Two Bank Accounts one purely to pay 3 direct Debets

Hi

I have two Bank Accounts. A Barclays and HSBC.

Barclays -
Wages in
Most of Direct Debets Out
An Overdraft (Although not used now)


HSBC -
Regualar Money Transfer
3 Regular Direct Debets
The odd transaction here and there, usually low on funds but no longer ever in the - (negative)


About 1 year ago I paid back an overdraft that HSBC has withdrawn from my account due to inactivity etc. (basically not paying into it on a regular basis). Consequently I have had three Arrears registered on my credit file which brought down what was (I assume) an already quite a low credit score.

Its been one year since I paid-off that overdraft in full and HSBC hasn't seen any "negatives" since.

To keep that account "alive and active" I have a total of three Direct Debets setup and make a regular transfer to the account to cover the transactions for the month. Other than that I don't use it for much, maybe the odd coffee or a bar of chocolate.

On top of those two, I have recently gotten a credit card to build up that postive credit history.

Question:

The idea on my mind was to close the HSBC entirely and just have the the Barclays account cover all of my direct debets, run as my main account and then obvieously pay off my Credit Card every month.
What do you guys think?
Would it be right to close HSBC or keep it open just in case it "may come in handy in the future"?

Comments

  • I would leave the HSBC account at least as a backup. Barclays had recently some IT meltdown and chances of having the one by HSBC are really slim. Just keep it live by paying few DDs as you do now and make sure not to go below zero into unauthorised overdraft.
  • I meant having an IT meltdown by two banks at the same time :-)
  • colsten
    colsten Posts: 17,597
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    There's no reason why you shouldn't consolidate your Direct Debits onto a single current account. To keep the HSBC account alive, you could just have a couple of Standing Orders - one from Barclays to HSBC, and then one from HSBC to Barclays, to send the money back.

    Mind you, why keep an account that has no real purpose? How about switching HSBC instead e.g. to Nationwide, who would pay you for switching, and would pay you interest for a year, if you play your cards right? Are you concerned you wouldn't get accepted by Nationwide?
  • Keep HSBC as "0" with no direct debit, HSBC cannot close your account
  • colsten
    colsten Posts: 17,597
    First Anniversary Photogenic Name Dropper First Post
    Forumite
    Keep HSBC as "0" with no direct debit, HSBC cannot close your account
    HSBC can close the account if they wish to. They would almost certainly advise their intention to do so before they close it.
  • yeah, you can deposit £10, and then next day withdraw it.
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