Switching bank accounts may seem daunting, but it doesn’t have to be. With the right steps, you can easily move your account to a new bank, and in many cases, enjoy better features, lower fees, or higher interest rates. Whether you're looking for a better savings account, lower overdraft fees, or better customer service, this guide will walk you through the process of switching bank accounts in the UK.
Why Should You Consider Switching Bank Accounts?
There are many reasons why you might want to switch bank accounts:
Better interest rates: Some banks offer higher interest rates on savings or current accounts, meaning your money can work harder for you.
Lower fees: Banks charge various fees, such as for overdrafts or maintaining an account. A switch can help you reduce these costs.
Better service and features: You might want more flexibility, better mobile banking, or access to additional services like credit cards, loans, or rewards programs.
Promotions and rewards: Many banks offer incentives, like cash bonuses or rewards points, for switching your account.
How to Switch Your Bank Account in the UK
Switching bank accounts in the UK is easier than you might think, thanks to the Current Account Switch Service (CASS), which guarantees your switch will be completed within seven working days. Here’s how you can make the switch smoothly:
Step 1: Compare Bank Accounts
Before making the switch, it’s important to compare different bank accounts to find one that suits your needs. Some things to consider when comparing accounts include:
Monthly fees: Some current accounts charge a monthly fee, while others are free. Look for a bank that offers the services you need at a cost you’re comfortable with.
Overdraft rates: If you occasionally go into overdraft, make sure to check the terms. Some accounts offer fee-free overdrafts, while others charge high interest rates.
Interest rates: Some banks offer better interest rates on your savings, or reward you with cash back or points for spending on certain services.
Customer service: Research the bank’s reputation for customer service. Check for online reviews and look for any awards the bank has received for customer satisfaction.
You can use comparison websites like MoneySuperMarket or Compare the Market to find the best bank account options based on your preferences.
Step 2: Choose Your New Bank Account
Once you’ve compared accounts, choose the one that fits your needs. When choosing, consider whether you want:
A basic account with just the essentials for everyday spending.
A reward account that offers cash back or other benefits.
A high-interest account to maximise your savings.
Step 3: Start the Switching Process
Once you’ve selected your new bank account, you can begin the switching process using CASS. The service makes the process simple, and the bank will handle the transfer for you. Here’s how it works:
Set up your new account: You’ll need to open your new bank account, either online or in-branch. Make sure you have all the necessary documents, such as proof of identity and address, to complete the process.
Use the Current Account Switch Service: The bank will guide you through the CASS process. Once you start the switch, your new bank will notify your old bank and take care of transferring your payments, such as direct debits, standing orders, and salary payments.
Choose a switch date: You can select the date for the switch to happen. CASS guarantees that the switch will be completed within seven working days, and your old account will be closed automatically once the switch is complete.
Step 4: Monitor Your Accounts
Once the switch is complete, it's a good idea to monitor both your old and new accounts to make sure everything has gone through smoothly. Check that all direct debits, standing orders, and salary payments have transferred correctly.
You’ll also want to check your old account for any pending charges or payments. Once everything has been switched over, you can close your old account (if you’re not keeping it open for any reason).
Benefits of Switching Your Bank Account
Switching bank accounts comes with a range of benefits:
Better deals and promotions: Many banks offer welcome bonuses or rewards points when you switch, such as cash bonuses for opening a new account or rewards for regular spending.
Improved financial management: A new bank might offer better mobile apps, budgeting tools, or savings goals features to help you manage your finances more effectively.
Improved interest rates: Switching accounts could help you get a better interest rate on savings or even reduce the fees associated with your current account.
What to Do if You Encounter Problems During the Switch
While most switches go smoothly, there can occasionally be problems. If you experience any issues during the switching process, here’s what you can do:
Contact your bank: Your new bank will have customer service available to help with any issues that arise during the process.
Contact the Current Account Switch Service: If there’s a problem with the CASS process itself, you can contact their customer service for assistance.
Final Thoughts
Switching bank accounts in the UK has never been easier, thanks to the Current Account Switch Service. By comparing accounts, choosing the right one for your needs, and using CASS, you can enjoy better features, lower fees, or even rewards for making the change.
Start comparing accounts today to find the best one for you. Remember to check customer reviews, compare fees, and see what rewards are available, and you’ll be well on your way to a better banking experience.
Subscribe for more tips! Subscribe to our newsletter
Disclaimer: Smart With Money may receive compensation from affiliate links, advertisements, and partners featured on this site. This compensation does not influence our editorial content, reviews, or recommendations. Our opinions are our own, and we aim to provide accurate and objective financial information to help you make informed decisions.
Additionally, all content provided on SmartWithMoney.co.uk is for informational purposes only and does not constitute financial advice. Please seek independent financial advice before making any financial decisions.