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Benefits of switching current accounts

Gone are the days when changing banks was difficult. If you’re not satisfied with your current bank, here are some of the benefits of switching current accounts.

1. Rewards and perks

Some banks will give you a one-off cash bonus for switching. You might also be offered access to discounts and offers.

Other current account switch incentives may include:

  • hotel discounts

  • gift vouchers

  • travel cards

While incentives such as these are attractive, it’s important the account you're switching to meets your personal financial needs over the long term so you don’t end up losing out.

2. Access to better savings rates

Some current accounts give you access to regular savings accounts that offer attractive rates of interest. Double check the finer details – there’s usually a limit on the minimum and maximum amounts you can put away in savings each month. This may impact whether or not an account suits you. There may also be limits on how you access the money. So look into the terms and conditions to make sure they suit you.

3. Reduced overdraft fees

If you use your overdraft facility often, you may be able to get a better deal by switching. Look at the rate of interest charged on an arranged overdraft, and if there's an amount you can borrow interest-free.

Paying less interest each month if you go overdrawn could help you clear your debts sooner and get back in control.

Explore: How to get out of your overdraft

4. Better support and customer service

Does your current bank offer helpful apps, secure online banking and phone support? Is there a local branch you can pop into?

Some banks have a strong reputation for dealing with customers. By switching provider, you may find you get a better service.

5. 7 working day switch guarantee

The Current Account Switch Service has a 7 working day switch guarantee. This means your new bank must arrange to transfer your:

  • existing outgoing payments, such as Direct Debits

  • incoming payments, such as your salary

All you need to do is agree to the ‘Current Account Switch Agreement’ and the ‘Current Account Closure Instruction’.

In the unlikely event that anything goes wrong with the switch, your new bank will refund you if you’re left out of pocket.

None of your regular payments will be affected because of a switch. And, if required, any payments sent to your old account by mistake will be redirected to your new one.

6. No harm to your credit rating

Some people are put off switching current accounts because they think it will damage their credit rating. Switching won’t impact your credit rating as long as you repay an outstanding overdraft on your old account.

If there are any issues with payments as part of the switching process, your new bank will correct them and make sure your credit rating isn’t affected.