I must admit until recently I have been with the same bank for decades – I’ve had the same account since I was a very small child! These days, loyalty to banks doesn’t pay so there’s no point in staying with your current bank if you can get a better service elsewhere. Due to competition in the finance industry, banks are now offering great incentives to switch to them. I recently switched my old Barclays account to Santander and got £200 for doing it! Here’s a bit of information about switching your bank account, as well as how to do it.
Current Account Switching Service
In the UK, there is a service called the Current Account Switch Service which makes it easy for consumers to switch their account to a new bank. This service was introduced in 2013 by the Payment Systems Regulator (PSR) to simplify the process of switching bank accounts and ensure that it is done in a secure and efficient manner.
When using the current account switching service, customers can switch their account to a new bank in just 7 working days. The service takes care of closing the old account, transferring money, direct debits and standing orders to the new account, and providing confirmation when the switch is complete.
To use the current account switching service, customers must choose a new bank account and provide the new bank with the necessary identification and proof of address. The new bank will then provide the customer with a switching pack, which includes a switch guarantee that promises that all direct debits and standing orders will be transferred to the new account and any errors will be refunded.
The current account switching service also provides a redirection service for a period of up to 36 months, meaning that if any payments are sent to the closed account, they will be automatically forwarded to the new account. In addition to the switch service, many UK banks also offer switching bonuses to customers who move their account to their institution, this could include cash rewards, gift cards or other incentives.
Incentives for switching
Some banks offers as much as £200 if you switch to them using the current account switching service. The amount of the bonus and the terms and conditions for receiving it can vary depending on the bank and the type of account being opened.
To get the bonus you usually have to set up at least two direct debits or standing orders, and pay in a certain amount each month. In some cases, you also have to register and sign into their online banking. Be sure to check these terms carefully before switching to make sure that you can meet them, otherwise you may miss out on your incentive bonus. It’s worth noting that before you switch bank account, it’s important to compare the fees, interest rates, and other terms and conditions of the new account to ensure that it is the best option for your needs.
To switch your bank account to a new bank or financial institution, you will typically need to provide proof of identification and proof of address, as well as complete any necessary paperwork. You will also need to inform your current bank of your intention to switch, and close any existing accounts you have with them. In most instances you will also require your old account’s debit card details if you were issued with one when you opened the account.
Switching your bank account can take up to 7 working days, and during this time, you may need to make arrangements for your direct debits and standing orders. A good idea is to try and pick a week in the middle of the month, when there are less active direct debits and standing orders set up.
How to switch your bank account and claim a bonus
Switching is pretty easy, and can be summed up in just a few steps:
- Choose a new bank account: Compare different bank accounts and choose one that meets your needs.
- Gather the necessary information: You will need to provide your name, address, date of birth, and account information for your existing account and the account you want to switch to.
- Initiate the switch: Contact your new bank and ask to switch your account using the Current Account Switch Service. Your new bank will then provide you with a switching pack and a switch date.
- Close your old account: On the switch date, your new bank will arrange for your direct debits and standing orders to be transferred to your new account. You should also inform your employer of your new account details and close your old account.
- Monitor the progress: After the switch date, your new bank will keep you informed of the progress of the switch. You should also check that all your direct debits and standing orders have been transferred successfully.
- Confirm the switch: After the switch, you will receive confirmation that the switch has been completed.
And that’s all there is to it! By switching your current account to a different bank you can bag an easy pot of cash and hopefully you’ll be as pleased with your new bank as I am!