Switching current accounts if you’ve only ever had one current account

elsien

If the account needs a certain amount of money paying into it each month, then you just set up a standing order to send the amount over each month and then another one to send it back where it came from.

MargeryKempe

Oh right. Thanks, that would be the ‘burner’ account you’re talking about rather than the new one that I’m going to set up via the switch?

MargeryKempe

AmityNeon said:

I wouldn't open a second account with HSBC for switching; they don't make it (as) easy to open a second current account as you have to apply in branch. (Also, opening an HSBC account now would exclude you from taking advantage of First Direct's switch offer.) I'd recommend Metro Bank or Starling if you wish to avoid another hard search, but your credit score is irrelevant as lenders cannot see it and only consider your current circumstances and credit history.

You can indeed switch a new account that has no history of incoming or outgoing payments. Never make assumptions about what can or cannot be switched; what's important are the terms of the offer. The top switch offers currently available do not require any direct debits.

• First Direct: £175 (plus £250 of interest-free overdraft subject to approval)
• NatWest/RBS: £200
• Lloyds Bank: £200 (this requires opening a fee-based account but it can be downgraded to minimise costs)

All three also offer the highest interest rates on Regular Savings Accounts if that's something you're considering in the future.

Metro Bank and Starling accounts can be opened very quickly. You will still need to wait for the corresponding debit card to arrive in the post before you can apply for a switch, as switch applications (which are usually integrated within the current account application) will ask whether the account being switched has a debit card, and if so, you must provide the debit card number.

Thanks so much this is incredibly helpful!!!

[Deleted User]

Do not switch to Barclays they are extremely strict with overdrafts.

I would suggest you open an account with RBS and then switch to it. 

phillw

I'd personally leave your hsbc current account alone.

Firstly I'd open a club lloyds account, sign up for the 6 free cinema tickets & make sure you transfer enough money in each month and then out again to avoid the monthly fee.

Then open a second lloyds account & switch it to natwest, for £200. If you open a natwest reward then put a couple of direct debits on it and pay enough money in (and then straight out again) each month and login on the app and you'll get £3 (they charge £2 from your current account and give you £5 in your reward wallet, which you can transfer across).

Unless you're planning on imminently taking out a mortgage, then I wouldn't worry about your credit file. Especially if you don't apply for overdrafts, however I do tend to apply for £500 overdrafts on each account I open as they come in handy sometimes.

Jitterywreck

I've had my main current account with barclays for 25 years. I naively switched this one for the natwest bonus (oops) however I also have a graduate account with barclays which I've held for 18 years so I could technically use that for future credit checks ? I also have a monzo account as I travel a lot and use their travel insurance product and their spending abroad. 
I'm keen to take advantage of first directs offer too, just not sure what my next move should be ?! I am confident with shifting balances as I already do this regularly anyway, but I would like to take advantage of the first direct saving incentive which is better than the natwest one (can pay more in for a start) any advice ? 

MargeryKempe

phillw said:

I'd personally leave your hsbc current account alone.

Firstly I'd open a club lloyds account, sign up for the 6 free cinema tickets & make sure you transfer enough money in each month and then out again to avoid the monthly fee.

Then open a second lloyds account & switch it to natwest, for £200. If you open a natwest reward then put a couple of direct debits on it and pay enough money in (and then straight out again) each month and login on the app and you'll get £3 (they charge £2 from your current account and give you £5 in your reward wallet, which you can transfer across).

Unless you're planning on imminently taking out a mortgage, then I wouldn't worry about your credit file. Especially if you don't apply for overdrafts, however I do tend to apply for £500 overdrafts on each account I open as they come in handy sometimes.

Thanks! This does sound a bit complex compared to what some of the others have suggested! Especially since I’ve never switched current accounts before…  On the plus side I don’t think we will try applying for a mortgage again until at least next year so hopefully that should be OK. Getting the M&S 0% credit card appeared to take 55,000years compared to any other 0% credit card balance transfer I’ve done but perhaps that was due to the current situation with interest rates?  Another thing I was going to ask (although this isn’t the correct part of the forum for that) is whether we should be OK getting one of these 0% finance deals on sofas that you can do? We’ve never done anything like that before and always had second hand sofas, but our sofa has very much died. Anyway, thanks so much all. I will leave the HSBC account alone but I might do one of the less complex strategies described, or I might just try and get my overdraft down a bit initially as suggested by one of the people who first responded to my query. Is Lloyd’s bank OK then now? I lost track of what happened to it after the government bought Lloyds TSB… the cinema tickets do sound good though, am really thankful to everyone for all their input! 

Cathy

MargeryKempe

I definitely will leave my HSBC current account alone based on what others have said and I will feel safer doing that , but I will do some opening new accounts and transferring as well, eventually! Thanks again all!

MargeryKempe

Well I’ve opened a Starling account now. I applied for an overdraft with them but they don’t want to give me one atm. Which is probably not surprising…. Should I go ahead and apply for the NatWest/RBS/first direct account or should I wait until I can transfer some money into the Starling account?

it said they would hard credit check me for the starling overdraft but I don’t see a change to my credit score as yet. My credit score went back up a bit after I was accepted the M&S 0% credit card.

Thanks all!

Cathy

MargeryKempe

Ah i see i have to wait for the Starling debit card to arrive before I can do any switch…