How do I Switch my Bank Account?It might seem a complicated thing to do but switching bank accounts is actually quite simple. Since new legislation was brought in a few years ago, banks have come on board to make account transfers happen quickly and efficiently. Once you opt to switch, you can now expect it to be done within 7 days and, what’s more, you don’t have to worry about swapping over things like direct debits.
Decide Who You Want to Switch ToThe good news is that banks are now competing for your business. That means there are some great offers out there, including financial incentives, to get you to swap. Ideally, you should be looking at what you need and checking that against what’s on offer. It is quite difficult to do a like for like comparison with many accounts but as long as you match it with your needs you should be able to make a more informed decision. For instance, if you spend a lot of time in the red you might want to choose a bank that has better charges for overdrafts.
Contact the BankYou will need to contact your new bank, either by popping into a branch or going online. You will fill in their application and open up an account. You should choose a bank that is using the Current Account Switch Guarantee which ensures everything will be swapped over from your old account within 7 days. Most of the major banks have signed up to this scheme. There’s a form to complete for this and, if you are closing your old account, you will need to complete a form for that as well.
What Happens Next?Once the forms are done, a switching date is agreed and the process begins. You should get notification that everything has started and a confirmation that it will be done by the agreed date. Up until then you will continue using your old account. On the switch date, your entire account should swap over to the new provider and the bank is responsible for ensuring that items such as direct debits and payments from your employer are included. That also means that, for a period of 36 months afterwards, any payments made to your old account by mistake are transferred to your new one.
To switch accounts, you only need to fill in the application forms and then let the bank get on with things. Many people take the decision to withdraw some hard cash just in case there are any problems so that they aren’t unduly inconvenienced.
What If I’m Overdrawn?It doesn’t necessarily mean that you won’t be accepted. Normally there needs to be a comparable overdraft facility and you need to have shown that you handle it well. The Benefits of Switching Bank Account
There are a lot of benefits of switching bank accounts and we should all consider doing it at some time or other. You can end up with an account that is better suited to your needs but also get a bonus from the bank which can put up to £150 into your pocket. It only takes seven days to achieve and your new bank will handle all the difficult details such as swapping over direct debits, regular payments and your wage packet.