Dormant Or Little-Used Bank Accounts

[ScabHunter]

Here's a question for anyone with an in-depth knowledge of the credit scoring system, probably the boss man himself. What is the impact of leaving old bank accounts open?

In my own case, I have just been approved for a Metro Bank current account. I also have Santander, from before my debt problems started, and a Bank of Baroda saving account.

What, then, should I do with my old Co-op and Nationwide basic accounts? The obvious thing to do is close them, as there is no way I am going to be able to generate enough activity to keep them open, at least not without artificially paying money in and taking it straight out again.

Is it best to limit the number of bank accounts you have to something manageable, and close one when you are able to upgrade to something better? What would be the impact of not doing this?

SH

[Never-In-Doubt]

Re: Dormant Or Little-Used Bank Accounts

What is the impact of leaving old bank accounts open?

absolutely none matey - especially not if it has no overdraft. If it has an OD then yea, it might affect future lending amounts (as it's taken into account of your overall affordability/available lending) but with no credit facility attached it will not matter one iota and will not affect any future credit applications.

In answer to your question, I'd close the shitty accounts if they aren't full accounts - why keep them?

[Never-In-Doubt]

Re: Dormant Or Little-Used Bank Accounts

p.s. I have 3 HBOS, 2 Bank of Cyprus, Nationwide, Santander, Bank of Ireland and Coventry Building Society.

That's just my personal accounts

[ScabHunter]

Re: Dormant Or Little-Used Bank Accounts

Thanks!

Why would you need that many bank accounts? Or is that a secret?

Why would HBOS give you three accounts instead of just telling you to keep using the first one?

I'm surprised to see Coventry Building Society in there. I looked at their account, and it sounded as though you needed a completely clean credit file to have a chance of getting it. In the end, I didn't like it anyway for two reasons – firstly, the interest rate which is boldly quoted on the front page only lasts for a year (after that you get 0.1%!), and secondly, if you need a cheque you need to go to the branch to get it. It won't take many bus fares to wipe out that piddling interest rate altogether. That's why I dismissed that account as a gimmick and thought no more about it.

SH

[Never-In-Doubt]

Re: Dormant Or Little-Used Bank Accounts

Interestingly, to prove my point about having defaults etc and obtaining credit....

My credit file entries

* the two yellow 1's is Vanquis and JDW that I am testing the water with



And my HBOS accounts (note the overdrafts) - all opened last year. Likewise I opened Santander only 8 months ago (no overdraft there as not required) - all these accounts are full accounts with full debit card

[SXGuy]

Re: Dormant Or Little-Used Bank Accounts

i have accounts with Barclays, HSBC, Santander, Lloyds, Natwest and Halifax.

Dont ask why lol

[Never-In-Doubt]

Re: Dormant Or Little-Used Bank Accounts

Thanks!

Why would you need that many bank accounts? Or is that a secret?

Why would HBOS give you three accounts instead of just telling you to keep using the first one?

I'm surprised to see Coventry Building Society in there. I looked at their account, and it sounded as though you needed a completely clean credit file to have a chance of getting it. In the end, I didn't like it anyway for two reasons – firstly, the interest rate which is boldly quoted on the front page only lasts for a year (after that you get 0.1%!), and secondly, if you need a cheque you need to go to the branch to get it. It won't take many bus fares to wipe out that piddling interest rate altogether. That's why I dismissed that account as a gimmick and thought no more about it.

SH

Haha - I opened them like you are doing now, to see who would accept me and who wouldn't and each time I appealed (as you can imagine) and then usually got the account. I just never stopped applying really, hence they built up.

Coventry was my main account - I have the Coventry CallSave which is no longer offered. It was brought out in 2008 (approx) for literally a year and then it closed to new business. They come with full banking facilities and debit card

Callsave 2 details here --> Coventry Building Society CallSave MoneyManager (2) Details - Savings - coventrybuildingsociety.co.uk

I then opened a First account. Credit scored via Equifax but appealed

My HBOS, well I opened the main Reward account then just added the others online - you don't get scored the same for extra products, so in theory the one score got me the account and then from there internal scoring gives the OD and extra accounts.

As for the other accounts, well I now use Santander as my main account as I pay around £3000 in bills each month so earn a lot from the 1,2,3 element (£30-£40 per month)

Maybe one day I will close the others, but right now I am happy with Santander and Coventry as the main two accounts in use.

[Never-In-Doubt]

Re: Dormant Or Little-Used Bank Accounts

I'm surprised to see Coventry Building Society in there............


..............That's why I dismissed that account as a gimmick and thought no more about it.

SH

Oh mate anything but! Coventry is probably the best bank/BS I have ever seen. It blows socks off all the banks and also offers a level of customer service you won't even get at Metro.

No shit, the ONLY issue I have is that you cannot utilise Faster Payments, all payments go the next day mid afternoon but otherwise it is absolutely amazing.

Gimmick mate, Coventry is not

[ScabHunter]

Re: Dormant Or Little-Used Bank Accounts

Fascinating food for thought.

The only bad things I noticed about the Coventry were -

You have to go to the branch to get a cheque
The interest rate only lasts a year before going down to 0.1%

there is also a requirement to deposit at least £1,000 each month.

About closing the basic accounts – If there is going to be no detrimental effect, I may try and keep the Co-op one open. It is probably still the best of the basic accounts, and I could always switch it up in place of one of the others should I lose one for any reason. That probably needs some more thought. This is a totally unexpected situation, as I didn't expect to get the full Metro account.

SH

PS SXGuy, are your accounts basic or full current accounts?

[Never-In-Doubt]

Re: Dormant Or Little-Used Bank Accounts

It is though a good overall account.

Interest isn't an issue as I save elsewhere (Poppy's handbag usually) and as for cheques; I'd alleviate that by transferring to HBOS or Santander to write a cheque myself. I still pay mortgage by cheque even now after 6 years - my bank must think wow, he uses chequebooks but I do it to piss off the mortgage company cos they want DD.

[ScabHunter]

Re: Dormant Or Little-Used Bank Accounts

It is though a good overall account.

Interest isn't an issue as I save elsewhere (Poppy's handbag usually) and as for cheques; I'd alleviate that by transferring to HBOS or Santander to write a cheque myself. I still pay mortgage by cheque even now after 6 years - my bank must think wow, he uses chequebooks but I do it to piss off the mortgage company cos they want DD.

Interesting, the way you do things. When you transfer electronically from one account to another, how long does it take for the money to appear in the recipient account?

That is something I'll need to test out for myself now.

SH

[Never-In-Doubt]

Re: Dormant Or Little-Used Bank Accounts

With all banks it's the same day usually (faster payments). An example; stood at Tesco till and realised I only had my HBOS card BUT my funds were in Santander.

So I asked woman to wait 2 mins; I logged into Santander and put £200 into HBOS. I logged out, logged into HBOS and the £200 was there. In most cases it is instant - not same day but immediate.

If you're logged into receipt account refreshing doesn't always update a FP so just log out and back in to see the funds.

Of course I'm talking low transfers like £3k a time. If you go over a certain limit each bank has different rules.

Test it. Move a tenner to your NW then login to NW and move it back and you'll see

I'm talking metro -> NW and back again

[Never-In-Doubt]

Re: Dormant Or Little-Used Bank Accounts

Coventry is still next day. It's not same day transfers to external accounts

[ScabHunter]

Re: Dormant Or Little-Used Bank Accounts

I'm disadvantaged at the moment when it comes to online banking transfers. I can't access my Co-op online banking, for reasons which neither they nor I can understand, and both Metro and Santander need a cell phone number before they will add another payee!

So I asked woman to wait 2 mins; I logged into Santander and put £200 into HBOS. I logged out, logged into HBOS and the £200 was there. In most cases it is instant - not same day but immediate.

Did you do that on an iPhone? I must admit I've never tried to access online banking on a cell phone. I've got a Samsung Note 2, which has got a large screen by phone standards.

I'm sure I'll get round to testing it in time, and I'll report back here with the results.

SH

[Never-In-Doubt]

Re: Dormant Or Little-Used Bank Accounts

Santander has an App mate. Search for it

As does HBOS so all I do is input details, they then text me a code that I input on screen and the payment is sent.

It's awesome and very secure. Same applies to online transfers not using app. That's another reason you need to give a mobile number (mobile banking)...