Should I switch bank accounts?

simonp

I've been an HSBC personal banking customer forever (since university - about 20 years). I hate HSBC. They're horrible to deal with. Everything has to be done over the phone or even worse, in a branch (I live in remote rural Wales now so visiting a branch is hard work).

I recently opened a new Starling Bank account for a small business I'm setting up and I'm really impressed with how easy everything is. All online or app-based. Easy to speak to support (albeit online - which I'm ok with).

So is now the time to switch from HSBC to a 'modern' bank? The only reason I've stayed so long as the history with the bank. This doesn't seem to be a valid reason any more.

Or is this a case of the grass is always greener and are all banks as bad as each other?

Zanderman

You've answered your own question. 

You hate HSBC.

You're impressed with Starling. 

So you know all banks aren't the same. 

You have nothing to lose by opening another account by switching.

Or if you want to try another bank but don't want to leave HSBC yet (for perhaps that history reason, potentially useful) just hedge your bets, open another account somewhere else, you're not restricted to one!

Daliah

Getting rid of your oldest, most long standing account will have a slightly detrimental effect on your credit worthiness. This may or may not concern you.

An online-only bank like Starling will eliminate the need for branch visits. But I would not hold both, my business and my personal account with the same bank. I would also not rely on a single personal account. Something can go wrong with any bank at any point, so having a backup is a good idea.

It is easy to manually switch your personal current account, and to keep your existing one:

1. open the new account
2. use faster payment to transfer some or all of your balance to the new account (careful about existing SOs and DDs, have enough money to pay for them in whatever account they will debit)
3. set up your SOs on the new account; delete your SOs from the old account
4. give your payees that you pay by DD the new sort code and account number. Many allow you to do this online
5. if you get incoming payments, give the payers your new account details
6. keep the old account in a semi-dormant state, do most of your banking with the new account

As you already have your business account with Starling, you could have a look at Monzo for your personal account. Chase UK might be another alternative but they do not do DDs right now; under no circumstance use Revolut, as they are not a bank and have a terrible CS reputation. Lots of other options for traditional banks, all of whom can be operated online. My favourites include Halifax and Natwest as they have great apps. I can't comment on their CS as I have never had reason to contact them.
 

datlex

You might want to open a second account as well either a bank with a local branch or one you can use at the post office.  Why not try somewhere like Nationwide, Lloyds or any of the others with switching offers.

Sensory

Banks are definitely not all the same. There are numerous aspects to banking and since the advent of smartphones with biometric security, the new digital banks are innovating (along with fintech companies) and the traditional banks are playing catchup.

There is no need to actually switch accounts, especially not one you’ve possessed for 20 years. Having multiple current accounts across different financial institutions gives you flexibility and a safety net against downtime, and many accounts come with free benefits such as competitive interest rates, cashback, rewards and subscription offers.

General_Grant

simonp said:

I've been an HSBC personal banking customer forever (since university - about 20 years). I hate HSBC. They're horrible to deal with. Everything has to be done over the phone or even worse, in a branch (I live in remote rural Wales now so visiting a branch is hard work).

. . .

Strange - I've been with HSBC for about three years now and, other than an initial visit to a branch to pick up a gismo to provide codes, I have only dealt with them online and never by phone.

jimjames

If you are looking to switch there are a few offers where you can earn £100 plus for doing so which may or may not be of interest

Katiehound

Just open a new a/c with either HSBC or another bank and groom that for a switch deal. I would imagine that HSBC would be the easiest option for a second account. 

Once it is up and running transfer most of your finances there and get ready for a switch with a bonus.
Or switch and then see how the new bank compares before giving it all your dosh.

I would hold onto the 'old' HSBC account as it would prove some stability- you only need to leave a small amount in there to keep it ticking over.

It is not wise to have your accounts with just one or two providers in case there is a blip in their system which denies access to your funds.