Account Closures - before or after move?

MisterMotivated

Hi all,

I'm due to move house in the next 2 months. At the same time, I'm doing a bit of tidying up of my numerous bank accounts, and plan to close a couple of current accounts:

• First Direct - only held for Reg Saver and not currently worthwhile IMHO
• Tesco - on legacy T&C's, but I think they're unlikely to return to paying good rates for the foreseeable future

I thought about waiting until after I move to close the accounts, just so that they will have my (presumably still) current address should I decide to open new accounts with them in future. However, another part of me just wants to get it done and move on. I know it's a rather trivial point but I just wondered if anyone could offer any significant arguments for or against waiting to close the accounts.

colsten

I wouldn't close them. Switch them, for money. Now, or wait for a suitable switch offer to come along.

MisterMotivated

Thanks for the suggestion colsten, though I've used up every switch offer currently available. I would happily open a new donor account when the time comes (or use one of my other accounts), but I don't see that being in the next 2 years .

colsten

You'd kick yourself if the offer terms required that you've held the account for more than, say, 6 months. Your decision, obviously, but it doesn't cost to have a free dormant account sitting there.

where_are_we

"First Direct - only held for Reg Saver and not currently worthwhile IMHO"
I would disagree - £300 a month regular saver currently paying 2.75% and renew after a year - is that not worthwhile in the current climate of downward spiraling savings interest. You have done all the hard work setting it up - why chuck it?

MovingForwards

Are you in the process of buying? Or moving into rental?

If buying, with a mortgage, do not close your accounts or make any credit applications before you have the keys in your hand. Your lender could get skittish.

MisterMotivated

MovingForwards wrote: »

Are you in the process of buying? Or moving into rental?

If buying, with a mortgage, do not close your accounts or make any credit applications before you have the keys in your hand. Your lender could get skittish.

I'm buying. I know applying for credit is an obvious no-no, but I did wonder if closing accounts would have any sort of detrimental effect. Either way, I'd probably wait until after the purchase has completed, but just couldn't decide whether to update my address with these banks first (I've been staying with family the past 10 months so will still be able to receive mail, etc, at my soon-to-be-old address) or just close the accounts there and then.

I've never been a fan of First Direct tbh; any interactions I've had with them in the past didn't live up to their reputation for excellent customer service. The 5% Regular Saver was their only saving grace, but I'm not sure it's worth it for the extra ~£22.50 compared to Marcus, for example, now the rate has dropped. It doesn't help in this instance that my Regular Saver actually still has 6 months to run but may need to be closed early (thus forfeiting the interest, unlike Santander for example, who allow withdrawals mid-year) as the next most easily-accessible source of funds at my disposal. If I can get through the move without dipping into the RS funds, I'll keep it until maturity, but I'm still not keen on renewing.

18cc

When I read the title I thought it might be about the forum move next week... Not sure I like the sound of the new forum.

tryin

colsten wrote: »

You'd kick yourself if the offer terms required that you've held the account for more than, say, 6 months. Your decision, obviously, but it doesn't cost to have a free dormant account sitting there.

Has any switch offer ever had a requirement for time the accounts been open?

badger09

tryin wrote: »

Has any switch offer ever had a requirement for time the accounts been open?

No

........................

MovingForwards

MisterMotivated wrote: »

I'm buying. I know applying for credit is an obvious no-no, but I did wonder if closing accounts would have any sort of detrimental effect. Either way, I'd probably wait until after the purchase has completed, but just couldn't decide whether to update my address with these banks first (I've been staying with family the past 10 months so will still be able to receive mail, etc, at my soon-to-be-old address) or just close the accounts there and then..

I was told not to open or close anything until I have the keys in my hand, closing an account doesn't show whether it was you or the bank who did it.

Wait til you move, then do what you want.

If closing, don't bother updating the addresses as you are not gaining anything.

If using them as a switch then change your address before doing the switch.

Better safe than sorry!