Switching a 'dead' account

Richard019

Fairly new to the site, although some of the methods I've been using without realising it. Does it cause problems if you switch an inactive account to another bank? (explanation below if I'm not being clear enough about what I mean)

I have two current accounts with NatWest. One is from when I was a student and I'm using the interest free overdraft to deficit bank. The other I set up when I got my own place to put money in to cover my bills whilst I got used to things.

I recently opened one of those 8% accounts with the Abbey (yes I know) to effectively switch the two Natwest accounts to. Obviously I wanted to keep the overdraft with Natwest as it's making me money so I did the switch manually.

What I have now is a NatWest account with £1k 0%OD and no transactions in or out. Another Natwest account with zero balance and again no transactions either way, and an Abbey account that I use for everything.

When I opened the Abbey account I was told the 8% was only for £2,500 if I switched accounts to them so I got it at £1k (probably for no good reason but piece of mind). This year it's not an issue but next year I should have a bit more money.

After I've used my ISA allowances up I hope to have another £2-3k available but not spendable. If I had two 8% accounts with different banks I could put £1k-1,500 in each and get 6.4% back. On current levels that's in practice doubling up my ISA allowance. Now to get that rate you usually need to have £1k going in each month which can be sorted by doing a payment each way at the start of the month.

The problem is that to get that much at that rate you need to have an account to switch from and I want it seperate from my main account so I'll have to switch the 'dead' accounts. In theory I could set up the transfers before I switch but then I need to have £1k in all 4 accounts to cover the switch period which is probably not going to be an option at the start. Is it going to cause a problem when one bank asks the other for all the transactions and they say there aren't any?

noh

Richard019 wrote: »

.....
Is it going to cause a problem when one bank asks the other for all the transactions and they say there aren't any?

Yes they normally expect to switch some DDs or standing orders.
Just set up a couple of small standing orders to your other accounts.

Nigel

Richard019

noh wrote: »

Yes they normally expect to switch some DDs or standing orders.
Just set up a couple of small standing orders to your other accounts.

Nigel

:doh: for someone so good at the technical in principal side I miss the simple things. (Can't afford to have 4k to cover things -use smaller amounts)