Changing current account

kjmpde

I see that banks are offering money to attract new customers. I understand that banks will continue with direct debits etc but I don't see any information on who tells the employer or pension provider to pay money into the new bank. How does that work? Has anybody had problems with employers thinking that there's something dodgy if the person changes bank a few times a year? 

eskbanker

kjmpde said:

I don't see any information on who tells the employer or pension provider to pay money into the new bank. How does that work?

https://www.currentaccountswitch.co.uk/help-support/

Q. What happens to payments that people send to my old account?

A. All incoming and outgoing payments will be automatically redirected to your new account. Each time a payment is redirected, an automatic message is sent back to the originator advising them of your new account details so they can update their records. Some organisations may contact you directly to confirm your details have changed. If you do not want your new details to be given to someone who sends a one-off payment, contact your new bank.

TheBanker

kjmpde said:

I see that banks are offering money to attract new customers. I understand that banks will continue with direct debits etc but I don't see any information on who tells the employer or pension provider to pay money into the new bank. How does that work? Has anybody had problems with employers thinking that there's something dodgy if the person changes bank a few times a year? 

Personally I wouldn't change my main current account several times a year - even though the credits are automatically forwarded I think there's too much potential for things to go wrong.

What some people do is open a second current account, set up the required number of direct debits and switch that to gain the incentive. If doing this make sure your second account meets all the criteria - the switch offer may need a certain number of direct debits, or need you to pay in a certain amount. Read the terms carefully.

If, when the account is switched, you like the new bank, you can always do another switch to move your direct debits and wages (you won't get more cashback for this switch). Or you could move them manually. That way you get to experience the new bank's service and app (and receive the bounty) without actually moving everything over. If you decide you like the new bank, it can become your main account. If you don't like the new bank, you carry on using your old account and switch the new one somewhere else. 

Bridlington1

I once changed the bank account my wages are paid into twice in one calendar month and have never run into any issues with my employer thinking there was something dodgy about me or anything like that.

I would agree with the above posts though, if I were you I'd switch a donor account to take advantage of the switching offers. As a rule of thumb I would also avoid closing my oldest current account in order to preserve some longevity to your credit report, even if the account just ends up sat there with very little activity on it. 

Also for accounts that require you to switch however many direct debits there are a few savings/investment accounts that let you make deposits by direct debit so you don't need to go moving direct debits from your main current account to the donor account. See:
https://forums.moneysavingexpert.com/discussion/6445857/savings-investment-dds-and-debit-card-deposits-an-updated-list/p1

km1500

Yes I would echo the above comments

Have a 'main' current account that you never switch. Have you salary etc paid into it, direct debits take out of it.

Open one or more other accounts that you use for switching around.

Rob5342

As mentioned above it's usually advisable to keep your main banking with one bank and have a separate account with a couple of direct debits set up that you switch around banks to get the switching bonuses. My wife and I have our main accounts with Monzo as the app is so good, and we have made about £1200 from switching second accounts around.

boingy

Definitely use a donor account rather than your main one, unless you are not happy with your main one.

If you are happy with app-based banks then accounts at places like Metro, Starling and Monzo can all be opened in minutes with the debit card arriving in a few days (you need the card number to switch). Alternatively your current bank may let you open a second current account. I did that with Halifax. Just make sure that the donor account is with a bank that is part of the CASS scheme: Banks & building societies signed-up to the Current Account Switch Service and check the terms and conditions of the switching bonus. You often need to deposit a minimum amount in the account.

Once a switch is complete and the bonus has been paid you can switch that account to another bank for another reward if you want.

Janxx

boingy said:

Definitely use a donor account rather than your main one, unless you are not happy with your main one.

If you are happy with app-based banks then accounts at places like Metro, Starling and Monzo can all be opened in minutes with the debit card arriving in a few days (you need the card number to switch). Alternatively your current bank may let you open a second current account. I did that with Halifax. Just make sure that the donor account is with a bank that is part of the CASS scheme: Banks & building societies signed-up to the Current Account Switch Service and check the terms and conditions of the switching bonus. You often need to deposit a minimum amount in the account.

Once a switch is complete and the bonus has been paid you can switch that account to another bank for another reward if you want.

Hi, sorry for jumping in on some ones else's thread but would like to ask some questions on the same lines. I am very nervous about doing a switch but really want to take advantage of the offers. 
I have just opened a second current account with my main bank (Halifax) to use as a donor account.

Do I have to move my pension payments to this new account or can I just transfer an amount of money over? 

Do I have to move all direct debits to the new account.? 

How soon can I start a switch with this new account? 
Thank you and sorry for my ignorance.   

WillPS

There are no CASS bonuses which I'm aware of which require a salary to be paid in, only an amount - sometimes with regularity, sometimes from a bank other than the bank you move from.

As for DDs, again it depends on the terms of the offer. If it stipulates that you need DDs, then yes one way to fulfil that is to change your existing DDs over - but you can also create some new ones fairly quickly if you'd prefer to leave them where they are.

Rob5342

You'll need to check the terms. I had one that needed £1500 paying in but it didn't specify where from so I just transferred £500 fromy savings and back three times. Direct debits arent always required and when they are it's usually just a couple. I moved two that didn't really matter if they failed (charity donations etc) and left the important ones like bills set up on myain account.

Katiehound

Janxx said:

boingy said:

Definitely use a donor account rather than your main one, unless you are not happy with your main one.

If you are happy with app-based banks then accounts at places like Metro, Starling and Monzo can all be opened in minutes with the debit card arriving in a few days (you need the card number to switch). Alternatively your current bank may let you open a second current account. I did that with Halifax. Just make sure that the donor account is with a bank that is part of the CASS scheme: Banks & building societies signed-up to the Current Account Switch Service and check the terms and conditions of the switching bonus. You often need to deposit a minimum amount in the account.

Once a switch is complete and the bonus has been paid you can switch that account to another bank for another reward if you want.

Hi, sorry for jumping in on some ones else's thread but would like to ask some questions on the same lines. I am very nervous about doing a switch but really want to take advantage of the offers. 
I have just opened a second current account with my main bank (Halifax) to use as a donor account.

Do I have to move my pension payments to this new account or can I just transfer an amount of money over? 
NO

Do I have to move all direct debits to the new account.? 
NO

How soon can I start a switch with this new account? 
Thank you and sorry for my ignorance.   

As soon as you have details of your account and the debit card. You will need all/part of that number to put on the switch form

personally I would put some money in the account. say £100.

If you are moving any DDs to the new account make sure that you have enough money to cover them
There are plenty of new DDs that you can set up that only cost from £2 upwards
Check how long a new DD takes to set up- generally at least a couple of weeks.

When switching I like to make sure that the DDs are working already. (Sometimes T&Cs require DDs to be in place already, others allow you to set up within a time frame.)
Just sometimes SOs can be in t&cs- these are by far the easiest to set up.

Often an amount of money has to be paid in within   time frame- it does not have to be a lump sum- can be composed of the same £100  (for example) going in and out!

Always read and re read the t&cs so that you know what is required

if in doubt you can ask on here, folk are very helpful.