Switching for the first time

tarich_23

I'm looking to open a First Direct account - essentially for the 7% savings and thought I'd do a part switch but think I misunderstood how they actually work! I currently have a joint account with my husband with Natwest and have the reward account. We essentially get £5 a month for just paying our direct debits with them. I thought I could do a part switch by setting up the new account with just my husbands second job wage going in to the First Direct account and leaving my direct debits alone. I now realise I can't but have read on here about a dummy account. So if I set up a random account with stirling, for example, pay in the £1000 then start the First Direct switch would this work? Would there need to be a direct debit set up too?

eskbanker

It's viable to use a dummy burner account to switch from, so, yes, that'll be best if you don't want to commit to a full CASS switch from your existing account.  The golden rule with switching is to read the offer terms, so if they don't mention any direct debits needing to be switched, then you don't need to have any....

gary1312

tarich_23 said:

I'm looking to open a First Direct account - essentially for the 7% savings and thought I'd do a part switch but think I misunderstood how they actually work! I currently have a joint account with my husband with Natwest and have the reward account. We essentially get £5 a month for just paying our direct debits with them. I thought I could do a part switch by setting up the new account with just my husbands second job wage going in to the First Direct account and leaving my direct debits alone. I now realise I can't but have read on here about a dummy account. So if I set up a random account with stirling, for example, pay in the £1000 then start the First Direct switch would this work? Would there need to be a direct debit set up too?

No DDs are needed for the First Direct switch offer. Look at the banks who allow you to apply for their Basic accounts directly and open one as your dummy account, that way you're not getting another credit search. Santander and Co-op are both good options for this.

Middle_of_the_Road

gary1312 said:

tarich_23 said:

I'm looking to open a First Direct account - essentially for the 7% savings and thought I'd do a part switch but think I misunderstood how they actually work! I currently have a joint account with my husband with Natwest and have the reward account. We essentially get £5 a month for just paying our direct debits with them. I thought I could do a part switch by setting up the new account with just my husbands second job wage going in to the First Direct account and leaving my direct debits alone. I now realise I can't but have read on here about a dummy account. So if I set up a random account with stirling, for example, pay in the £1000 then start the First Direct switch would this work? Would there need to be a direct debit set up too?

No DDs are needed for the First Direct switch offer. Look at the banks who allow you to apply for their Basic accounts directly and open one as your dummy account, that way you're not getting another credit search. Santander and Co-op are both good options for this.

As you are with Natwest, you could easily open a select account in your name, and switch that to FD.
No need to have the £1000 deposited before the switch, just pay it into FD after the switch. No direct debits required for this offer.

gary1312

Middle_of_the_Road said:

gary1312 said:

tarich_23 said:

I'm looking to open a First Direct account - essentially for the 7% savings and thought I'd do a part switch but think I misunderstood how they actually work! I currently have a joint account with my husband with Natwest and have the reward account. We essentially get £5 a month for just paying our direct debits with them. I thought I could do a part switch by setting up the new account with just my husbands second job wage going in to the First Direct account and leaving my direct debits alone. I now realise I can't but have read on here about a dummy account. So if I set up a random account with stirling, for example, pay in the £1000 then start the First Direct switch would this work? Would there need to be a direct debit set up too?

No DDs are needed for the First Direct switch offer. Look at the banks who allow you to apply for their Basic accounts directly and open one as your dummy account, that way you're not getting another credit search. Santander and Co-op are both good options for this.

As you are with Natwest, you could easily open a select account in your name, and switch that to FD.
No need to have the £1000 deposited before the switch, just pay it into FD after the switch. No direct debits required for this offer.

I'd caution against using banks with whom you want to maintain a long-term relationship as sources of burner accounts. Plus the OP would still be fully credit checked for a Select account despite already being a NatWest customer. Opening a basic account would (afaik and happy to be corrected) be a soft check only.

flaneurs_lobster

gary1312 said:

I'd caution against using banks with whom you want to maintain a long-term relationship as sources of burner accounts. Plus the OP would still be fully credit checked for a Select account despite already being a NatWest customer. Opening a basic account would (afaik and happy to be corrected) be a soft check only.

NatWest use the term "basic account" to describe both their Select account (hard search) and their Foundation account (can't apply for, offered if you don't qualify for other accounts, no search?).

gary1312

flaneurs_lobster said:

gary1312 said:

I'd caution against using banks with whom you want to maintain a long-term relationship as sources of burner accounts. Plus the OP would still be fully credit checked for a Select account despite already being a NatWest customer. Opening a basic account would (afaik and happy to be corrected) be a soft check only.

NatWest use the term "basic account" to describe both their Select account (hard search) and their Foundation account (can't apply for, offered if you don't qualify for other accounts, no search?).

Which is confusing. Nevertheless, my advice to the OP was to open a basic account with another provider. 

ericthesanddune

I have three direct debits in my burner account to take into account some t&c’s for switching.. it’s not difficult, just remember to pay into it to cover them at the end of the month.. it’s no hassle  

tarich_23

gary1312 said:

tarich_23 said:

I'm looking to open a First Direct account - essentially for the 7% savings and thought I'd do a part switch but think I misunderstood how they actually work! I currently have a joint account with my husband with Natwest and have the reward account. We essentially get £5 a month for just paying our direct debits with them. I thought I could do a part switch by setting up the new account with just my husbands second job wage going in to the First Direct account and leaving my direct debits alone. I now realise I can't but have read on here about a dummy account. So if I set up a random account with stirling, for example, pay in the £1000 then start the First Direct switch would this work? Would there need to be a direct debit set up too?

No DDs are needed for the First Direct switch offer. Look at the banks who allow you to apply for their Basic accounts directly and open one as your dummy account, that way you're not getting another credit search. Santander and Co-op are both good options for this.

I've opened a basic santander account and will use that. Thanks