Bank Account "Switch" Service

A question about : Bank Account "Switch" Service

Hi Folks,

I wondered if you had any experience in switching your very first bank current account?

I've been with Barclays since I was a wee lad, I currently have their Premier Life package which suits me quite well in spite of the Ј17.50 monthly fee (concierge, RAC, phone insurance, cinema membership etc all go to good use).

However, I'm trying to get a little more serious with my savings and Barclays just don't have competitive products. My ISA is pitiful as are the rates for their regular savings accounts. I'm seriously tempted by the First Direct account, which has a 6% reg saver account for customers.

My concerns are that Barclays have known my financial history for a long time, I'd assume that if I get to a point where a first time mortgage is feasible for me (i.e. saving a shedload of money), that they would be the most likely to get me on the ladder.

Perhaps this is misguided but if a financial institution has such a wide insight into my financial history, does it make sense to ditch and switch to a different provider entirely (i.e. use the first direct switch facility and make myself Ј125)?

I suspect It'd be best if I kept my Barclays account open and just opened a First Direct without using the switch facility, pay in Ј1k per month. It will lose me Ј125 but allow me to keep Barclays sweet.

Would appreciate any thoughts from the forum.

Cheers.

Best answers:

• Option 3) Open another Barclays account (or any account anywhere else) and switch that one to your desired First Direct account, getting the bonus in the process and leaving your original Barclays account untouched.
  I've experienced the switch process a few times, each time it's been faultless.
  You do not have to pay in Ј1000 a month to First Direct to avoid the fee, there are plenty of ways to avoid it, some very simple.
  There are better bank accounts than First Direct's in terms of rewards, but their regular saver is decent.
• Thanks BSMS,
  Sounds like a plan, have you had success in doing this yourself? If First Direct have no expectation of activity in the account to authorise the switch and Ј125 then that sounds like a winner.
• Have been with Barclays since 16 (now 62) so know what you mean. But, there is no point in keeping any money in there.
  Look at all the switching incentives and earn Ј1500 +
  Leave 0.01p in Barclays to keep open. (Never close and a/c you have opened - use for the next switch.)
  Open a 'batch' of new accounts, incl. Barclays (Beware any effect on credit rating re mortgage app., etc.
  Open tesco savings a/c for direct debits requirement for some switches.
  Plenty of a/cs offering 2/3/4/5% on Ј3k-Ј20k. Single and joint. Ј150-200k to fill the lot.
  Read the switching/incentive threads
• The mortgage bit assumes that you'll be going to Barclays for your mortgage. You might be better off getting a broker to assess your chances across the whole market.
• Good afternoon all,
  Taking the plunge today, have opened a separate bank account with my bank and planning on switching over to First Direct today.
  One thing I'm not clear on re the Ј100 bonus, it's contingent on you paying in Ј1k per month, but there is also mention that if you have a savings account that isn't necessary? I am planning on taking advantage of the 6% regular saver they have, would this mean th Ј1k minimum is not necessary to receive the switching bonus?
  Did have a scan on the forum but couldn't find a clear answer on it.
  Cheers,
  Matt
• Thanks both, yes was aware of the Ј10 monthly charge, should be able to avoid that fairly simply by moving money around but will review the t and cs thoroughly.
  Appreciate the advice.