Switching 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 to use. In a few simple steps, you can transfer your bank account to a new bank or building society and benefit from better interest rates, special account switch offers, or reduced overdraft charges.

The information provided here is for informational and educational purposes only and does not constitute financial advice. Please consult with a licensed financial adviser or professional before making any financial decisions. Your financial situation is unique, and the information provided may not be suitable for your specific circumstances. We are not liable for any financial decisions or actions you take based on this information.

There are a number of reasons you might consider changing your bank account to another bank. Banks and building societies are different in many aspects, including interest rates, overdraft fees, and also customer service. Some of the newer challenger banks offer budgeting and saving features to help manage your money. And it’s now easier than ever to switch bank accounts, with a dedicated service that takes care of transferring payments and balances.

Many banks offer account switching bonuses to attract new customers, typically ranging from £100 to £200. There may be conditions attached to an account switch offer, such as a minimum deposit or a time-limited qualifying period. 

Bonuses can be a welcome extra, but it's worth considering how the rest of the account compares to other products as well. For example, an interest rate offered by a savings account may have a bigger impact over time.

Current accounts don’t usually pay interest on your money. If you’re interested in learning more about earning interest, our guide to switching savings accounts is a good place to start.

The Current Account Switch Service – commonly known as CASS – is a service for account holders 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 is quick and easy, with no manual transfers required.

• Automatic transfer of payments: All regular payments, standing orders, Direct Debits, and your balance will be transferred from your old account to your new account. An automatic redirection is set in place in case any payments are accidentally made to your old account.

• Guaranteed process: CASS provides a guarantee that your switch will be completed within seven working days. The service also includes a Current Account Switch Guarantee, which means that if anything goes wrong in the process, 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. Here is a breakdown of the process:

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. CASS only applies to certain types of accounts. You cannot use it to switch:

• A joint account without the permission of both account holders

• Savings accounts

• ISAs (Individual Savings Accounts)

• Non-sterling payment accounts in the UK. 

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 might 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.

Now, you can get ready for the switch. First, review your existing payments and gather your documents. If there are any payments on your old account that you no longer want, you can cancel them. Note that your transaction history cannot be transferred to your new account, so if you want to keep your old statements, you can contact your old bank or download any documents you require before the switch.

Afterwards, you choose your switch date. It must be at least seven working days away, and it can’t fall on the weekend or a bank holiday. Until that date, you can use your old account as usual. This means you can still use your cards and online or mobile banking. Just avoid setting up new payments (this includes Direct Debits and standing orders), as these will not be transferred to your new bank or building society during the switch. 

To start the switch, contact your bank or building society to request your move.

Your old account will be closed on the agreed date, with your balance , and regular payments transferred to your new account This includes your salary, Direct Debits, standing orders, and future-dated payments.

There is nothing more to do after the switch is complete. However, if anything goes wrong, you are protected 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.

If you’re thinking about changing bank accounts, it might be a good moment to think about your savings too. At Raisin UK, we offer competitive rates on fixed rate bonds, notice accounts, and easy access savings accounts from over 40 FSCS-protected banks and building societies.

It’s easy to get started:

1. Sign up for free. Create your Raisin UK Account online with a simple registration

2. Compare savings offers. Compare the rates and choose a savings account

3. Apply and deposit your funds. Open your chosen account, deposit your funds, and start earning interest on your savings

Yes, it is perfectly fine to switch bank accounts in the UK. Many people set up a current account and stick with it out of convenience. However, with the wide variety of providers and account options available, it doesn’t always pay off to be a loyal customer.

Perhaps your current account no longer meets your needs, or you’ve simply found a better offer elsewhere. You’re free to move your money where it works hardest for you. 

If you’re planning on taking out a loan or mortgage in the near future, it can be sensible to check whether changing bank accounts will affect your credit score.

It’s worth noting that you don’t always have to close your account completely; depending on the terms, there’s nothing to stop you holding multiple current accounts if you’d rather keep some cash in your old account. 

If you do want to switch banks and close your existing account, the Current Account Switch Service offers a quick and safe way of moving your money.

If you use the Current Account Switch Service, your old account will be closed automatically as part of the switch. This is called a full switch. If you’d prefer to keep it open, you’ll need to move everything over manually instead. This is known as a partial switch, and may exclude you from  account switch offers.

A switch using CASS takes seven working days. Your payments, balance, and Direct Debits are moved for you, and you’re covered by the Current Account Switch Guarantee.

Unless you’re opening several accounts in one go, switching from one account to another won’t usually directly affect your credit score. Missing a payment during the process could impact your score, however, so it’s worth keeping an eye on your monthly outgoings during and after the switch. 

Yes, you can switch a joint account, but only to another joint account held with the same person. Both account holders need to agree to the switch and sign the relevant forms.

The information provided here is for informational and educational purposes only and does not constitute financial advice. Please consult with a licensed financial adviser or professional before making any financial decisions. Your financial situation is unique, and the information provided may not be suitable for your specific circumstances. We are not liable for any financial decisions or actions you take based on this information.