How bad is it to close a brand-new account and switch to another??

andrea1983

Hi everyone,

I recently opened an NS&I Income Bond account since I wanted to use that to save some extra money I got on the side.

Till last month that account was the one who gave the best rate of interests on savings but they just announced a big drop in interests in November so I'm now wondering if moving my saving into a new account would be a good idea.

How bad would that appear to close a just-opened account? Would that damage my credit score? Is there anything "bad" that I should be aware of by jumping from account to account?

Thanks in advance for taking the time to help clarify my doubts!!

 

ColdIron

Savings accounts do not affect your credit rating/score. At 0.01% I would dump it sharpish

greatcrested

ColdIron said:

Savings accounts do not affect your credit rating/score. At 0.01% I would dump it sharpish

No need to be sharpish - the rate does not drop till November (though finding an alternative will get harder and harder as time goes on....)

MaxiRobriguez

Absolutely fine - I have twice ditched a bank account within weeks because it didn't suit me anymore. 

NottinghamKnight

Savings account have no impact, current accounts may have some impact but I believe far less than £100 for each one as required for the range of switching incentives now available.

ratechaser

My income bonds account lasted 2 weeks from open to close. Which is still longer than several of my 'donor' current accounts from a few years back when I was carpetbagging all those switching bonuses. Not caused me any issues...

surreysaver

I applied to switch my child's Junior ISA to NS&I. I sent of the signatory form before I received the email about the interest rate reduction.
I contacted Halifax to instruct them to abandon the transfer, after unsuccessfully attempting to contact NS&I.
I don't feel bad about it at all 

Moe_The_Bartender

Why worry? Savings accounts nowadays are simply somewhere to park you cash until you need it. For the miserable rates on offer, it’s not worth the effort.

John464

The only thing thats bad here is the Government keep U turning and swinging from one extreme to the other.
By switching from a top rate to the worst rate at a stroke its them who is messing us about.

Shedman

Open a Direct Saver, transfer a £1 to it from the Income Bonds and then close the Income Bond.  That way you'll still keep a current presence with NS&I which might come in handy some time down the track if they revise their rates upwards (to replace all the money that must be flowing out at the moment...)

John464

Shedman said:

Open a Direct Saver, transfer a £1 to it from the Income Bonds and then close the Income Bond.  That way you'll still keep a current presence with NS&I which might come in handy some time down the track if they revise their rates upwards (to replace all the money that must be flowing out at the moment...)

I thought the minimum transfer is £500 - the price of one bond