Idiots Guide to Switching Banks

splendid_cushion356

Hi all,
Looking to start switching banks to earn the freebies as I go back to work from maternity soon, and have accumulated some debts while I've not been earning. I've read the MSE guide and searched in the forum.

It could be my baby brain, but I'm still not fully understanding how I go about it. I think I'd prefer the option of setting up a burner account and going down that route.

Currently with RBS. Can I set up a non reward account and go from there? I started setting up with Chase but it's asking questions I don't have answers for yet, as I don't know my new part time salary etc. Should I wait a month or two?

Could someone lay out step by step what I'd need to do?

Our mortgage, insurances,council tax etc comes out of my current account so the less faffing about I need to do the better.

Thanks in advance 🙂

sausage_time

If you have an existing relationship with RBS the opening a new account with them first would be easiest I think?  Something like their Everyday Bank Account for example.  Then move 2 Direct Debits (at least) to that account - whatever the one you want to "switch" to requires.

When you open the account to be switched to they will likely ask for the same details that Chase were requesting though. 

BlueonBlue

Just tell them what they want to hear as thats what banks do  .

Eco_Miser

If you're going to use a burner account, you probably should use 'burner' DDs. See https://forums.moneysavingexpert.com/discussion/6445857/savings-investment-dds-and-debit-card-deposits-an-updated-list/p1 which lists sources of Direct Debits suitable for meeting the requirements of switching offers, and other offers.

PRAISETHESUN

I'd also recommend using a secondary current account for switch offers. Leave your main account alone.

Chase is best from my experience as they don't conduct hard credit searches for every account you open. You could do the same with RBS, but personally I'd caution against upsetting your main bank by opening donor accounts to switch away frequently.

Once you open your first Chase account, in the app you should then open a second Chase account. If you close your one and only account with Chase then they never let you open a new account. However if you have 2 (or more) accounts and close one of them then you won't have that problem. From there, set up your donor DDs (typically need 2+ for most switch offers, although Lloyd's offers have been asking for 3+ the last few offers). If an offer comes around that doesn't need DDs then just open a new Chase account and switch that instead so you don't need to faff about with your DDs again.

As for the questions Chase ask, it doesn't need to be exact. If you have a rough idea of salary, etc, then that's all they are looking for. Most banks will also ask for the same info when you apply for new accounts, so the main thing is to be consistent between applications.