What is the Current Account Switching Service?

The Current Account Switch Service (CASS) has made it easier and faster than ever before to switch bank accounts, facilitating hundreds of thousands of switches each year since it first launched in 2013.

The service allows participating banks and building societies to complete the process of switching a customer's old bank account over to a new account within a maximum of seven working days. Beforehand, this process could take as long as 30 working days.

Customers will also be refunded for any interest or charges on their old or new bank account if anything goes wrong during the switching process and will be able to choose a convenient switch date with their new banking provider. The service is free to use and makes it more convenient for customers to switch when finding a better deal elsewhere.

How to switch bank accounts

1. Compare accounts

Before making the switch, it’s important to carefully compare any potential new current accounts to make sure it’s right for you. Make sure to consider all aspects of the account, which may include any fees, interest rates or if it offers an arranged overdraft.

2. Check you’re eligible

You’ll also need to check the provider is covered by the service, and if you’re eligible to apply. Some accounts may need a certain number of Direct Debits to be transferred over and could require a minimum deposit each month, for example.

It may also be worth reviewing any existing payments with your current account and to close any that you no longer use instead of transferring them across.

3. Begin the switch

If everything checks out, you can then sign up for the account with the new provider and choose the day you’d like to switch. From a specified date, your new provider will begin the process of moving your account across, including any Direct Debits and standing orders.

Bear in mind you’ll be able to use your old account up until the agreed date though it’s best not to set up any new payments around this time as they may not be processed. After the switch has completed, any payments sent to the old account should be redirected for up to three years.

Switching with an overdraft

If you’re switching to an account offering an arranged overdraft, you may be able to move across an existing overdraft, though it’s worth checking with your new provider first. This is typically decided on an individual basis and can depend on your previous records with paying off overdrafts.

Keep in mind that if your new account has a smaller overdraft limit, you’ll likely need to repay the difference before being able to switch.

If you’re unsure how to compare overdrafts or the types available, our guide can provide more information.

Can you switch a joint bank account?

Broadly speaking yes, but only if both account holders agree. Aside from this, switching a joint account is very similar to switching a normal current account but requires both parties to verify their ID and address before proceeding. However, be aware you won’t be able to move from a joint account to an individual account.

Can you switch student bank accounts?

Again, this depends. If you have a student current account and want to switch to another student-based option, keep in mind that certain accounts are only open to first-year students.

Those that do allow older students to apply may also have eligibility criteria such as having a certain amount of time left of your studies. What’s more, some providers won’t allow you to move to a student account from a standard current account.

Once you’ve found an option you’re happy with (and eligible for), the process for switching is the same as with other current accounts.

Can you switch business bank accounts?

Yes, you can switch business current accounts, but there are specific criteria that differ from switching a personal account. For instance, you’ll need to provide:

• The name and address of the business, as well as a recent utility bill
• Any funding requirements
• A Companies House registration number
• A certificate from HM Revenue and Customs (HMRC)

You’ll still need to switch between participating providers; however, you also must have fewer than 50 employees and an annual turnover of less than £6.5 million to use the service. Furthermore, certain types of businesses may need to supply additional information in order to switch.

Current account switch incentives

In order to entice customers, providers can offer cash switching incentives for limited periods throughout the year that often exceed £100. These offers can be open to new or existing customers, and are a good way to boost your finances, however, they usually require meeting certain criteria as part of the switch. These could include:

• Switching to a particular current account with the provider. This could include current accounts charging a monthly fee
• Depositing a minimum amount into the account each month
• Transferring over a certain number of active Direct Debits
• Logging on and using online banking with the new provider
• Making a certain number of debit card payments

It’s therefore important not to be swayed by the lump sum alone and to weigh up other aspects of an account when deciding if its right for you.

How long does it take to switch bank accounts?

As part of the service, switching your current account is guaranteed to take a maximum of seven days (not including weekends or bank holidays) after you sign up with your new provider. As you pick your switch date, you could choose to make this later if you wish.

If, for whatever reason, something goes wrong during the switching process, the service guarantees that your new provider will refund any interest lost or charges incurred as a result of the delay.

What happens to my old bank account when I switch?

When using CASS, your new provider takes care of setting up your new account, while your old provider closes your old one. Any money in your old account is automatically transferred across, as are any Direct Debits and standing orders (both in and out of the account).

In the seven days leading up to your chosen switch date, you should receive correspondence from your old bank or building society agreeing to the switch, including confirmation that they’ll close the account.

Does switching current accounts affect your credit score?

It could, but only if you’re moving between accounts too frequently. When you switch accounts, your new provider may run a credit check if the account has an overdraft as this is a form of borrowing.

While these checks only lower your score temporarily (and disappear after a while), repeatedly switching current accounts could see your score take a more noticeable hit as multiple applications would appear on your report at once.

How often can you switch bank accounts?

You can switch bank accounts as many times as you’d like, but as previously mentioned, moving between accounts too often can affect your credit score, which may impact your ability to apply for other financial products.

Also consider some providers won’t allow you to qualify for their switching incentives if you recently benefited from one of their offers.

How soon after opening a bank account can I switch?

While some providers may allow you to switch immediately after opening an account, others may require you to meet certain conditions before leaving. This is especially true if there’s a switching incentive involved, with these offers usually requiring you to keep the account open for a specified period.

If you’re planning on moving between accounts quickly, make sure to study the terms beforehand to avoid being locked in.

Participating banks

Over 50 banks and building societies have signed up to the service, which covers almost the entire marketplace.

To help you identify these participating providers, look for the Current Account Guarantee trustmark in their branches or across their websites.

Alternatively, you can check the list below to see the banks and building societies that have signed up.

Source: Current Account Switch Guarantee