Switch&Skim

[ForgeCorvus]

I've been asked to elaborate on 'Skin' accounts and Switch&Skim.
Well, heres where I got the idea and a rough method.
https://www.moneysavingexpert.com/banki ... switching/

What I'm currently doing is setting up a 'Skin'* account, in other words a very stripped down current account that meets the minimum criteria to qualify. This tends to be pay in £1000 to £1500 per month (depending on provider) and have a couple of Direct Debts going out.
Mine is with my current bank (this is because I can't get another switching bribe from them), also I'll be setting up a Standing Order to Sweep most of the money in the account into my regular account (my 'Stash' )which I'm keeping exactly where it is.... My regular deposit will be my wages.

So, say you need to pay in £1000 and have two monthly DD's of £50 each (your 'Stack') going out.
It helps if you deposit 'Seed' money just to cover any gaps in payments clearing.
It would be Seed +£1000 - Stack (£50x2=£100) = Sweep of £900

Don't get attached to your Skin account, you won't have it for long.

I'm going to let mine stew for a month and then find a good offer and Switch, after whatever the waiting time is for the payout I'll be looking for the next bank bribe and then I'll Skim the payment off and Switch again.

Don't do this if you need a good credit rating

This is perfectly legal and do remember to keep a list of accounts and dates as there are time limits used by some banks or groups of banks.


* Like troll-drugs, all of the terms I'm using begin with "S"..... To make them easier to remember

[grenfell]

Martin Lewis talked about this recently and was in agreement with you. One thing to add to what you have written concerns joint accounts. He was saying that if you're a couple with a joint account don't switch to another joint but to two seperate accounts so as to get two switching payments , an even better win.

[ForgeCorvus]

Update time:

My first switch has now paid out and I'm looking for the next victim.

I've started a new document on my computer listing account providers and the dates of my switching to them, this is important as some banks will let you get another bite of the cherry but only after a set period of time (a couple of years is typical)..... Some like Santander have a 'One and Done' policy

[GillyBee]

I set up a new current account at the weekend. It cost me 15 Experian points so take care with your credit score if this is important to you.

[korolev]

Why does it affect your credit rating ? (Not that I'm overly bothered, except that I might want to switch credit card if a better cashback comes along).

[GillyBee]

A credit check is carried out whenever you open a new account. These are "negative" for your score as opening new accounts can be a symptom of someone with money trouble trying to play the system.

[itsybitsy]

There's actually no such thing as a 'universal' credit score as different agencies will use different criteria to score you on. What you actually *do* have is a credit file. This article is from the Scotsman with the source being Martin Lewis.

https://www.scotsman.com/lifestyle/mone ... al-3260391