Two questions re bank switches

designeditdesignedit

I would like to take the switch opportunity to joing Nationwide, the bank I will switch from is First Direct which is basically just a burner account with no funds and no direct debits. I am thinking f using the website 50pdirectdebits. Any feedback on them? Is everything straight forward?

Also, switching from First Direct which I opened last year as a switch but didnt get the switch right so there fore didnt  get the money. So if in the next few months if first direct comes up again would I be eligible if ive held this previuos account?

Thanks

Mark_d

My understanding is that first direct only pay out of you've never had a first direct account before.
Constantly switching banks might, on the face of it, make you some money but if you stick with the same bank your credit report would look more stable and you might be eligible for better credit cards etc.
With all these bank switches and third party services, do you ever accidentally miss a payment?  I did that once and it ade me question whether frequent switching is indeed in my best interest.

Alexland

No idea about 50pdirectdebits but if you have a Paypal account that's great for generating a quick DD buying something cheap on ebay etc.

Also there are some great life insurance offers such as L&G are offering a £120 gift card if you buy a modest life insurance policy for £5 per month DD which you can claim and cancel after 6-7 months. Just beware that the offer terms with some insurers require you to pay premiums which total at least the value of the incentive. The trick is finding the ones that you can profit from.

If first direct come up again you will need to read that offer period terms carefully to determine if you would qualify but generally they disqualify anyone who has previously held a product regardless of if they paid a switch bonus.

designeditdesignedit

I wouldnt use my main bank , which has salary and bills and a very occasional useful overdraft. That would be an absolute nightmare. Credit report wise, Im not looking for mortgage or loans in the near future so not really bothered about that.

PRAISETHESUN

If you've ever had a FD account - regardless if you've been paid an incentive or not - then their terms say you won't be eligible for an incentive. Anecdotally however there are reports from time to time where people have managed to get a second incentive, so it might be possible down the line, but it's not guaranteed.

Never used 50p DDs myself but in principle its straightforward. You set up a DD, you switch it, then you cancel it. It's protected by the DD guarantee so if anything goes wrong and they take too much then you are covered. Alternative DDs are discussed in the thread below: https://forums.moneysavingexpert.com/discussion/6445857/savings-investment-dds-and-debit-card-deposits-an-updated-list/p1

winkowinko

I switched to Nationwide a few weeks back and had a couple of 30p direct sets up. Switch (and payment) went through fine.

designeditdesignedit

ok, just  set up one of the 50p diect debits - do they have to have had a certain number of months payments? The first one will be going out in about five days then ill set up a second

winkowinko

designeditdesignedit said:

ok, just  set up one of the 50p diect debits - do they have to have had a certain number of months payments? The first one will be going out in about five days then ill set up a second

As long as they're showing as active, you'll be fine. To be extra safe, I didn't initiate my switch until after the direct debits had been taken from the burner account.

I set mine up at the same time. Think one of them was 30p, and the other was 50p.

As soon as you've been paid the switching incentive, just cancel the DD's.

4thewww

Yes, I have used 50pdirectdebits before. They are quick and you can setup multiple direct debits, each one shows up as a unique direct debit.

Stargunner

Mark_d said:

My understanding is that first direct only pay out of you've never had a first direct account before.
Constantly switching banks might, on the face of it, make you some money but if you stick with the same bank your credit report would look more stable and you might be eligible for better credit cards etc.
With all these bank switches and third party services, do you ever accidentally miss a payment?  I did that once and it ade me question whether frequent switching is indeed in my best interest.

It is better if you leave your main bank as it is and open burner accounts to switch for the cashback.
You can even open a burner account with your existing bank, as most banks allow you to have up to 3 current accounts.,

Having current accounts with several providers can be beneficial, as it allows you access to their high interest regular saver sccounts, cahbacks, rewards and other incentives.