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

Band7

pridehappy said:

Switching today is really easy and all banks will assist you in the process. All you really need to do is apply online for a new current account, provide the details of your old bank while applying and everything will be switched for you, and there's a guarantee that if something goes wrong, your money is safe. Everything is nearly transferred for you, apart from your debit card purchases and an overdraft.

Setting up an overdraft is easy, just contact your new bank and most are quick at setting it up. Plus, you'll get an incentive for switching sometimes and ideally a better banking offer.

In terms of the effect on your credit score, it's usually minimal and after a year or two will be nearly non-existent as long as you keep up good credit habits.

In terms of banks to switch to, I've heard quite a few bad stories about RBS and the quality results are worse than HSBC, so I'd suggest Virgin Money or Nationwide. 

Virgin Money has a better product though and I'd only really recommend Nationwide for the 'second best' option. Although Virgin Money don't get as good service ratings as some of the others, I've never had a problem and find their service really friendly and products fair, overdrafts are a lot lower than all the other banks too.

I would add that people should think twice about switching their main bank account. All banks are much of a muchness. It is easy enough to set up one or more burner/donor accounts and switch those.

In any case, however, I would very strongly recommend to only request a switch after the target account is fully operational - i.e. you have online/app access, a debit card and if required, a card reader. You do not have to request the switch as part of the application for the target account.

dealyboy

Band7 said:

pridehappy said:

Switching today is really easy and all banks will assist you in the process. All you really need to do is apply online for a new current account, provide the details of your old bank while applying and everything will be switched for you, and there's a guarantee that if something goes wrong, your money is safe. Everything is nearly transferred for you, apart from your debit card purchases and an overdraft.

Setting up an overdraft is easy, just contact your new bank and most are quick at setting it up. Plus, you'll get an incentive for switching sometimes and ideally a better banking offer.

In terms of the effect on your credit score, it's usually minimal and after a year or two will be nearly non-existent as long as you keep up good credit habits.

In terms of banks to switch to, I've heard quite a few bad stories about RBS and the quality results are worse than HSBC, so I'd suggest Virgin Money or Nationwide. 

Virgin Money has a better product though and I'd only really recommend Nationwide for the 'second best' option. Although Virgin Money don't get as good service ratings as some of the others, I've never had a problem and find their service really friendly and products fair, overdrafts are a lot lower than all the other banks too.

I would add that people should think twice about switching their main bank account. All banks are much of a muchness. It is easy enough to set up one or more burner/donor accounts and switch those.

In any case, however, I would very strongly recommend to only request a switch after the target account is fully operational - i.e. you have online/app access, a debit card and if required, a card reader. You do not have to request the switch as part of the application for the target account.

... very good advice here if you are switching your main account.

As you have probably noticed there is an ongoing thread with a switch problem ... sure that person will be protected eventually.

flaneurs_lobster

Band7 said:

In any case, however, I would very strongly recommend to only request a switch after the target account is fully operational - i.e. you have online/app access, a debit card and if required, a card reader. You do not have to request the switch as part of the application for the target account.

Good advice usually, although it should be noted that the current RBS/NatWest/Ulster switch offer T&Cs state that the switch should be requested at the time of the application (if the switch-to account was not open before the offer started).

MargeryKempe

Thanks all! I’ve now opened a standard Lloyds current account (not a club Lloyds) but I haven’t received any debit cards for any accounts. I am not going to be switching my main account as most people have suggested I shouldn’t. When I applied for Lloyds it asked me what I was planning to do with the account. I wasn’t sure what to say, will they hold
me to whatever I said? I think I said I was going to used it to pay bills and I possibly said I was going to transfer some money into it regularly (which I’m actually not planning to) does this matter? I already have a Virgin money credit card but I don’t have any other account with them. There seem to be a lot of other possible accounts I could be opening. I think I will use the starling account as a day to day spending account and a way to help pay back my HSBC overdraft.

MargeryKempe

I also found this : https://www.hsbc.co.uk/help/money-worries/overdraft-support/ I applied for the free 12 months 0% overdraft the other day but the HSBC online chat person said they could find no record of my application and I didn’t receive any emails or anything so not sure if I should try applying for it again?

Bridlington1

MargeryKempe said:

Thanks all! I’ve now opened a standard Lloyds current account (not a club Lloyds) but I haven’t received any debit cards for any accounts. I am not going to be switching my main account as most people have suggested I shouldn’t. When I applied for Lloyds it asked me what I was planning to do with the account. I wasn’t sure what to say, will they hold
me to whatever I said? I think I said I was going to used it to pay bills and I possibly said I was going to transfer some money into it regularly (which I’m actually not planning to) does this matter? I already have a Virgin money credit card but I don’t have any other account with them. There seem to be a lot of other possible accounts I could be opening. I think I will use the starling account as a day to day spending account and a way to help pay back my HSBC overdraft.

You can view your Lloyds debit card details in the app so do not need to wait for the debit card to arrive.

MargeryKempe

Oh right. Someone said that about the starling one and I couldn’t see those…

Bridlington1

MargeryKempe said:

I also found this : https://www.hsbc.co.uk/help/money-worries/overdraft-support/ I applied for the free 12 months 0% overdraft the other day but the HSBC online chat person said they could find no record of my application and I didn’t receive any emails or anything so not sure if I should try applying for it again?

Go for it. I would say get hold of any 0% overdraft you can, max it out and use the money to pay off your HSBC overdraft, then save some money aside in a high interest account and repay the overdraft once the interest free period ends.

MargeryKempe

Hi all, I’ve now got the first direct account with the free overdraft. I switched my ‘dummy’ Lloyds account into it successfully (although it had no money in it). I’ve now just transferred the £1000 into the fd account. How long do i need to leave it in there? Also how long before I get the £175 bonus?   I am thinking of switching my main HSBC current account fully over to first direct as I am not having any success at paying off my overdraft yet as all my usual monthly transactions are still coming out of my HSBC, and I’m not treating it like a debt that needs to be paid off. If I switch fully to fd will it leave my HSBC account open as I still want to use it?

i think the Lloyds account is still open after doing the switch from there but just double checking. Also some of you said earlier not to switch my main account!

thanks

M

WillPS

MargeryKempe said:

Hi all, I’ve now got the first direct account with the free overdraft. I switched my ‘dummy’ Lloyds account into it successfully (although it had no money in it). I’ve now just transferred the £1000 into the fd account. How long do i need to leave it in there? Also how long before I get the £175 bonus?   I am thinking of switching my main HSBC current account fully over to first direct as I am not having any success at paying off my overdraft yet as all my usual monthly transactions are still coming out of my HSBC, and I’m not treating it like a debt that needs to be paid off. If I switch fully to fd will it leave my HSBC account open as I still want to use it?

i think the Lloyds account is still open after doing the switch from there but just double checking. Also some of you said earlier not to switch my main account!

thanks

M

The £1000 can be removed immediately, it only needs to be deposited not left in the account.

Money will be paid within 28 days of all criteria being met.

If you additionally switch the HSBC account then that account will be closed. You can either do a partial switch (which is not guaranteed in the same way a full CASS switch is) or you can just move the payments manually (which is what I'd do personally).