How to switch bank accounts

Under the Current Account Switch Service, banks must ensure that all incoming and outgoing payments are moved to your new account within seven working days of switching bank accounts. Previously, this process could take up to 30 working days.

As of November 2023, more than 40 UK banks and building societies have signed up for the Current Account Switch Service, making switching easier and more accessible. However, before you jump ahead and switch banks, there are still a few things worth checking and considering.

• How do I know which bank to go with?
• Decide on an account switch date
• When should I switch bank accounts?
• Can I switch bank accounts while in overdraft?
• Can I switch a joint bank account?
• Do I have to close my old account when switching?
• Can I switch banks and get money?

How do I know which bank to go with?

Once you’ve decided to leave your current bank and switch, the first step is to look at your options and find a new suitable bank. Who you go with will depend on your circumstances and what you want to get out of your bank.

We've listed a few features to consider when switching bank accounts below:

• Monthly account fees
• Card fees
• Account packages and benefits (these usually come with perks such as discounts, insurance for travel, car breakdown cover and mobile)
• Savings interest rates and any related restrictions
• Cash or rewards offered for switching
• Cashback and rewards on transactions
• Overdraft limit and interest rate charges
• Overseas fees and foreign exchange rates
• The bank app and tools that come with it, such as budgeting and spend monitoring

There are many types of personal bank accounts, too, and it helps to have an overview of these. For example, a student bank account may be more suitable for you if you plan on studying.

You'll need to apply once you've decided on a new bank account provider. Normally, you are asked if you want to switch from an existing account during the application. You’ll be required to follow the new provider’s standard account-opening procedures and fill in a 'Current Account Switch Agreement' form and a 'Current Account Closure Instruction' form.

When comparing bank accounts, it's also worth looking at challenger banks, many of which are online only accounts. These banks may not offer a cash incentive for switching, but they may offer features that could benefit you. For example:

• Chase Bank: customers get 1% cashback on debit card purchases.
• Monzo Bank: no foreign transaction fees for using a debit or credit card abroad.
• Starling Bank: no monthly fees for our personal, business or joint accounts.

Terms and conditions apply. Offers correct on date written.

If you decide to go with an online-only bank, ensure your money is covered by the Financial Services Compensation Scheme (FSCS). For example, prepaid card accounts are not covered by the FSCS.

Decide on an account switch date

You’ll need to give your new bank a date by which you’d like to switch accounts. Unfortunately, you can’t switch on weekends or bank holidays and your chosen date needs to be at least seven working days in the future.

Once you’ve selected a date, your new bank will confirm and complete the switch on your chosen day. You can continue using your old account until the switch date. Just be careful not to set up new direct debits or standing orders, as these may cause issues. On the day of your switch, your bank will move your bank balance across, as well as any direct debits and standing orders, before sending you a confirmation that the switch has been completed. Incoming payments, such as benefits or wages, will also be redirected to your new account.

When should I switch bank accounts?

The best time to switch your account to another bank may be when you no longer want to use your current provider or find a better deal elsewhere. In the past, deciding when to switch took a lot more consideration. However, with the Switch Service, the change or transfer should be completed within 7 working days. If the majority of your direct debits and standing orders go out around the same time, it may be an idea to switch in the days after your last direct debit is due that month.

Can I switch bank accounts while in overdraft?

Yes, you can switch your account even if you are in overdraft; the overdraft balance you owe can be transferred to your new account. However, in some cases you may need to pay off debt with your old bank, for example, your new bank does not offer you an overdraft. Whether or not your new bank offers you another overdraft will depend on your circumstances and how financially reliable you are.

With many UK adults in overdraft every month, it's worth considering the costs and risks of being overly reliant on this service. While interest rates are capped at 40%, making them cheaper than high-cost credit like short term loans, regular use will start to add up.

If you have an authorised overdraft and have a good track record of using it responsibly, your new provider will likely honour your existing overdraft amount. Some banks will let you keep your old account open while you pay back the remaining amount on the overdraft. However, others will insist you clear the debt before completing the switch.

Can I switch a joint bank account?

The simple answer is yes, as long as both joint account holders agree. However, the switch must be to another joint account: the account cannot be moved into one person’s name. Joint bank accounts may be an option if you are married or managing shared bills as a couple.

Do I have to close my old account when switching?

It's really up to you; however, using the Current Account Switch Service usually involves closing your old account. There is no reason why if you wanted to keep your old account open, you couldn’t do so. In most cases, you can do a partial switch instead of moving your funds.

However, by doing this, you won’t be covered by the service guarantee, so you won’t be refunded if things go wrong and you miss a payment. It may also take more than 7 days for your switch to be completed, and often, you won’t receive the same attractive switching incentives you would if you were using the full switch service.

Can I switch banks and get money?

Yes, many UK banks offer a switching reward or cash to gain more customer from their competitors; this can be as much as £200, depending on the account. There may be certain requirements and introductory offer rules. So, if you plan on moving away from your current bank it's worth looking at the available deals while weighing up costs and benefits.

Here are a few examples of switching bank accounts rewards:

• Nationwide: £200 for switching to NationWide Flex Direct
• FirstDirect: £175 for switching to FirstDirect 1st Account
• Barclays: £175 for using the Barclays App to switch

Terms and conditions apply. Offers correct on date written.

Final thoughts

While the Current Account Switch Service has made switching banks easier, and there can be cash offers to switch, it's worth taking time to compare UK bank accounts to decide what is best for you. For example, check the new bank account's features to suit your needs and ensure fees are not higher. Ensure the new account provider is part of the Current Account Switch Service. If you are overdrawn now, check that your new account provider will give you the same overdraft limit. 

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