month, very little input needed from me.

It’s worth considering! A Monzo account you aren’t using is a perfect one to switch.