You may think that switching bank accounts would be a nightmare, but it is actually easier than ever! 99% of banks have now agreed to use the Current Account Switch Service, which means in just seven working days from opening your new bank account you will be completely set up and ready to go.
This service applies to current accounts, however not with the following:
- Saving accounts
- ISAs
- Non-sterling payment accounts
Why switch
By switching to a new current account, you can make money. A new account could come with:
- Cash reward, e.g. £100 for switching and opening a new account
- Cashback or rewards schemes on your spending
- Lower fees and monthly charges
- Higher interest on your balance
- Cheaper or free overdraft service
- Better customer service
Find a new bank account
When choosing a new bank account, you need to decide what works for you. Think about how you use your current account and compare what you’d benefit from the most. Compare top bank accounts for earning interest, free overdrafts, etc.
Check you’re eligible for the current account to want to switch to.
Apply for your new account
Once you’ve found the right account for you, apply for it online, by post, in a branch or by telephone. The bank will also require the following to open up your new account, switch everything over from the old and close the old account:
- An application form
- A Current Account Switch Agreement
- A Current Account Closure Instruction
These will provide your personal details and your old bank account information.
Your new bank will run a credit check as part of the application process and will require proof of ID and address.
If any details provided do not match those on your old bank account, the switch could be delayed. If any have changed and not communicated to your old bank account, it is worth updating them before you start the switch.
Getting ready
You will be able to agree a convenient switch date for you with your new bank or building society. It must be:
- In seven or more working days
- On a working day. It can’t be a Saturday, Sunday or bank holiday
You will continue using your old current account up until the agreed switching date, though don’t set up any new payments such as direct debit, standing order or other payments during the seven working day period before your switching date.
Start using your new account
On your agreed switch date, your new account will be ready to use, and your old account will then be closed. Your new bank will have received all your regular income payments, outgoing payments and your remaining credit balance.
If you have any future dated payments set up within seven working days of your switch date, they cannot be transferred across to your new account.
Which switch service should I use
When you complete the application for your new account, you have the option of which service to use:
Current Account Switch Service (CASS)
You can use this to close your old account and move all your income and outgoing payments to your new account. It works with almost every current account in the UK, will take seven working dates.
- You choose the switch date
- Kept informed throughout the whole process
- Moves your incoming payments to your new account
- Moves your outgoing direct debits and standing orders to your new account
- Forwards any payments made to your old account to your new one for 36 months
The switching service is completely free. If anything goes wrong and you lose out, the bank has to pay you back for losses incurred.
Partial Switch Service
If you decide to use the Partial Switch Service, you can:
- Will leave your old bank account open
- Only move some of your payments across
There will, however, be no guarantee that it will be completed in seven days, payment will be redirected or refunded for errors. These switches are less common so make sure to check with your bank first.
7 Day Switching Guarantee
- The service is free to use, and you can choose and agree your switch date.
- They will take care of moving all your payments going out (for example, your Direct Debits and standing orders) and those coming in (for example, your salary).
- If you have money in your old account, they will transfer it to your new account on your switch date.
- They will arrange for payments accidentally made to your old account to be automatically redirected to your new account. They will also contact the sender and give them your new account details.
- If there are any issues in making the switch, they will contact you before your switch date.
- If anything goes wrong with the switch, as soon as they are told, they will refund any interest (paid or lost) and charge made on either your old or new current accounts as a result of this failure.
