How to switch bank accounts

Switching your bank account is easier than you think. With the Current Account Switch Service (CASS) most of the work is done for you, and it is also completely free for you to use. In a few simple steps, you can transfer your bank account to a new bank or building society and profit from better interest rates or overdraft charges.

There are a number of reasons why you should consider changing your bank account to another bank. So the first question to answer is not how to switch bank accounts, but why. Banks and building societies are different in many aspects, including interest rates, overdraft fees, and also customer service. Some banks also offer some account switching bonuses, however, it is not recommended to just change your bank account because of an offered bonus, but rather focus on interest rates and overdraft charges.

The Current Account Switch Service – commonly known as CASS – is a service based in the UK. Their main purpose is to help people change their bank accounts from one bank or building society to another. The service is completely free and aims to encourage competition between banks by making it easier for customers to switch accounts and find better deals. In the process, the Current Account Switch Service takes care of the following: 

• Simple and Hassle-Free Switch: The switching process from one bank or building society to another will be easy and quick. You don’t have to manually transfer direct debits, standing orders, or any payments. 

• Automatic Transfer of Payments: All regular payments, direct debits, and your balance will be transferred from your old to your new account by the service. An automatic redirection is set in place in case any payments are accidentally made to your old account.

• Guaranteed Process: You will get a guarantee by CASS, that your switch will be completed within 7 working days. The service also includes a Current Account Switch Guarantee, which means that if anything goes wrong in the process, the service ensures that any mistakes are corrected and you won’t lose any money. 

• Account Closure: After the switch is complete, your old account will be closed.

Switching a bank account is easier than you think. With the Current Account Switch Service (CASS), you only have to take a few steps to get a new bank account. We guide you through each one, pointing out what you need to do from start to end. 

Before you transfer your bank account to a new bank or building society, you need to make sure if you’re able and eligible to switch. "For example, you cannot switch a joint account without the permission of both account holders. You also cannot switch savings accounts, ISAs (Individual Savings Accounts), or non-sterling payment accounts in the UK. Further, you need to make sure that you’re eligible for the current account you want to switch to. Having a number of direct debits and a set amount of money entering your account each month are two common criteria for eligibility for a current account.

Next, you should compare accounts. There are many options to choose from, such as high-street banks with branches or online-only banks. Think about what fits best for you, depending on how you want to use your current account. If you'd prefer to earn some interest on your cash, it's also worth comparing savings accounts too.

Now, you can get ready for the actual switch. First, you should review your existing payments and gather your documents. You can check if there are any payments on your old bank account that you don’t want any more. In this case, you should cancel them rather than switching them to your new bank account. Note that your transaction history cannot be transferred to your new account. If you want to keep your old statements, you should get in contact with your old bank.

Afterwards, you can choose your switch date. Make sure that there are 7 working days before your chosen day, and it should also not be a Saturday, Sunday, or a bank holiday. Until that day, you can use your old account just as usual. This means you can still use your cards and online or mobile banking. But don’t set up new payments, including direct debits or standing orders, on your old account during that time period. The reason for this is that they will not be transferred to your new bank or building society. 

To start the switch, just contact your bank or building society to move your account using the Current Account Switch Service.

On the agreed date, your new account will be ready to use, and your old account will be closed. Your balance and your regular incoming and outgoing payments will have been transferred. This includes, for example, your salary, direct debits, standing orders, and also future-dated payments.

Ideally, there is nothing more to do after the switch has successfully been made. However, if anything has gone wrong, you are secured by the Current Account Switch Guarantee. This means that your new bank or building society promises to pay back any interest or fees you are charged if the switch is delayed or processed incorrectly.

Yes, you can still transfer your bank account with an overdraft. If you switch your bank account, your new bank or building society may be able to offer you financial options – such as a loan or another overdraft – to repay the outstanding overdraft with your old bank. Alternatively, they might consider taking on the existing overdraft. However, this depends on their usual lending criteria. Simply put, they will check your creditworthiness and financial situation before granting you a loan or an overdraft. If they do not offer this possibility, you will need to pay off any debt with your old bank first.

Now, you know how easy it is to switch your current bank account. When it comes to interest rates, it’s also worth checking if you’re getting the most from your savings. At Raisin UK, you can currently take advantage of competitive rates on fixed rate bonds. It’s easy to get started. Simply register for a free Raisin UK Account, apply to open a savings account, and deposit your funds.