Your Existing Bank Details
If you’re switching your current account, your new bank will need your account number so that they can switch your direct debits and standing orders for you.
With the current account switch guarantee, banks and building societies signed up to the scheme, will also redirect any payments made to your old account and inform the payee of your new bank account details.
How Long Does It Take To Change Bank Accounts
You could find a current account that suits you in less than 10 minutes with our online comparison tables and see how different accounts measure up at a glance.
Under the banks switching guarantee, your new bank account could be up and running within seven working days. That means all your direct debits and other payments automatically transferred across when you are changing bank accounts.
You are able to switch banks accounts even with the current Covid-19 restrictions in place and the process should not take any longer as it is all handled electronically, even if you do not actually bank online.
Read on for our easy step-by-step guide and see how to switch bank accounts.
How To Switch Banks: A Step
Switching banks is easier than you think. Lets walk through the steps on how to move your checking or savings account to a new financial institution.
Shane SteeleJanuary 26, 2022
In This Article
There are several reasons why you might be looking to switch banks. Maybe youre moving to a different city and need a bank thats local, or its possible youre looking for one with lower fees and better interest rates.
Whatever the case may be, switching banks is straightforward and easily done with the correct information. Consider this your switching banks handbook as it teaches you all of the steps for a smooth transition.
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Possible Difficulties With Switching Banks
Before making the switch, consider that there may be some negative implications of moving your account and make sure you are prepared to deal with them.
Ask yourself the following questions before proceeding:
- How likely are you to forget to switch an automatic payment? How much will that cost you? Is that risk worth it? The longer you’ve had your current account, the more accounts and automatic payments might be linked to it and the more effort it will be to switch.
- Will opening a new account result in a hard credit pull? If you’re in the middle of trying to get a mortgage or an auto loan, you shouldn’t risk this ding to your credit score.
- Is the increased interest rate worth the trouble? If you’re moving your account to chase a higher interest rate, keep in mind that you’ll lose interest in the few days it takes your money to transfer from the old account to the new one. Use an online interest rate chaser calculator to determine whether the new interest rate is high enough to be worth your hassle.
What Do I Need To Decide When I Change Bank Accounts
You need to decide what you are looking for in a new current account bank account.
Do I need current account interest on my bank account?
If you are in credit the majority of the time and/or have a high balance in your account, you could look at a high-interest or cashback account to make a better return on your day-to-day spending and savings.
Do I need a current account with low interest rates?
If you want to use a bank account to borrow money, then you could look at some of the most popular bank accounts to see what rates they offer. If you make use of an overdraft regularly some of the most popular accounts will usually offer competitive rates on authorised overdraft borrowing, dependent on your credit status.
What perks and rewards could I get with a new current account?
Packaged accounts offer added extras like travel insurance, breakdown cover and exclusive discounts in exchange for a monthly fee. If you can find a package that works out cheaper than buying all the perks, that you actually want, separately then it could be a good money-saver. Now that travel is starting to open up again, packaged accounts are starting to look better value once more.
Can I swap to a new current account if I have bad credit?
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Enroll In Online And Mobile Banking
Youve got a new bank account, but now you need to be able to access it. This is when to consider signing up for online and mobile bankingtypically, these are the only options youll have if you decide to bank at an online-only institution.
Your bank or credit union can help you get set up with online banking. Before using this feature, you may need to enroll. Once thats done, you can visit your banks website, create a user I.D. and password and log in to verify your account.
Next, you can download your new banks mobile app. You should be able to use the same user I.D. and password for mobile banking that you do for online banking. Depending on the bank, you may have to set up multi-factor authentication or verify your account via email or text to get started using online or mobile banking features.
How Can I Find A New Bank Account
You can switch bank accounts to find a new current account that offers better rates, more perks or lower interest rates. Switching banks accounts is simple and should be completed within seven working days thanks to the CASS which banks and building societies have signed up to.
The Current Account Switch Guarantee means that your new bank will do all the work for you, moving across your existing direct debits, standing orders, and payment from salary or pensions. It is available for both personal and business current accounts. If anything goes wrong the banks involve are obliged to reimburse you, so there is no risk in moving your bank account.
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Find A New Bank Or Credit Union
To make the process of moving your money go smoothly, do this before closing your existing account. In other words, dont get upset about the poor customer service at your current Big Bank, pull your money in a fit of anger, and then wonder what youre going to do with the wad of cash in your hand. .
Do your homework and select a bank that has the features that are most important to you. Moving to a smaller bank may require some sacrifices, like the lack of a branch on every corner, an ATM in every city, or 10 different rewards credit cards to choose from. But youll also discover that online banks and have many benefits including:
- Higher interest rates
- Lower loan rates
- Convenient, no fee ATM network that provides service in as many locations as a big bank
Rest assured that every bank, regardless of size, is FDIC insured. Credit unions have the same backing, up to the same amounts, through the NCUA .
You can also make this move profitable. There are several banks that offer a cash bonus when you open a new account. Two of our favorites are HSBC and Chase.
Sort And Update Your Automatic Payments And Deposits
This step is where it gets tricky and is why many people struggle with transferring their accounts. It is essential to take your time with untangling your payments and transactions. Doing this right could help you save a lot of money and prevent any unnecessary and stressful complications down the line.
How do you do this? You should consider pulling up the list of your yearly transactions at your local bank or online. It can help you see all the transactions you need to move to a different account.
If you are wondering how to switch bank accounts, here is a step-by-step guide. The first thing to set up is your direct deposits. Switching your account with your employers accounting team is the first step. Make sure not to forget any other direct deposits you make monthly. For example, you should transfer any irregular income you might have, freelance work, or alimony payments.
The next step is taking care of automatic or recurring payments. For example, if you have set up automatic bill payments, you should move them to your new account. The same goes for subscriptions and recurring transfers. The latter could be quarterly insurance or your gym membership.
This is also an excellent opportunity to review your spending habits. It can help you eliminate any recurring payments you dont want to keep and create a new budget plan.
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How To Switch Banks
Your bank is driving you nuts.
Youre fed up. Youve hit your limit and you cant stand it anymore.
The fees and surcharges. The inconvenient ATMs. The pitiful interest rates. Youve wanted to switch banks for a while, but youve been putting it off because youre not sure how to do it.
Switching banks isnt as easy as switching on a light, but its not rocket science either. The biggest hurdle is taking time to complete all the tasks. Well walk you through it step by step.
Start Using Your New Account
Once your new account is open, funded, and receiving your income, start using it to pay your expenses. Do not make any withdrawals or transactions from your old account.
Dont close your old account just yet. Leave some cash in it in case you forgot about a payment or automatic debt. Monitor your old account for at least two statement periods. If you moved all your debits and credits to the new account, your old account shouldnt have any activity. If any transactions appear, resolve them right away.
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Make A List Of Your Automatic Payments And Deposits
Automated bill payments, direct deposits and recurring transfers can simplify your financial life. As you switch banks, its essential to make sure that you properly switch over these transactions to your new accounts.
For example, you could run into a problem if your paychecks are still being sent to your old account or you have an automatic bill payment processed for a closed account. And youd also need to change banks for Social Security direct deposit if you receive those benefits.
As you plan to change banks, make a list of:
- Automatic deposits. This includes direct deposit of paychecks or business income, alimony or child support payments, government benefit payments and recurring transfers from linked bank accounts.
- Automatic bill payments. This includes mortgage payments, utilities, credit cards and student loans.
- Recurring subscription payments. This includes streaming services, gym memberships and other transactions you pay automatically.
- Recurring transfers. This includes transfers to externally linked deposit accounts, retirement accounts and investment accounts.
You should also make a note of any places your current bank accounts are linked to online. For example, if you use a mobile wallet app to shop online, youll need to update your bank account or debit card information once your new account is open.
What Happens To Payments That People Send To My Old Account
All incoming and outgoing payments will be automatically redirected to your new account. Each time a payment is redirected, an automatic message is sent back to the originator advising them of your new account details so they can update their records.
Some organisations may contact you directly to confirm your details have changed. If you do not want your new details to be given to someone who sends a one-off payment, then please let us know.
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Set Up Automatic Payments And Direct Deposit
Getting this taken care of will be a huge monkey off your back. Make sure you dot all your is and cross your ts with this part of the process.
- Direct Deposit. Your employer should have an easy form you can fill out to change your direct deposit information. This usually can be done by the next pay cycle, but make sure to ask how long it will take to process.
- Automatic Payments. Things can get a little tricky here. Make a list of all of your payments that are automatically debited from your account. Then figure out which ones were set up through the company youre paying, and which were set up through the Bill Pay system at your old bank. Be sure to set up the proper online payments through your new bank, and change the account information for payments automatically debited by companies.
- Paypal. Last, but not least, switch your banking information in any online payment systems you have set up.
Do I Have To Close My Old Current Account
No, if you don’t want to close your old account, you can do a partial switch instead.
The main downside is that you aren’t covered by the service guarantee, so you aren’t automatically refunded for any charges incurred as a result of a direct debit or standing order failing to transfer properly.
It may also take longer than seven days to complete the switch.
And, the best switching incentives are often reserved for customers who use the full switch .
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Update Your Automatic Payments And Direct Deposits
Now that your new account is open and your funds are moved over, youll need to transfer all of your automatic payments and deposits over too. Use this time to get rid of old subscriptions and services you dont use, and save yourself some money that can be used instead for an emergency fundorhigh-yield savings account.
Once youve decided what you want to keep and what to cancel, youre now ready to update your account information. Visit the billing or payment center for each service or product, remove your old bank account information, and enter your new account numbers. If you stumble into any problems, reach out to the companys customer service department to resolve the issue.
Also, be sure to work with your employer tochange your paycheck detailsif you use direct deposit in order to be sure your hard-earned money routes to your new account.
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Figure Out Where To Open Your New Account
For most of us, banks and credit unions, their not-for-profit equivalents, are key to our financial lives. But with so many options, how do you choose a new one when your old one no longer suits your needs?
Think about the features you want. Finding a bank or credit union with branches and ATMs near you might be important, or maybe youd rather go with an online bank that has higher interest rates and a great ATM fee reimbursement program. Whether its brick-and-mortar or online-only, youll want a bank with low fees and high interest rates, especially on checking and savings accounts. Make sure the new bank has all the services you want.
Remember you don’t need to have all your accounts in one place. If youre open to a bit of juggling, you can optimize your finances by opening accounts at different banks. For example, you can take advantage of a high annual percentage yield with an online savings account while keeping a checking account open at a traditional bank that offers in-person customer service when you need it. Keep your number of accounts manageable to avoid accidental overdraws. If keeping your accounts under one roof is important to you, check out our list of best banks for checking and savings accounts.
Aspiration Spend & Save Account – Aspiration Plus
How Do I Switch Current Account
There are a few simple steps involved in switching current account:
Run a comparison of current accounts available and any incentives they offer
Read the fine print before switching
Apply to your new bank, and they will transfer your cash, direct debits and standing orders across
Dont close your old bank account until your new current account is open
“I’d been with my previous bank for about 5 years, after first opening my account when I moved to the UK. I’d never thought of switching because I didn’t see any benefits in going through the process again. I also wasn’t unhappy with my previous bank .I didn’t realise that other banks offered incentives like cash or points to switch accounts, and that the process was much easier than opening my first account, as there was no need to go into a branch. I did some research and found a bank offering what I thought was the best deal at that time. So I applied for a new account with them online and then used the Current Account Switch Service to switch accounts. The process took a few weeks, but I didn’t have to do anything as I was assured all my balances and direct debits would be moved for me. And they were!
Six months later, I’ve just switched to another bank offering a great bonus. The rewards have certainly been well worth my time, and I would consider switching again for another great deal.” – Ian from London
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