Changing bank account can be a big decision but is made easier with some nice cash incentives offered from some branches ‘” though are they worth it?
Many banks and financial institutions are offering account holders the option of incentives should you change account to their bank. Many offer cash incentives, such as giving you £100 pounds, should you move accounts.
Another bonus for changing accounts is that it is now possible to do so cheaply and easily. Moving bank accounts has never been easier; banks are currently obliged to make moving your account from them to other banks easy. Some banks are now going further than ever to ensure that there is an automatic way to now handle transfers, standing orders and direct debit changes for those that decide to switch account.
So is it all as easy and as good as it sounds or are there other things to consider?
The transfer process sounds easy since the automation of service; however it is known to fail causing peoples direct debits to fail. This can cause late payments and in the worse case hit credit ratings, limiting your mortgage or credit card options.
To make sure you are prepared for this it is best to keep your old account open for a month or so, this ensures all direct debits are moved over. You should also keep a close watch on the new account and make sure all direct debits and standing orders are paid from it.
Always keep a close eye on the two accounts to ensure everything runs smoothly and there are no issues, late payments or worse. It is very easy to make a mistake when transferring numbers.
So the offer of £100 pounds sounds promising, doesn’t it? However, if you re to move it can be a good idea to consider the hassle of changing over and balance it with the money you’re getting.
If you’re currently getting a good service from your bank and you are stepping into the unknown, is £100 enough for the possibility of bad service?
Moving to a new bank also means remembering new numbers, working a new internet banking system can also cause an array of issues.
You may even have to change back after a period if you’re unhappy. Banks examine records of how long you’ve stayed at a financial institution which means a lot of switching to and fro can cause suspicion. This may mean that your credit rating is affected. Banks see all this movement as the sign of someone running from something and possible a lack of financial stability. This is also worth considering when changing accounts.
All of the above factors may make changing accounts the most expensive £100 you ever got.
So make sure you take all of this into consideration when changing accounts. There might be nothing as expensive or hassle full as moving from one account to the other due to a matter of mismanagement or a matter of luck. As they say ‘there is no such thing as a free lunch’.