Switching Bank Accounts

Knopfler

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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'.
EDIT: From April 2018 the Tesco Instant Saver Account and Tesco Internet Saver Account WILL NOT BE ABLE TO PAY DIRECT DEBITS into the accounts. This applies to both old and new accounts.

Any direct debits currently set up on these accounts will also be cancelled.

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.
 
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Jon

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

Knopfler

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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 ;)
 

Knopfler

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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 :)
 

Knopfler

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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
 

Knopfler

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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.
 

Dylan

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

Dylan

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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.

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

The Reverend

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

The Reverend

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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.

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
 

Dylan

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Go
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.
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.
 

Knopfler

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Important Update to Tesco direct debits, for anyone who switches current accounts etc.

From April 2018 the Tesco Instant Saver and Tesco Internet Saver Accounts will no longer accept any DIRECT DEBITS into these accounts. This applies to both old and new accounts.

Any direct debits currently set up on these accounts will also be cancelled.

So for anyone who switches current accounts, you will NOT be able to use the above Tesco accounts as direct debits anymore.
You need to be looking for and setting up alternative direct debits NOW for any accounts that will be affected ...............................................
 

Woodlands

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Important Update to Tesco direct debits, for anyone who switches current accounts etc.

From April 2018 the Tesco Instant Saver and Tesco Internet Saver Accounts will no longer accept any DIRECT DEBITS into these accounts. This applies to both old and new accounts.

Any direct debits currently set up on these accounts will also be cancelled.

So for anyone who switches current accounts, you will NOT be able to use the above Tesco accounts as direct debits anymore.
You need to be looking for and setting up alternative direct debits NOW for any accounts that will be affected ...............................................

We have already started moving Direct Debits about to meet the requirements of the various Bank Accounts we have that pay interest. We have about 20 Bank Accounts and just move money round the lot by standing order each month to meet the minimum pay-in requirements.

Have started by moving DD for Credit Cards to different accounts and make sure we buy something for at least £10 a month on each card so that it takes the payment to pay off in full each month.

We also have different suppliers for Gas & Electric (which works out cheaper for us) so 2 DD's a month.

Also, our car tax is only £20 a year, so now pay it by monthly DD for £1 extra/year; which is more than cancelled out by the interest we get on the Bank Accounts.
 
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Knopfler

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I still need to get myself into gear to do 1 direct debit - would be freaking out if I had 20 accounts to sort out, eek!
 

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