How to switch bank accounts

Around 1.3 million people switched their bank account in the past 12 months, according to figures from the Current Account Switch Service – a 50% increase on the previous year.

NatWest had the highest net switching gains between January and March 2023, followed by HSBC, Lloyds Bank, and RBS. You can bag yourself up to £200 for moving your account.

It should only take seven working days from the time you open a new account for all your money and regular payments to move over from your old one.

In this article, we explain:

• How easy is it to switch bank account?
• Is it a good idea to switch my current account?
• Six simple steps to switching your current account
• Are current account switching bonuses worth it?
• Does switching bank accounts affect my credit score?
• Can I switch my bank account if I have an overdraft?

How easy is it to switch bank account?

The Current Account Switch Service (CASS) was introduced in 2013. Since then, over 9.5 million current accounts have been moved and 137.8 million payments redirected.

The free service guarantees that all your income, bills, standing orders and directs debit cards will automatically be transferred over to a new account by your new bank.

Your old bank will take care of closing your old account. If anything goes wrong, you will be refunded any charges or interest.

In the past, the whole process could take up to 30 days, now it should be done in just seven days.

More than 50 banks and building societies have signed up to the service, covering 99% of current accounts.

You can find out more, and check which banks and building societies are participating, on the Current Account Switch Service website. 

Is it a good idea to switch my current account?

There are a number of reasons why you might want to switch your current account, including the temptation of a hefty bonus. Other reasons might include:

• The original benefits of your existing account have ended, such as a generous interest rate expiring after a year
• You could secure a higher rate on your credit balance
• Lower arranged overdraft charges – find out more about how overdrafts work
• Cashback on purchases using debit cards
• Low or no fees for using your credit card abroad – if you are looking for a the best credit card to use abroad, check out our independent credit card ratings

Switching your current account is a good time to go through your spending and work out which payments you want to keep and which you can cut back on to save money.

Whether it is a good idea for you to switch depends on your individual circumstances. It is important to think about the account that will best suit your needs.

Read more: The best current account switching offers

Six simple steps to switching your bank account

Changing your bank account can be a quick and easy process which should be completed within seven working days if you go through CASS. Here are the steps to take:

1. Shop around for a new current account

When searching for a new account, think about what you want from it. Are you after a packaged or premium bank account that offers extra features? You will likely have to pay a fee for these – possibly £10 to £15 a month.

The features may however include preferential interest rates on arranged overdrafts, car breakdown cover and travel insurance. 

Or does a budgeting-themed bank account appeal? These accounts allow you to divide your money into different ‘pots’ by working out how much you need for bills – rent, gas and electricity, for example – and what is left over for saving or spending.

They sometimes charge a monthly fee but are ideal if you need help managing your money. Check out our highly rated budgeting apps if you are looking for more help.

No matter what kind of account you are looking to switch to, check the fees and interest rates, and also any overdraft limit.

2. Are switching bonuses worth it?

Banks tend to offer incentives such as free cash, vouchers or rewards to entice you to switch to them.

These are worth checking out but you need to see what strings are attached and whether the account is really right for you.

• Eligibility criteria: Some might stipulate that you need to have a certain amount of money coming in or set number of direct debits going out each month to be eligible
• Communication: How often, and by what means, will you want to speak to your new bank or building society? Some of us still like going into a branch – but many enjoy the ease of mobile banking
• Customer service: Do your research online to find out what other customers really think of the service they are offered by their bank and read independent reviews

If you’re looking to change, here’s our round-up of the best switching bonuses on offer.

3. Choose whether you want a partial or full switch

The full switch service is known as the Current Account Switch Service (CASS) and moves all your payments and bills from your old account to your new one.

A partial switch is where you open a new account, perhaps to earn more interest, but don’t close your old account.

It is similar to CASS but the service won’t automatically transfer payment arrangements and does not have to comply with the seven working-day rule.

It is also not covered by the switching guarantee, so there are no guaranteed refunds if anything goes wrong.

4. Apply for an account

To apply for a bank account, you will:

• Need to fill in an application form in a branch or online
• Be asked to provide two separate documents to prove your identity and address – for example, your passport and a recent bill. Banks and building societies have to comply with strict money-laundering rules.
• If you don’t have any of the documents that the bank wants, some will accept a letter from a responsible person who knows you, such as a GP, teacher or lawyer. 

Banks will use a credit check and information on your application form to decide whether to accept or reject you for an account.

If you’re bankrupt or have a record of fraud, you will not usually be allowed to open a bank account. You may also be refused permission to open a current account if you have a poor credit rating. 

Unfortunately, a bank or building society doesn’t have to give a reason if it turns you down. And there’s usually nothing you can do in response.

In some cases, however, you may be able to open a basic bank account instead.

5. Decide on a date to switch

You get to choose when you want to switch but it must be a working day (so no weekends or bank holidays). Remember that it takes seven working days, so allow for that timeframe. 

The old account will still be in working order during those seven working days, but don’t set up new direct debits and standing orders as they won’t be transferred. 

Before you set the switching date, at which point you’ll put yourself on a seven working-day timetable, there are a couple of points to consider:

• First, you should check your regular payments as there may be direct debits for subscriptions that you have forgotten about and now need to get rid of.
• Second, get copies of old bank statements, which may come in useful for tax purposes.

6. Start using your new account

The new bank or building society handles the transfer, so you can sit back and wait until the new bank account is up and running. 

Continuous payment authorities, unlike direct debits or standing orders, are ones when you authorise a seller to take money from your debit card and not your bank.

Your old bank won’t know your new current account debit card number so won’t be able to transfer these payments over, so you need to alter these yourself.

Will switching bank accounts impact my credit rating?

Switching bank accounts can affect your credit score because as lenders like to see evidence of financial stability, but the impact is usually minimal.

If you’re about to apply for a mortgage or a significant loan, it may be better to defer moving your bank account.

This is because lenders will need to get hold of bank statements to verify your income and any delay could hold up the loan or the property purchase.

Searching for a mortgage? Try our mortgage comparison tool.

Can I switch bank accounts if I have an overdraft?

In theory, you can switch bank accounts and close your old account if you have an arranged overdraft limit.

But this will need to be agreed with your new bank or building society, and different providers have different rules.

We explain more in our article explaining how overdrafts work.