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Switching Bank Accounts

Discussion in 'Money Saving Tips - Saving money and being Frugal' started by Knopfler, Jul 14, 2017.

  1. Knopfler

    Knopfler The cleverest woodpecker in all of Yorkshire!

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    Has anyone here switched bank accounts to make a bit of extra money? With the 7 day switch it is easy to do and a good way of getting some extra cash, although you will have to wait a few weeks to get the bonus.

    I have switched banks 3 times now in around 2 years and got £150 + £100 + £125 = £375 this way.

    I started off by opening a new current account WITHOUT switching, as I did not want to lose my main current account. I then opened a Tesco instant saver account and a Tesco Internet Saver account as these can both be used to set up 2 x direct debits which you will need for most 'switches'.

    After a couple of months of the direct debit payments, I applied to switch this new current account to a bank with an offer of £150 to switch.

    You do have to be very careful of the terms and conditions of the switch e.g. pay in a certain amount each month (this can be transferred in and out over the month if necessary), have a minimum number of active direct debits already in place, make sure to fully switch the account and close it etc.

    Current switching deals are with HSBC £150, M&S £125 and Halifax £125.

    For anyone planning on getting a mortgage etc soon it may be best not to do too many as they do show up on credit searches.
     
  2. Jon

    Jon Administrator Staff Member

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    Do they not require you to pay in a certain amount of money after moving before they pay out?
     
  3. Knopfler

    Knopfler The cleverest woodpecker in all of Yorkshire!

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    Depends on the bank and the terms and conditions @Jon For instance the Halifax paid out as soon as the switch was completed, after 7 days. Think I had to wait 3 months for the first one.
    T&c's are different with each bank, so need to check first and ask on forums whenever in doubt, before committing ;)
     
  4. Jon

    Jon Administrator Staff Member

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    Interesting.....
     
  5. Knopfler

    Knopfler The cleverest woodpecker in all of Yorkshire!

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    Must admit that I learnt about all this on the 'green site', just thought it would be good to pass it on here too :)
     
  6. Knopfler

    Knopfler The cleverest woodpecker in all of Yorkshire!

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    The important thing is that you KEEP your main current account with all your normal bills, direct debits etc. so don't have to worry about problems with that one.

    Just set up a 'dummy' current account first WITHOUT switching at all, sort out 2 or 3 direct debits and then use the dummy account to switch.
    Then after a few months/yearly, switch your new account to the next one. (You will only ever have your original current account running plus the latest 'switched' account as when you switch an account it has to be closed down completely).

    Also a VERY long thread from hotukdeals that I found helpful when I started:

    http://www.hotukdeals.com/deals/maximise-bank-switch-incentives-earn-up-900-one-guide-2079867
     
  7. Knopfler

    Knopfler The cleverest woodpecker in all of Yorkshire!

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    Some current accounts also have savings accounts attached to them whereby you can earn a higher rate of interest - usually for a year. Of course you need to keep the current account open for this period.
     
  8. PlateSpinningFrenzy

    PlateSpinningFrenzy Well-Known Member

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  9. Samuel Carvalho

    Samuel Carvalho Active Member

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    .
     
    Last edited: Sep 14, 2017
  10. FrugalKaru

    FrugalKaru Well-Known Member

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    I do it regularly but I am so frugal that I struggle to find enough Direct Debits.. Banks are smartening up, Co-*p for example is asking already for 4 DD just for one account.

    Over the years I have had a lot of success, but also 5 failed attempts (learn from my mistakes ;) ):
    * Case 1: Cashback (£80) was not paid as the bank said it took longer than expected to verify my account (I was on a business trip)
    * Case 2: Account was not opened as it took longer than expected to verify my identity (I was on holiday)
    * Case 3: No interest was paid as I wired insufficient funds for 10 months (followed the advise I received in the branch, it was enough to keep the account free but not to earn interest)
    * Case 4: Account was not opened as I had just purchased new property, and the credit agency could not find any records of me on that address
    * Case 5: Account application was made and identify verified but no outcome has been communicated (it's an online bank only, still wondering what's going on as a year has passed)

    All other experiences have been very pleasant, there are many professional people in the system. I recommend such credit interest maximisation.
     
    Last edited: Sep 17, 2017
  11. Dylan

    Dylan Active Member

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    If you do this often you could potentially kill your credit score!
     
  12. FrugalKaru

    FrugalKaru Well-Known Member

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    True (honestly, I have a limited understanding as to how the scoring really works). And not true (I do not need to worry about it). For me the score does not matter, I will never apply for mortgage/borrow money.
     
  13. Dylan

    Dylan Active Member

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    I guess if you play it right then you could keep your credit score up and make money by switching banks ;)
     
  14. FrugalKaru

    FrugalKaru Well-Known Member

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    So far it has worked for me rather well. If I count all active accounts I must have around two dozens, as not all require DDs yet pay interest when the flow is decent. Have you had any issues? Like I said, I struggle to switch as not many active DDs. Ideas welcome :)
     
  15. FrugalKaru

    FrugalKaru Well-Known Member

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    Checked my credit score with two providers. Both reported I was 'good', and above regional but also national average. Nice.

    Should I take out a credit card from a regular bank (my international cards do not seem to count), I would land in 'excellent' category. Not bad.
     
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  16. The Reverend

    The Reverend The Reverend

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    Usually it is just pay in 'x' but there is nothing to stop you transferring 'x/5' into the account once a week, then transferring it straight out. Do that every week and you have paid in 'x' over the month.

    I still haven't switched banks but I like the idea of doing it without giving up my 'current' current accounts.
     
  17. The Reverend

    The Reverend The Reverend

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    Have you thought about doing that and getting a small (£500 or less) limit? If you find one that pays cashback or points or airmiles you could make some money and have an excellent credit score.

    Although as you have said, what is a credit score if you don't want/need to borrow money? :)

    The Reverend
     
  18. FrugalKaru

    FrugalKaru Well-Known Member

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    I discovered another purpose our credit score is being used for, that has to do with insurance. Don't know if the premium is calculated based on that, though.

    I insure both contents and buildings (car has less importance, I'm thinking to ditch it), would like to keep the premiums decent.

    Most of my large expenses are actually in € or with Direct Debits, so it would be difficult to use that card. Discovered that Sainsbury's has a good offer for AmEx (30k Nectar Points), but you'd need to spend £2k within the first 3 months. On what?!
     
  19. Dylan

    Dylan Active Member

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    Good to know. I still think switching would have a negative effect on the history with the banks. I would like to keep my borrowing option good if needed :) . And yes, credit score is important when it comes to insurance and renting.
     

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