Don’t want to switch your main account? Get one of these instead.
Long-time readers will know I’m a huge fan of switching old current accounts to different banks. Sometimes this is just to get a better account than the one you already have, and sometimes it’s in order to get free switching cash.
But to get this free money there’s always a key condition – the account you switch from has to be closed down.
There are lots of reasons you might not want to do that, meaning one of the most frequent questions I get is what is a good current account to open purely so it can be used to switch to another bank for a bonus.
Well, here are my top “dummy” account you could open with the main aim of ditching it soon after, along with a few things to think about first.
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Reasons not to switch an existing account
Let’s start just by going through reasons you might want to keep your existing account.
You like your bank
Though there are plenty of banks that leave a lot to be desired, some are actually pretty decent. My main account is with Starling and changing it to a different one would give me an inferior app and banking experience.
You get decent rewards
There are a number of current accounts where you’ll get freebies or extras that are worth keeping. For example:
- £5 a month via the Halifax Reward account
- 6 cinema tickets via the Club Lloyds account
- Cashback on bills via the Santander Edge account
- High paying regular saver accounts from Nationwide and First Direct
If you switch away you’ll lose these benefits, so keeping the account can be worthwhile. Of course, some other account rewards are worth less and you might be fine ditching those.
You’ve had your account for a long time
There’s a good chance if you’re new to switching then your main account is the same account you’ve had since leaving school. That could mean you’ve had it for decades – and that longevity is seen as a positive when you apply for credit.
So closing an old account could mean your credit score dips. This isn’t a massive concern, but it’s worth avoiding if you can, especially if you have a big credit application such as a mortgage or important balance transfer card around the corner.
You can’t switch your account
More than 40 of the main UK banks and building societies are part of the Current Account Switching Service, which means you can switch them to a new account as part of the scheme. This is a requirement for all switching bonuses.
However a handful of digital accounts aren’t part of it, and if this is your main account you can’t switch. The most likely ones you could be using are:
- Kroo
- Monese
- Revolut
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It’s your only account
I think it’s a bit risky to have just one current account, so if you’re after bank features other than a switching bonus (e.g. a 0% overdraft or one of the rewards mentioned above) then it makes more sense to open up extra accounts and keep the existing account as a spare.
You can then, with most banks, ask for a partial switch where you choose what is moved over. This keeps the old account open. However, you won’t be protected by the Current Account Switch Guarantee.
You don’t have a debit card
One condition that’s often overlooked from a switch is the requirement to have a debit card. If like me you’ve got old accounts you no longer use, it’s possible that the debit card expired and a new one wasn’t issued. If that’s the case, you can’t switch it.
There’s sometimes also an issue where new debit cards aren’t recognised in the first month of issue by the bank you’re switching to, whether that’s a replacement card or a brand new one.
Factors to consider from a “dummy” account
Before you open a new current account, you need to decide if any of these factors are in play:
- Does the account offer any decent ongoing benefits?
- Does the bank ever run switching deals?
- Does the bank require a hard credit check?
- Do you think you might want to use that bank in the future?
- Have you already used the bank as a “dummy” account?
Answering yes to any of these doesn’t rule out going for it, but it’s worth thinking about them first.
Types of “dummy” accounts
The soft check account
Most banks will hard check your credit report when you apply. This will have a short term impact on your credit report and score. Most of the time it’s not an issue, but you might want to avoid this if your score isn’t great or there’s an important application on the horizon.
However, Chase, Monzo and Starling are quick accounts to open and are the only ones that won’t perform a hard check on your credit report to check your identity – as long as you don’t apply for an overdraft. As mentioned, other digital banks like Kroo and Revolut aren’t part of the switching scheme.
You won’t be able to keep doing this with Monzo or Starling. For a start there can be a wait until you can open an account with them again (one year for Starling, 30 days for Monzo). Plus the banks have checks that will flag your application and you could be rejected.
However, Chase doesn’t have this problem. Once you’ve opened your main Chase current account you can add extra ones within the app (make sure it’s the current accounts and not savings accounts you open). Each has their own sort code and account number and you can use these to switch away without closing down your entire Chase account!
You won’t get new debit cards for these extra Chase accounts, but that won’t be an issue when you switch away. Your Chase card will continue to work with the current accounts left open.
Though most banks also offer “basic” current accounts (which also don’t run credit checks), they might not give it to you if you’re eligble for a standard account, so they probably aren’t worth going for.
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Find out if you can get free cash for switching bank.
The extra account with your existing bank
Another easy option is to look at additional accounts with one of your other existing banks. These will in theory be quite fast to get and since you’re already set up with online banking there’s no waiting around for that. There might not even be a credit check (though this depends on the bank).
This also means you can keep ongoing benefits with that bank as switching one account doesn’t close others. If you’re going to do this then go for a free account rather than one that has fees.
The account with some freebies
There aren’t many banks that offer you something when you up that you might be able to keep, but there’s one worth considering.
The Club Lloyds account mentioned above will give you 6 cinema tickets, Disney+ with adverts or a year’s magazine subscription. In the past the freebie would have lasted for the year, but now that’s more unlikley. However, if you opt for the cinema tickets you’ll get them all at the start. So use them before switching and you’re quids in.
You’ll also hopefully be able to get switching money from the bank in the future since most switching deals for Lloyds have only stipulated that you can’t have had the cash bonus before, not that you’ve previously held an account, so you’d hopefully be able to open a new account and switch into it when that offer returns.
The accounts that rarely offer anything
Finally, there are some banks which aren’t up to much, so by opening an account it’s unlikely you’ll miss out on current offers. The risk is this could change and by having had an account you rule yourself out of future switching deals.
At the moment the only bank to consider here is:
- Metro (a £50 switch deal ran in 2020)
Which accounts to keep and ditch after switching?
Once you’ve got a dummy account and used it to switch, you could keep switching this spare account for future offers again and again.
However as mentioned earlier you can have multiple accounts and some are worth keeping. Ideally look to have two or three accounts, perhaps up to five.
Personally I’d aim to have the following accounts, rather than switch away once getting any money:
- Halifax Reward (worth £60 a year)
- Santander Edge (worth £30 to £40 a year from cashack, plus 7% easy access saver)
- Natwest or RBS Reward (worth £36 a year plus 6.12% regular saver)
- Club Lloyds (worth £60 for Disney+ with Adverts)
- First Direct (7% regular saver)
- Nationwide (8% regular saver)
HI Guys
I need some clarity please i have just spoken to Chase on the phone they say if you use any of the current accounts to switch they close down you whole account. I have only opened 1 extra and they say we will shut down my main Chase account as well if i do a switch. Has anybody tried to use the Chase method without this happening?
Already switched one dummy account with Chase and in the middle of switching another.
I also wonder this. Has anybody tried switching from Chase?
I am planning to switch one of my Chase current account to Club Lloyds. When I set up a direct debit on Paypal with my Chase bank account. I can only add the debit card number instead of a chase specific account number. Will it consider as an active direct debit when switching?
Hi Lee,
Any joy with this?
I would like to use the extra Chase account as a dummy but I would want to keep the main account ant least until the year of 1% cash back is over.
Thanks,
I am puzzled by your comments about Club Lloyds, suggesting people switch out of this account after the first 12 months. This comment assumes there are no more freebies after the first year. In fact, the freeebie “Lifestyle Benefits”, such as free cinema tickets, are renewed each year.
This article could do with a small update now that Chase are put of the switching scheme.
Is this true? Does switching work from Chase to another bank?
Yes. In the app next to current accounts press (add+).
You can then name it. (I just call it “Spare”). It’ll have a new account number and sort code you can use to switch straight away.
Can you switch an account with no direct debits and 0 balance on the same day you opened it?
Hi there thanks for great blog.
I am already with Santander. I have kept account I have with them. I just opened a very basic current account and literally switched it immediately on opening without even putting any money in or setting up any Direct Debits. There are no requirements for £200 offer with Natwest in terms of Direct Debits and I ve deposited the £1250 required from elsewhere. Will this still count as switch?
Hi Dylan,
This is what i Plan on doing. Did they pay out on the £200?
Hi
Did you apply for Natwest account even before receiving a debit card from your née dummy account?
Jonny
Hi Andy,
For the option of “The extra account with your existing bank” – would the bank do a hard check for this? I have a joint account in Halifax, so can my partner and I open additional individual current accounts in our respective names for the purpose of switching without having an impact on our credit score?
Thanks,
Y
Hi Andy,
Just an update for this page in your blog. You said above that monzo is 30days to open another new account after closing their account. It isn’t the case anymore. Just got rejected after 4 months of closing the old account. I’m hoping they didn’t do a hard search aswell but I’ll have a look next month.
Hi Andy,
You’ve mentioned that you can reuse a dummy account to switch many times but doesn’t the account your switching close down as part of the switching conditions with some banks?
Regards,
Nazar
Starling don’t let you see your card without verifying… signed up in hopes of using it to switch :/
Verifying by which I mean waiting for your card and verifying the security number
Hi Andy,
You’ve written that with Monzo you can “see your new debit card number straight away,”
However I’ve just signed up, and it won’t show my card number until it’s activated when the physical card arrives… which will be to late for the switch…
Any ideas?
Might just have to try starling now?
They offer virtual cards. Maybe that would work?
Re: TSB’s Spend & Save
Quidco are offering £30 at the time of writing, better than TCB’s current offer.
Re: accounts to ditch
The Co-operative Bank and Nationwide BS are both more ethical options compared to others. In the case of Nationwide your current account also gives you access to the Members’ Prize Draw. Perhaps these are worth mentioning?