How to switch bank accounts

Want to switch your bank account but don’t know how? We break down why it could make sense to switch and walk you through it step by step.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Middle age senior woman sitting at the table at home working using computer laptop clueless and confused expression with arms and hands raised.

Image source: Getty Images

While many of us are more than happy to switch our savings accounts or our car insurance providers on a regular basis, the same cannot be said for our bank accounts. But just like those other financial products, you could be missing out on a better deal if you don’t make a change. We are here to walk you through how to switch bank accounts.

[top_pitch]

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

Why should I switch bank accounts?

A bank account is a bank account, right? Well, not quite. A bank account most importantly needs to suit your financial needs. In some cases, it can even give you a little extra.

If you are thinking about switching bank accounts, here are some things to consider:

  • Do you get an interest rate? While current accounts aren’t known for high interest rates, there are several out there that will pay interest on your balance. So if you tend to have a relatively high balance for most of the month, you could be making money on your money.
  • What are the overdraft charges? If you need to use an overdraft, knowing what kind of interest or fees you will be charged for using this facility is key. If the penalties for going into the red are high on your chosen bank account, then you could quickly end up in a debt spiral with interest charges piling up.
  • Are there any rewards or perks? A big reason for switching bank accounts is to qualify for a switching reward or bonus. Some banks offer a cash incentive to switch, while others include cashback or reward points as part of the package. Perks can even come in the form of exclusive access to products such as regular savers or credit cards.

[middle_pitch]

How do I switch bank accounts?

If you think it is time for a change, then switching bank accounts is pretty simple. Since the introduction of the Current Account Switch Service, this can all be done within seven days.

Here’s how to switch your bank account in four simple steps:

1. Find a new bank account

Research the different types of accounts available and choose the one that best suits your needs.

2. Apply for the new current account

You will most likely need to provide your new bank with two forms of ID and proof of address. If you plan to use the current account switching service, then you will also need your existing bank account details.

3. Choose a switching date

You can choose a date that suits you (as long as it’s not a Saturday, Sunday or bank holiday). The only thing is that it needs to be at least seven working days after your account has been opened.

You can still use your old current account up until that switching date, but don’t set up any new direct debits or standing orders during this time.

4. Start using your account

You’ll need to start using your new account once you reach your switch date. Banks signed up to the Current Account Switching Guarantee will redirect any payments made to your old account and inform the payee of your new bank details.

They will also close your old account, move any direct debits over and tell your employer to pay your salary into your new account.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

More on Personal Finance

Note paper with question mark on orange background
Personal Finance

Should you invest your ISA in a model portfolio?

Which model ISA portfolios offer both high performance and low fees? Hargreaves Lansdown, Interactive Investor and AJ Bell go under…

Read more »

Economic Uncertainty Ahead Sign With Stormy Background
Personal Finance

Is it time to exit emerging markets investments?

Investors may well be sitting on losses from emerging markets funds. Is it worth keeping the faith for a sustained…

Read more »

Personal Finance

Share trading? Three shares with turnaround potential

Share trading has been difficult in 2022, but which companies have turnaround potential? Jo Groves takes a closer look at…

Read more »

Man using credit card and smartphone for purchasing goods online.
Personal Finance

Revealed! Why Gen Z may be the savviest generation when it comes to credit cards

New research reveals that Gen Z may be the most astute when it comes to credit cards. But why? And…

Read more »

Environmental technology concept.
Personal Finance

The 10 best-performing sectors for ISA investors

The best-performing sectors over the past year invested in real assets such as infrastructure, but is this trend set to…

Read more »

Road sign warning of a risk ahead
Personal Finance

Recession risk ‘on the rise’: is it time for investors to worry?

A major global bank has suggested the risk of a recession in the UK is 'on the rise'. So, should…

Read more »

pensive bearded business man sitting on chair looking out of the window
Personal Finance

1 in 4 cutting back on investments amid cost of living crisis

New research shows one in four investors have cut back on their investing contributions to cope with the rising cost…

Read more »

Image of person checking their shares portfolio on mobile phone and computer
Personal Finance

The 10 most popular stocks among UK investors so far this year

As the new tax year kicks off, here's a look at some of the most popular stocks among UK investors…

Read more »