Clarification on making saving accounts work in the UK?

[yorkshiregal]

Hello all, I'm new here so please don't be too harsh. I've read a lot but I'm sure there's plenty more to learn.

I'm wanting to check a few things

1) At what point do the banks start asking why I need so many accounts? I have my main current account with the co-op and an old current account with the halifax, these were linked to my suspended ebay account. I have since set up the following; 3x natwest instant savings accounts, 2x halifax online savings accounts and 2x coop online savings accounts. I also have 2x old yorkshire bank basic accounts that have been unused for 8 years, apparently I can reactivate these if I go into branch but for now they are dormant. Am I taking the mick?

2) Would the bank be suspicious if I used the account to verify, withdrew some cash from the paypal (in a different name), then closed the account and opened another? All the while, using it for nothing else?

3) How can I limit the damage to my credit rating? Does the account type matter, or does the application itself have a negative impact?

4) The exact process for adding saving accounts is unclear. I know the DD will be rejected if left on there long term, so should I add the savings account, get the 2x deposit amounts, verify then remove the card? Adding it later for withdrawal? Or do I need a different savings account added for withdrawal?

Sorry if these are newbie questions but I can't seem to find clear answers anywhere.

X

[NoneOther]

1) Banks will start to ask questions if they feel you are 'abusing' their services.

2) All accounts should be used as if they were 'real'. Unusual activity will bring unwarranted attention.

3) Only open BASIC accounts and savers as these do not require a full credit check only ID and address verification.

4) Only one saver is required. It is not a given that a bank will reject a DD Mandate from a saver, I've had them attached constantly (never removed and re added) to several p/p accounts for almost two years without any issues. IMO constantly adding and removing accounts from p/p brings unwarranted attention which is best avoided

[yorkshiregal]

Thanks for your reply noneother. What would you suggest for making them more real? I don't think they come with debit cards (except the natwest ones) so I can't buy everyday things with them. I can't really think of anything other than transferring it to my normal current account. Would it help to transfer in smaller amounts perhaps?

Or are you referring to the closure of accounts as suspicious? Hopefully it wouldn't be a regular thing, just if/when the account got limited.

x

[NoneOther]

Yes repeated closing and opening of new accounts is not 'normal' behaviour as far as a bank is concerned.

If you are expecting to get limited on a regular basis I would suggest a good overhaul of your business model would be the first thing to look at before going anywhere near e/b, p/p or the banks

[yorkshiregal]

Thanks for the help. I'm not expecting to get limited often, just preparing for it.

X

[rsot]

With good operations - not high risk items, building reputation of accounts, selling slowly, etc - you wont need to worry all about limitations - might happen, but chances are even that you can survive longterm