Personal banking - are unused accounts good or bad?

[mudskipper]

Ta for handy thread as I am about to have same question. Want to move to Santander 123 for all the perks but keep my Natwest account with familiar old number in case the perks dry up, as they probably will, considering they cannot make any economic sense long term. I like Natwest, decent online system compared with most banks.

Only thing to be aware of is that some current accounts have a charge if you don't pay in a minimum of n per month.

[xoggoth]

Ta for handy thread as I am about to have same question. Want to move to Santander 123 for all the perks but keep my Natwest account with familiar old number in case the perks dry up, as they probably will, considering they cannot make any economic sense long term. I like Natwest, decent online system compared with most banks.

[HallsAcctsTax]

I would maybe contact HSBC and get the overdraft removed as this would show up on a credit report and (all be it in extreme circumstances) if you have a lot of open credit facilities (even if un-used) it can count against you in future credit applications.

This was the advice I was given by my Mortgage Advisor when I had a similar issue a few years back, credit checks get tighter and tighter and sometimes the number of credit accounts open will be a factor.

[vwdan]

Thanks both, I'll just leave it for now

[barrydidit]

It will cost HSBC a few pence to do all the end of year reporting, plus it will show as a £50 liability in their accounts, for which they'll have to hold a few quid capital in reserve. So you're striking a <teeny tiny> blow for the banker bashers out there...

As a positive for you personally, you're a customer of the bank so if you require mortgage facilities or a loan/credit card it will cut down on all the id waving required by Know Your Customer rules.

Just remember it's there if you move house!

[SueEllen]

Makes no difference.

A lot of the larger banks are happy to have you as a customer even if your account has very little in it this is because they are affiliated to other financial companies so can send you marketing.

With credit cards it makes a difference.

[vwdan]

A couple of years ago I moved all of my personal banking from HSBC to First Direct (highly recommended, by the way). I kept my HSBC account open at the time because I was under the impression that older bank accounts were better when trying to get credit/phone contracts etc. I also wanted a transition period to catch any unexpected bills and move them to First Direct.

Now it just sits there - the only real advantage is that I can remember the account details off the top of my head. So, I guess what I'm asking is: Are there any negative connotations to having this bank account? It has a £50 overdraft, but simply sits at £0.00 all the time. I don't really mind it being there, but if it's going to hurt then I'll get rid of it.