04 Nov 2024

How to switch your bank account

Switch your bank account in just seven working days. Here, we explain how to switch, the best time of the month to do it and what to do if something goes wrong

Chiara CavaglieriSenior researcher & writer

In this article

Why switch bank accounts?

Not all banks are the same and some offer far higher interest rates, and lower overdraft fees than others, not to mention better customer service.

Better still, the Current Account Switch Service means that your new provider does most of the admin for you.

Here, we reveal the banks offering the biggest incentives to switchers and the pitfalls to look out for.

Best bank account switching bonuses

We don't recommend switching just because a bank is offering short-term perks – we think you should focus on interest rates, overdraft charges and its Which? customer score.

But if you're already looking to move, it's worth seeing what incentives are on offer:

Provider	Account name	Switching bonus	Which? Customer Score
Lloyds Bank	Club Lloyds, Club Lloyds Silver, Club Lloyds Platinum account	£200	72%
NatWest	Reward, Reward Silver, Reward Platinum, Premier Reward	£180	72%
First Direct (WRP)	1st Account	£175	82%
Nationwide Building Society	FlexDirect, FlexPlus	£175	78%
The Co-operative Bank	Current Account, Everyday Extra	£150	73%
Santander	Edge, Edge Up, Everyday	£150	70%

Table notes: Data correct as of 4 November 2024. Which? customer score: Our rating for customer satisfaction, based on feedback from real customers. The score is made up of a customer's overall satisfaction with the brand and how likely they are to recommend that brand to a friend. We surveyed 4,550 members of the general public in August 2023. Our full table includes scores and star ratings for all banks, including those chosen to be a Which? Recommended Provider (WRP).

Bank switching offer reviews

Lloyds Bank - ends 10 December

Club Lloyds charges a £3 monthly fee that is waived each month you pay in £2,000 or more. In addition to the Club Lloyds fee, the Silver account charges a £11.50 monthly fee and the Platinum account charges a £22.50 monthly fee.

To qualify for the switching bonus you must use the Current Account Switch Service and move across at least three Direct Debits.

The £200 will be credited to your account within 10 working days of you starting your switch.

You're not eligible for this offer if you've previously received a switching reward since April 2020 for switching to any Lloyds, Bank of Scotland or Halifax Bank account.

NatWest

To qualify for the switching bonus you must use the Current Account Switch Service. Within 60 days you must pay £1,250 into your account and log into the NatWest mobile app.

Direct debits are not specifically mentioned in the switching terms and conditions, but to earn rewards you need to have at least two direct debits that are each £2 or more.

The £180 will be credited to your account within 7 calendar days of meeting the criteria.

You're not eligible for this offer if you've ever previously received a current account switching bonus from NatWest, RBS or Ulster Bank.

First Direct

To qualify for the switching bonus you must use the Current Account Switch Service and move across at least two Direct Debits or standing orders. You must also deposit £1,000 into your account, make at least five debit card payments and log on to online banking within 30 days.

The £175 will be credited to your account on the 20th of the month after you meeting the switching criteria.

You're not eligible for this offer if you've previously held any First Direct financial product, or if you opened a HSBC current account on or after 1 January 2018.

Nationwide Building Society

To qualify for the switching bonus you must use the Current Account Switch Service and move across at least two Direct Debits or standing orders. Within 31 days, you must also deposit £1,000 into your account and make a debit card purchase.

You're not eligible for this offer if you've previously received any switching reward, or held a Nationwide current account since 18 August 2021.

The Co-operative Bank

To qualify for the switching bonus you must use the Current Account Switch Service and move across at least two Direct Debits or standing orders. Within 30 days, you must also deposit £1,000 into your account, make at least 10 debit card purchases, register for online bank services or mobile app and set up the debit card in a digital wallet (Apple Pay, Samsung Wallet or Google Pay).

The £75 will be credited to your account within 7 says of you meeting the switching criteria.

To receive a further £25 a month for three months you must deposit £1,000, make at least 10 debit card purchases and have at least two active Direct Debits each month.

You're not eligible if you've previously benefitted as a new customer from this, or any previous Co-operative Bank current account switch offers since 01/11/2022

Santander

To qualify for the switching bonus you must use the Current Account Switch Service. Within 60 days of requesting to switch you must deposit £1,500 into your account and have two active Direct Debits.

The £150 will be credited to your account within 90 days of switching, if you meet the terms and conditions.

The Santander Edge account charges a £3 monthly fee and the Edge Up account charges a £5 monthly fee.

You're not eligible for this offer if you've previously benefited from a Santander switch offer since September 2021.

How do I switch bank accounts?

There are plenty of reasons to switch bank accounts, as our video explains:

Most banks have agreed to use the new switching service, which means it should take just seven working days to switch you over from your old account once the new account is opened.

If you want to check which banks and building societies are participating, you can search by name here on the Current Account Switch Service (CASS) website.

The switching service is largely automated. The step-by-step process below details exactly what happens.

Step 1: find your new bank account

If you don't yet have an account in mind, you can skip to our advice on choosing the best current account below.

Step 2: apply for your chosen account

When you apply to the new provider, it will undertake its normal account-opening procedures.

Banks and building societies have to comply with strict money-laundering rules, so when you open an account you'll be asked to provide two separate documents for proof of identity and proof of address.

You'll then need to complete a Current Account Switch Agreement form and a Current Account Closure Instruction form, provided by your new bank or building society.

Step 3: know your rights

Your new bank or building society will confirm whether it's using the Current Account Switching Service, which is backed by the Current Account Switch Guarantee.

This guarantee means that it will correct any problems with payments as a result of the switching process.

Step 4: choose a switch date

You'll be able to agree a convenient switch date for you with the new bank or building society.

It can't be a Saturday, Sunday or a bank holiday, and must be at least seven working days after your account has been opened.

Once this date has been agreed, your new bank will provide confirmation that the switch has begun and will be completed on the agreed switch date.

You'll continue using your old current account up until the agreed switching date, although don't set up new payments such as direct debits and standing orders during the seven working days leading up to your agreed switch date.

Your new provider will contact you if there any issues during this period.

Step 5: start using your new account

On the switch date, your new bank or building society will be responsible for moving your incoming and outgoing payments, and transferring any money to your new account, before closing the old account and sending confirmation that the process is complete.

More on switching bank account

Applying for multiple current accounts can affect your credit rating in the short term – because banks must run credit checks for the overdraft facility – but having one or two credit application searches will have minimal impact.

Ideally, you should spread credit applications out, so if you're applying for a mortgage or car finance it may be best to wait until you've secured this before switching bank accounts.

It can be beneficial to have a longstanding relationship with your bank when you apply for credit but lenders are far more interested in your actual credit history so don't let this put you off switching to a better bank account.

Find out more: How to check your credit score for free

Yes, having an overdraft isn't a barrier to switching but you'll need to pay off any debt with your old bank.

Whether or not the new account provider offers you an overdraft facility and whether or not it matches your current overdraft limit will depend on your circumstances.

If you have a record of managing your overdraft well, most banks will consider taking the existing overdraft on.

If the new provider won't let you move your existing overdraft across, you can still switch but you will need to discuss a way of paying off your overdraft with your old bank.

Some may agree to keep the old account open to help you pay it off gradually but others may insist you clear the debt before you switch.

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 (CASS).

The Current Account Switch Guarantee outlines how the switching service works and what rights you have if anything goes wrong with the switch.

All providers offering the Current Account Switch Service will abide by these rules:

The service is free to use, and you can choose and agree your switch date with the new bank.
The new bank will take care of moving all your payments going out (eg direct debits and standing orders) and those coming in (eg your salary) to your new account.
Your new bank will arrange for the closure of your old account and for the remaining balance to be transferred to your new account on the agreed switch date.
For 36 months, the new bank will arrange for payments accidentally made to your old account to be automatically redirected to your new account. The new bank will also contact the sender and give them your new account details.
The responsibility lies with the new bank to contact you before the switch date if there are any issues.
The new bank must refund you for any charges incurred as a result of a direct debit or standing order not having been successfully transferred to the new account.