Best current account switching deals

Yes, and your new bank may offer ways to help pay off your overdraft (subject to usual lending criteria). The industry regulator, the Financial Conduct Authority, now requires current account providers to put overdraft eligibility checking tools on their websites, so customers can see if an existing overdraft is likely to be acceptable to a new provider.

Yes, but only up to seven working days before the agreed switch date. After that only certain elements can be cancelled.

No, it's an entirely free service that's been designed by Payments UK (formerly the Payments Council) and run by Bacs – a not-for-profit organisation owned by the New Payment System Operator – to make switching quick and simple. Why not take advantage of it?

Every time you make an application that involves a hard credit check this will leave an impression on your credit file. In some cases, your credit score may dip, especially if you apply for multiple sources of credit in close succession. Generally a single credit switch made outside of any other credit applications should have little impact in your credit score.

Closing accounts is often believed to be a good way to improve your credit score. However, in some circumstances it can actually hurt your scoring instead. An important factor in credit scoring is the proportion of total balances vs. your total credit limit. Paying off credit lowers this proportion, improving a credit score, but closing an account will likewise reduce your overall credit, making the proportion of debt higher and as a consequence it may negatively affect your credit score.

Closed bank accounts (and credit card accounts too) will remain on your credit history for seven to 10 years, depending on the way they were operated and closed. Having closed accounts on your credit history is quite normal and enables a more accurate picture of your financial history for credit scoring.

Yes. As part of the Current Account Switching Service, your old bank will close your previous current account within seven days of a successful transfer. In addition, any monies sent to your old current account will be automatically diverted to your new account.

There is no limit to the number of bank accounts you can have. While the standard check that banks do when you open a new account will appear on your credit history, this has either a very small or no impact at all on your credit score. In addition, switching accounts from one provider to another will be recorded, but again there is little to no impact on your credit score no matter how many times you do this. In fact, if you open a basic bank account or similar bank account designed for those who have a poor credit score, these will not appear on your credit history at all.

Yes, you can switch more than one current account, but these need to be done one at a time.

You can switch bank accounts as often as you wish. If these accounts require a credit check you may find your credit score dips if multiple applications are made close together. You could also find that the bank you want to switch to has restrictions for those that have previously been customers.

Basic accounts (also known as bad credit bank accounts) and prepaid accounts will not need the provider to run a credit check to open. Basically, these are designed for those who have a poor credit score and while you will likely get an ATM card, these forms of account will not allow you any form of credit or overdraft. Often the cards issued will be debit-only, meaning that if you try to buy something but lack enough funds in your account, then the transaction will be refused.

On the other hand, if you are opening a standard account (i.e. one that is not intended for consumers with bad credit scores) or one that includes a package of benefits (sometimes called packaged or premium accounts), then the bank will be running a credit check to confirm your identity and assess your ability to handle credit.

Banks cannot see details of your bank accounts when you apply or switch a bank account or if you use a digital banking app that brings all your accounts into one place. The only times they may be able to share information between each other is in suspected cases of fraud/ illegal activity, or if a court order or warrant has been granted for this to happen.

1. A bank cannot see your bank account details when you switch. When you apply or switch bank account, a credit check (if applicable) will show on your credit file. However, your bank account balance or overdraft used or available are not shown, unlike with loan products, which show an outstanding balance or an available amount of credit.

2. Banks do not share details of accounts between them on money management apps. There are digital banking apps that enable you to see all your bank accounts in one place – this is often referred to as ‘Open Banking’. This is only allowed with your direct permission (this is part of the sign-up process) and the individual banks included cannot see your other bank accounts.

3. Banks may share details if they suspect fraud or illegal activity. Banks do co-operate in anti-fraud initiatives, which might result in them sharing details where they think illegal activity or an attempt to commit fraud is taking place.