Until this year, I had never changed my bank account. I was still using the same account, with the same bank, that I opened when I was 18, shortly before starting university. But with the account no longer meeting my needs, and incentives to open a new account, I switched back in May, as mentioned last week.
Most UK banks are signed up to the Current Account Switch Guarantee, and this means that the switching process should be relatively painless. It’ll take about a week, during which your new account will be opened, everything moved across, and your old account is closed. You only have to interact with your ‘new’ bank – they take ownership of the process and will handle the closure of your old account for you.
What gets transferred
As part of the switch, the following will get moved across to your new account:
- Any money in your account. You may also be able to switch if your account is overdrawn, but check your new bank’s terms and conditions.
- All Direct Debit payments.
- All Standing Orders.
Plus, any payments made into your old account will be automatically redirected to your new account. Payees should be notified of this and payroll systems may be able to update to your new bank account details automatically. When I logged into my employer’s payroll system to check my details, my new bank account number and sort code were already there.
What doesn’t get transferred
Basically, anything paid for using recurring card payments, or Open Banking, won’t get automatically transferred. When your old current account is closed, your old debit card will be deactivated and so any payments using this will fail. So any subscriptions that use recurring card payments will need to be amended to use your new card details.
Similarly, if you make payments using Open Banking (for example, to app-based savings accounts like Chip (referral link) or Zopa), these will need re-authorising using your new account.
Incentives for switching
Banks often offer incentives for switching your account – I got a low three figure sum as a reward for switching my account. MoneySavingExpert tracks the current deals on offer – £175 seems to be the going rate, but such incentives come and go. Also, I was able to get a little bit more by initiating the switch using Quidco (referral link), which gave me around £10 cashback in addition to the switching incentive.
Just be aware that whilst almost all banks are signed up to the Current Account Switch Guarantee, not all of them are. If they aren’t, then you may have to manually switch over your payments, which is a major disincentive to switch.