Gone are the days when changing banks was difficult – if you’re not satisfied with your current bank, here are some of the best 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 and travel cards. Packaged accounts often come with breakdown cover and mobile phone insurance, although you’ll usually be charged a monthly fee.
While incentives such as these are very attractive, it’s important that 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 offering attractive rates of interest. There’s usually a limit on the minimum and maximum you can put away in savings each month.
Explore more: How to save money
3. Reduced overdraft fees
If you’re someone who uses your overdraft facility fairly often, you may be able to get a better deal by switching – perhaps even to an account that offers an interest-free overdraft.
If you think you’re likely to go into the red regularly, check the charges for both authorised and unauthorised overdrafts. Paying less interest each month if you go overdrawn could help you clear your debts sooner and get back in the black.
4. Better support and customer service
Does your current bank offer helpful apps, secure online banking and telephone 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-day swtich guarantee
The Current Account Switch Service has a seven-day switch guarantee. This means your new bank must arrange for all your existing outgoing payments, such as Direct Debits, and incoming payments, such as your salary, to be transferred to your new account within seven working days.
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. Any payments sent to your old account by mistake will be indefinitely redirected to your new one, if required, ensuring none of your regular payments will be affected because of a switch.
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 any 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.