In the digital age in which we live, switching bank account has never been easier or quicker – largely thanks to the new Current Account Switch Guarantee. Here we explain what it all means and how to switch bank account online.
What is the Current Account Switch Guarantee?
This new service does pretty much what it says on the tin, allowing you to switch from one bank or building society to another with minimal hassle. It's supported by most major banks (currently 43) and means you can switch in as little as seven days.
Here are the promises of the guarantee:
• It's free to use and you can choose a date to switch
• Payments going in and out of your old account, including direct debits and standing orders, will be automatically moved
• Any money you have in your old account will be transferred on the switch day
• Accidental payments made to you old account will be redirected for 36 months and the sender will be given your new details
• You will be contacted if there are any issues before the switch date
• If anything goes wrong, any interest or charges made on your old or new account will be refunded
Note: Overdraft transfers are subject to your credit status
How to switch bank account online
You first need to choose which bank or building society you want to switch to. Consider things like interest rates, overdrafts and some may even pay you to switch. Get recommendations for the best bank accounts right now.
Look out for the Current Account Switch Guarantee logo (above) or check this list of participating banks.
You then need to agree to the 'Current Account Switch Agreement' and the 'Current Account Closure Instruction' – provided by your bank or building society. This means the switch can go ahead but don't choose a Saturday, Sunday or a Bank Holiday.
You'll probably need to give your new bank your existing account details such as the 16-digit number from your debit card.
Choose you're switch date which can be as soon as seven days but you can delay it up to 30 days if you like.
Once you have applied for your new account with the Current Account Switch Guarantee you simply need to wait for the switch date. The system means that everything will be taken care of and you can carry on using your old account as normal until the switch date.