Switching Current Accounts

SanVSin

I am looking to switch current accounts to take advantage of better offers elsewhere. I currently bank with Nationwide, have a current account, savings account and personal loan from them. Does anyone know whether there is a penalty/punishment - such as being made to pay off the loan immediately - for switching current account while having a loan via my current bank? 

I can't find anything in the T's and C's about this but I wasn't sure if anybody has been stung by this before. 

jonesMUFCforever

The transfer of your current account should not affect any borrowing.
The only caveat I would add is some banks insist on repayments coming from an account with the same bank.
I don't think Nationwide do this but check your loan documents.

colsten

Ask Nationwide before you make a move.

Poet100

I recently applied for a bank switch to HSBC in order to take advantage of the £125 on offer.  The switch has not yet happened and I’d taking well over the seven days that was expected.  HSBC £125 switch bonus does not appear to be on offer now.  So, if the offer has now been pulled, will I still get my £125 as I first applied when the offer was active, even though they have not processed the switch yet?

Robin9

It can take up to 30 days to be credited once the switch is complete.

Zanderman

Poet100 said:

I recently applied for a bank switch to HSBC in order to take advantage of the £125 on offer.  The switch has not yet happened and I’d taking well over the seven days that was expected.  HSBC £125 switch bonus does not appear to be on offer now.  So, if the offer has now been pulled, will I still get my £125 as I first applied when the offer was active, even though they have not processed the switch yet?

The switch will take 7 days.  The start date of that 7 days will depend on how quickly the new account was opened (can't start a switch until the new account is up and running) and on what date they gave you/you agreed to when setting up the switch.  So you should have a record of when the switch starts and is due to end.  Has that date been and gone?

Poet100

Thanks for the replies, I didn’t realise the the seven days started once you’ve uploaded all the requirements for ID and income check. I’m not sure if HSBC has pulled the cashback offer or not?  It was active on my first request to switch.

Zanderman

Poet100 said:

Thanks for the replies, I didn’t realise the the seven days started once you’ve uploaded all the requirements for ID and income check. I’m not sure if HSBC has pulled the cashback offer or not?  It was active on my first request to switch.

The switch and the seven days have absolutely nothing to do with ID and income checks. Those checks are to do with opening the account.

The switch is an entirely separate process to opening the account.  But it cannot start until the account is open.

You should have, as I said in my earlier post, agreed dates for the switch to start and finish. This will be in the communications you've had - so you should be able to tell when the switch is due to happen. It shouldn't be a mystery.  If it is (a mystery) then I would check that you have actually asked for a switch and not merely opened an account!

Re the cashback offer, if that was live when you requested the switch then, probably, you're eligible.

Poet100

Zanderman said:

Poet100 said:

I recently applied for a bank switch to HSBC in order to take advantage of the £125 on offer.  The switch has not yet happened and I’d taking well over the seven days that was expected.  HSBC £125 switch bonus does not appear to be on offer now.  So, if the offer has now been pulled, will I still get my £125 as I first applied when the offer was active, even though they have not processed the switch yet?

The switch will take 7 days.  The start date of that 7 days will depend on how quickly the new account was opened (can't start a switch until the new account is up and running) and on what date they gave you/you agreed to when setting up the switch.  So you should have a record of when the switch starts and is due to end.  Has that date been and gone?

Thanks for the information.  I was given a selection of dates, and I chose 11/11/20.  After a a few days I got a text message saying that my chosen date was not going to be met because of high demand (and staff shortages). I was told it would take longer, I received another text some days later saying that my “documents have been received” and they are dealing with the application. I’m still waiting.