Switching bank accounts

Be_True_To_Yourself

HI All

What are  both the positives and negatives  for switching ?How often can You do it? I wont be applying for a Mortgage /Credit etc so I  don't need to worry about My credit score.

Many thanks.

JohnTheSkier

Positives - free switching bribes, potentially an account with more/better features/rewards, potentially better service, or a more local branch. Others depending on your point of view.

Negatives - hard credit search might affect your ability to get credit for a few months. Might lose access to current/future loyalty or current account holder only accounts - as on the whole high street banks don't offer the best saving rates, this isn't necessarily a large risk.

Band7

Don't switch your main account. Apart from it possibly disrupting your financial transactions, you lose what's probably your longest standing account. Even if you don't need any credit now, it might not look good on your credit files.

Set up a donor/burner account, specifically for switching. If you need DDs, set up some small new ones. Lottery, Paypal, Charities etc are all options.

Rob5342

Band7 said:

Don't switch your main account. Apart from it possibly disrupting your financial transactions, you lose what's probably your longest standing account. Even if you don't need any credit now, it might not look good on your credit files.

Set up a donor/burner account, specifically for switching. If you need DDs, set up some small new ones. Lottery, Paypal, Charities etc are all options.

You should make sure your main account is the best one you can get as you use it daily. Switching your main accoint to a modern bank like Starling or Monzo so you get a decent app is quite sensible.

It's always a good idea to have at least two current accounts in case any of the banks have problems or your debit card stops working. I have a Monzo one for my main accoumt, a Starling account I do my DMP payments through, and an old Halifax account so I have a second payment card (there's no money in it but the overdraft facility is big enough for emergency use). The Starling and Halifax accounts also let me pay in cash at a Post Office or cheques in the app on the very rare occasion I need to do that.

You can switch whenever a bank lets you open a new account. Banks might have a time limit from switching away to opening a new account, so be careful about switching away from one you might want to go back to.

Alex9384

Rob5342 said:

... and an old Halifax account so I have a second payment card (there's no money in it but the overdraft facility is big enough for emergency use).

Bear in mind that your overdraft facility may be slashed if you don't use the account too much.
Mine (Halifax) was reduced from 1300 to 250 because "it seems like you haven't used your overdraft" or something like that, don't remember the exact wording. On my other accounts with overdrafts I sometimes dip into the OD on purpose (90% or more) and then repay it on the same day so I don't pay any interest. Maybe their algorithms then see it as OD being used.

I've seen other forum members saying that overdrafts are intended for accounts with regular monthly pay-in, so I would set up some monthly standing order from your other account to Halifax, and then from Halifax back to Monzo after 2-3 days.