Closing 10+ year old bank account

vignezh

Thanks in advance for all the suggestions.
I have been banking with HSBC for 10+ years and recently opened a Natwest account. I find that the Natwest app has budgeting features which is very useful, which HSBC doesn't. I would like to move all my DD to Natwest. One way to do this is to request a bank account switch which will close my HSBC account. As it is an old account, I would like to keep it and just move all the DD to Natwest. 

1. I would like to know what the easiest way to transfer all the direct debits to Natwest.
2. Is it ok to close my HSBC account. 
3. If I use the switch service and close HSBC, any future incoming payments, domestic or international (to HSBC) will automatically be transferred to my Natwest. Is this correct?

bradders1983

1 - the switching service will do this for you
2 - Why wouldnt it be? Do you owe them money?
3 -Yes

vignezh

bradders1983 said:

1 - the switching service will do this for you
2 - Why wouldnt it be? Do you owe them money?
3 -Yes

I do not owe them anything, I was under the impression that closing older account could adversely affect your credit status?

bradders1983

Ignore the made-up 3 digit scores the credit reference agencies give you. Lenders dont see them, and a lender wont give a stuff that you have closed one current account to open another. If anything it could actually help if you were deep into an overdraft with the old one and you dont use the new one.

These boards seem to be full of people obsessed with the made up score going up and down 5 points a month, please dont be one of them

colsten

Your account history for closed accounts will still be kept on your credit reference files for the last 6 rolling years, so any lender can see how well or otherwise you have been managing closed accounts. You can check for free what your records say, see https://www.moneysavingexpert.com/loans/check-free-credit-report/

Katiehound

Having held the same bank account for years may well be good for your credit. So is having CCs that are paid in full.
If possible I would downgrade the HSBC (if necc) so that you don't have to pay bank charges and then just move the DDs yourself.
In theory all incoming payments would be redirected from HSBC but if it's a salary I would contact your employer.
If you are going to switch the account you may as well wait for a switch incentive

whitesmith

The easiest way to switch all the direct debits to your new account is to either call up the various companies or do it online one at a time and input your new bank details. It's a bit of a hassle but basically nothing difficult.

make sure you don't do it too close to the direct debit date

Once you have done this you can close your old account but of course any payments into it will get bounced back to the sender

if you use the switch service payments will on the other hand be sent onwards to your new account

stclair

You can make what's called a partial switch to a new current account, but this isn't covered by the Current Account Switch Guarantee. It also takes longer than 7 working days. You'll need to arrange for credit payments to be transferred in to your new account yourself.

md258

I would keep the HSBC account open and with £100 in it so that you have more than 1 current account. If there is a problem with Natwest (as there are occasionally with all banks), you could easily find yourself without a working card.

As for moving the DDs over, to keep the old account open, you'd have to either do a partial switch or move everything across yourself. It shouldn't take more than a couple of hours to do the latter and you'd also be able to cancel anything that you have forgotten you're paying for.

[Deleted User]

Always advisable to keep at least 2 totally separate (i.e. different organisations/banking groups)
Most places allow you to update your DD details online and you could update salary/pension details too.

Sharon87

I would definitely keep your HSBC bank account open, whenever I apply for credit it sometimes asks me how long I've had my bank account for. I use my oldest bank account to show credit stability. It has nothing to do with the 'magic credit score'. But it's a good indicator you're credit trust worthy, which would be helpful if you ever want credit like a mortgage in the future. Keeping HSBC account open could also give you good savings accounts - like their regular saver which has a very high interest rate (mine is 2.75% - opened about 6 months ago).

I would just manually change your direct debits, it's the safest way without closing your bank account down and you can control when it changes.