Questions about opening 'burner accounts' (with view to switch to get 'switch bonuses')

Lily78_2

Hi all, 

I am trying to understand best and fastest way around opening a new bank account with view to use it to switch to one with a 'switch bonus' ( I think that is what I have seen referred to as 'burner account'?). 

I have current accounts with HSBC (advance) and First Direct and don't want to switch either of those and basically I have been missing out on the first wave of switch bonuses pre-Xmas as a results... [I got blocked when I realised these days to "switch" to a new bank and get their 'switch bonus', one need to use the automated switch service and CLOSE the original account, as it wasn't the case when I did it years ago -- and didn't think straight away of a way around it...]. 

I have read with interest the thread posted by @pecunianonolet [List of bank doing hard vs soft searches] and realised there was many things I should consider before going ahead and picking a bank at random to open 'burner account(s)'! 

So I have a few questions to you all to help me decide best way forward to open one or more 'burner' accounts so I can use it/ those to 'switch' and not miss out on those bonuses (again!). 

Given where I hold current accounts atm (HSCB and First Direct):

1.       Would you say it is easier/better if I open another current account (e.g. a 'basic' account) with either of them, or if I open one elsewhere? 
2.       What are the pros and cons? 
3.       Which would be fastest? 

 What else do I need to consider? 

Many thanks in advance!

km1500

Open an account at any bank - just ensure they are members if the switching service (CASS). 

I personally like to keep my switching accounts at a different bank from.my 'main' account but that is just me.

Santander and TSB are quick to.open online.

Katiehound

I have always opened accounts where I  already bank because you can do that online and easily but that wasn't with either HSBC or 1st Direct. (or I have had accounts where they are officially closing - like M&S and Tesco)

Not sure how either of those banks would react if you were then to switch away! but you would not need to go through identification process.

I always decline an overdraft

if given the option I decline a debit card. one less card to lose and also no need to wait for the card to arrive. You need the long number (or part of it) to complete a switch, but if you don't have a card you say so. Losing a card means you need to get a replacement.

I

anna42hmr

I've recently opened a metro account to use as a burner (as my last "burner" account i decided to keep open as a proper account) for the new Lloyds bank switch.  That was a very quick application, took less than 15 minutes to apply, and received the card had online access etc within days. I personally would choose an account with a bank no relationship with already and one that doesn't tend to do regular switch incentives in case that negatively views their scoring internally if applying again down the line if a switch offer for them comes about.   

Katiehound

Sometimes the bank concerned may let existing customers switch into an account they already hold- Lloyd & Halifax have done that so I would be wary of using them for donor accounts.

Santander seems to only allow one switch deal now.

Lily78_2

anna42hmr said:

I've recently opened a metro account to use as a burner (as my last "burner" account i decided to keep open as a proper account) for the new Lloyds bank switch.  That was a very quick application, took less than 15 minutes to apply, and received the card had online access etc within days. I personally would choose an account with a bank no relationship with already and one that doesn't tend to do regular switch incentives in case that negatively views their scoring internally if applying again down the line if a switch offer for them comes about.   

Yes I guess this was one of my 'worries' if I opened one where I currently bank, that they would see right through and that may cause some issues down the line. 

I am absolutely gutted because I have just tried to open an online account with Metro Bank and basically it wouldn't let me complete it because it seems their software wouldn't let me type my name exactly as it is on my ID (i.e. I have a " é " in my first name and that character is not allowed in the application name field, and obviously it does appear on my ID.... so app kept telling me it spotted a typo and please reenter your name exactly as in the ID, but would not let me enter it exactly as it appears. I phoned them and the lady from CS was ever so apologetic but there seem to be no way around it. It is the first time I run into such an issue (not even when I had to apply for Settle status or doing other identity check using this sort of software verification....) 

penners324

Open another account with HSBC.

It's the best option.

Rob5342

Lily78_2 said:

anna42hmr said:

I've recently opened a metro account to use as a burner (as my last "burner" account i decided to keep open as a proper account) for the new Lloyds bank switch.  That was a very quick application, took less than 15 minutes to apply, and received the card had online access etc within days. I personally would choose an account with a bank no relationship with already and one that doesn't tend to do regular switch incentives in case that negatively views their scoring internally if applying again down the line if a switch offer for them comes about.   

Yes I guess this was one of my 'worries' if I opened one where I currently bank, that they would see right through and that may cause some issues down the line.

I wouldn't worry about that, if they have your main account they are unlikely to want to close it, and even if they did you can just switch it somewhere else easily. I opened a second Halifax account and never had any problems,

Once you switch away banks may not want you back, or may have a time limit, so the best bank to get a burner account with is one you don't think you'll ever want to use. Metro, Barclays or the Co-operative bank are probably good choices as they never seem to have switching offers, and are pretty old fashioned in terms of the app.

Katiehound

when I did a switch offer with Co op they took forever,  might/ might not take as long just to open an account

Barclays certainly have had switch deals because I have done 2 to them, but not very recently.

grizzlegrizzle

Rob5342 said:

Lily78_2 said:

anna42hmr said:

I've recently opened a metro account to use as a burner (as my last "burner" account i decided to keep open as a proper account) for the new Lloyds bank switch.  That was a very quick application, took less than 15 minutes to apply, and received the card had online access etc within days. I personally would choose an account with a bank no relationship with already and one that doesn't tend to do regular switch incentives in case that negatively views their scoring internally if applying again down the line if a switch offer for them comes about.   

Yes I guess this was one of my 'worries' if I opened one where I currently bank, that they would see right through and that may cause some issues down the line.

I wouldn't worry about that, if they have your main account they are unlikely to want to close it, and even if they did you can just switch it somewhere else easily. I opened a second Halifax account and never had any problems,

Once you switch away banks may not want you back, or may have a time limit, so the best bank to get a burner account with is one you don't think you'll ever want to use. Metro, Barclays or the Co-operative bank are probably good choices as they never seem to have switching offers, and are pretty old fashioned in terms of the app.

Co-op have a great incentive running right now (referral offer though so it's not on MSE) so only open an account with them if you don't want to be eligible for that bonus.

Some people did wait ages to get their money last time and have to contact them but it was really easy for me. Family members that I referred had smooth switches too. So I wouldn't rule this out.

When you've done one switch, you usually want to do them all! 

Lily78_2

Katiehound said:

when I did a switch offer with Co op they took forever,  might/ might not take as long just to open an account

Barclays certainly have had switch deals because I have done 2 to them, but not very recently.

thanks - I have applied for their Cashminder account and according to what they "said" after I submitted it should take 3 working days for a decision and 5-6 working days for them to send DD and PIN 

I am guessing the delay is always greater when they have switch bonus offers on and many people apply. 

My application to Metro Bank backfired earlier this afternoon - something to do with their software not allowing stress accent and special characters but insisting therefore I made a typo when typing my name and it supposedly didn't match my ID (which I had to upload a picture of)... and after 3 attempts at 'correcting' they decided to reject my application... considering it is a hard check and all, I am slightly worried what consequence this will have to be honest..