Best current account switching deals

Current account switching deals explained

Banks and building societies are always trying to entice new customers, and one strategy many use is offering attractive incentives for switching current accounts.

But, while such deals may appeal to those looking to earn a little extra cash, there are other factors you must consider before moving the home of your everyday banking.

What to consider before switching

Before switching current accounts, take time to assess all of the options available to you. “The right current account [depends] on someone’s individual circumstances, so it’s important consumers are not swayed by free cash alone,” explained Rachel Springall, Finance Expert at Moneyfactscompare.co.uk.

Some of the factors you should consider include:

• Overdraft: An overdraft can be useful for covering unexpected costs. Find out whether a current account offers an arranged overdraft and how much it charges. Some accounts even come with a small, interest-free buffer.

• Maintenance fee: While some current accounts charge a monthly or annual maintenance fee in exchange for access to additional features, you should consider the overall value for money you’re receiving. But don’t worry – there are plenty of options that don’t include maintenance fees.

• In-credit interest: There are some current accounts that pay interest on in-credit balances, which enables your money to grow while still carrying out day-to-day transactions.

However, if seeing a return on your hard-earned cash is a priority, you may want to consider opening a savings account instead. Easy access savings accounts, in particular, offer much of the flexibility of current accounts and there is more choice available.

• Linked accounts: That being said, some providers grant their current account holders access to exclusive products, such as more competitive savings accounts or lower-priced mortgage deals (also known as ‘preferential terms’).

• Discounts: Furthermore, there are current accounts that offer holders discounts at selected retailers, restaurants and attractions. But, while they may add to the appeal of the package, remember these perks are only beneficial if you’re likely to use them.

• Foreign usage fees: If you regularly travel and use your current account abroad, you may want to consider an option that charges no currency conversion or foreign transaction fees. Find out more about spending abroad with our travel money comparison guide.

• Insurance: Some packaged bank accounts also include travel insurance, breakdown cover and/or gadget insurance. However, be sure to check any policy is comprehensive enough to cover all your needs.

How to switch current accounts

After finding an account you wish to move to (and checking you can meet any terms, conditions and eligibility criteria), you’ll need to initiate the switching process with your new provider. A vast number of switches in the UK are facilitated by the Current Account Switch Service.

How long does it take to switch current accounts?

Switching via the CASS takes seven days; you’ll be asked for a date by which you want the switch to be completed and can continue using your old account up until this point.