It’s often been said that we are more likely to get a divorce than to change our current account provider. However, changes in the last decade have made it far quicker and easier to move your current account to another bank.
In the past, many people who could have benefited from such a switch believed that most bank accounts are too similar to make such a move worthwhile. Even today, some people remain worried about the possibility of errors arising from a switch. A report compiled by the Independent Commission on Banking in 2011 found that the simplest way to increase competition among UK banks was to make it faster, easier and more attractive for customers to move their current accounts.
Previously, transferring a current account from one bank to another could be a lengthy process. Under the Current Account Switch Service (CASS) introduced in 2013, it takes only seven working days and your new bank does all the legwork, from notifying your old bank to transferring existing standing orders and direct debits. After the changeover, any payments to the old account are automatically forwarded to the new account. Above all, the process is designed to make customers feel more comfortable about switching.
Since 2013, CASS has successfully processed over eight million switches (to 31 March 2022), and over 120 million payments have been successfully redirected. If you want to reassess your relationship with your current account provider, go to www.currentaccountswitch.co.uk. 48 banks and building societies have signed up to the scheme, representing 99% of the UK’s current account market.
Some banks offer cash-back deals or other incentives to encourage customers to jump ship in their favour. In some cases, these can be worth £150 or even more; nevertheless, it is important to ensure the underlying product is right for you, so make sure you are not distracted by incentives.
Account holders who use an overdraft facility could also benefit from considering a switch. If you have an existing overdraft, your choices might be more limited – some banks might not accept you, depending on your credit record and the size of your overdraft – but on the other hand, you might actually find a better deal with a new bank.
