Do I have to switch?

flexeh

Hi All

Just wondering, I see all these "switching" deals. do you have to actually switch or is there ones where I can just open a new account and pay money in?

Thanks

Daliah

You can just open a current account without switching into it. But you won't get a bonus for just opening a current account.

Switching is a 2-step process, anyway:

1. applying for / opening a current account (unless you have one already, and the switch T&Cs allow you to use that one)
2. switching a current account from another provider into the above

You should not request a switch unless you can be certain that you have full access to the switched-into account by the time the switch completes.

You should also think twice before switching your main account. Many people switch their reserve account, even if they have to first create a reserve / donor account.

flexeh

Daliah said:

You can just open a current account without switching into it. But you won't get a bonus for just opening a current account.

Switching is a 2-step process, anyway:

1. applying for / opening a current account (unless you have one already, and the switch T&Cs allow you to use that one)
2. switching a current account from another provider into the above

You should request a switch unless you can be certain that you have full access to the switched-into account by the time the switch completes.

You should also think twice before switching your main account. Many people switch their reserve account, even if they have to first create a reserve / donor account.

I have a savings account which isnt used I may be able to convert to a current account. Would this switch have to have my wages etc go in, rather than just be a dummy account?

Ive had my CC 20 years, just dont want to lose it, even though the allure of free money is great 

blue.peter

Daliah said:

You should request a switch unless you can be certain that you have full access to the switched-into account by the time the switch completes.

I think that there might be a "not" missing from that sentence. I'd have said:

You should not request a switch unless you can be certain that you have full access to the switched-into account by the time the switch completes.

Daliah

Well spotted, thank you, corrected 

Daliah

flexeh said:

I have a savings account which isnt used I may be able to convert to a current account. Would this switch have to have my wages etc go in, rather than just be a dummy account?

Ive had my CC 20 years, just dont want to lose it, even though the allure of free money is great 

I doubt you can convert a savings account to a current account. Just apply for a new current account that you will use for switching. Often easiest to do so at your existing bank, but others do it at Monzo, Starling or Metro as they are relatively easy and quick to open. if you need any DDs for the switch, just set up a couple of annual ones for a charity or tow, or the Lottery. Many Credit Unions also support deposits by DD, so you can pay a pound or two into your own accounts. Lots of posts on the forum about 'donor' accounts, or they are also now referred to as 'burner' accounts. You just need one or two of these to get going in the switching game.

Leave your existing current account and its incoming/outgoing transactions totally untouched / unchanged.

PRAISETHESUN

The only account I'm aware of that pays money just for opening is the TSB cashback offer via Quidco (https://www.quidco.com/tsb-spend-save-current-account/). I took advantage of it a while back but there were lots of reports at the time of people saying Quidco were refusing to pay out for meeting all the terms, so keep it mind the cashback isn't guaranteed until it is actually paid into your current account.

Otherwise as outlined above, most offers require you to actually switch a current account using the CASS. It's easy enough to open a second account with your main bank and use this as a donor/burner account to take advantage of switch offers.

B0bbyEwing

I find some people get the terms current accounts, savings accounts & investing all mixed up & they'll refer to one when they mean another. Same with direct debits & standing orders - some will just call everything a direct debit.

If you can't be bothered (I don't mean that in a nasty sense - some people just aren't interested in jumping a hurdle, no matter how easy, to get a deal) then sure you can just open a bog standard current account.

But you potentially throw away joining payouts. Various numbers get put forward, £150, £175, £100. Depends what the bank offers you to switch. 

My main current account that my wages goes in to is with HSBC. All my direct debits & standing orders are with them. I wont switch that.

However.

I have a current account with TSB also, sat there doing absolutely nothing. If one of these switching offers comes up that I'm eligible for (unlikely now as I think I've rinsed most of the main banks) then this is the account I will choose to switch.

SOME times it's straight forward - just switch it.

Other times you need to bring a set number (often 2) of direct debits over. Other times you can switch but then you need to set up 2 direct debits within a certain timeframe and/or credit with an amount within a certain timeframe (different hurdles to jump that aren't that hard but depends if you're bothered to do it).

Some people will have dummy direct debits set up on a donor current account (such as paying in to their own savings account £1/month) so that it's good to go should a switch come up that requires direct debits for the offer - there's no wait time setting direct debits up then.

So it depends what you want & how much work you're willing to put in. 

Hope it helps somewhat.

Bridlington1

I believe you can get £20 for opening a first direct account but it is very easy to just open a spare account and switch that to first direct to get the £175.

A new current account can be opened in a minute or two if you open a second account with one of your existing banks and direct debits can be set up easily enough. You can keep your main current account almost separate from the rest of your accounts if you wish. If you've had your current account for 20 years it would be wise to keep it for the sake of improving your credit report anyway, even if you barely use it.