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 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. Double check the finer details – there’s usually a limit on the minimum and maximum 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 conditions to make sure they suit you.
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. Look at the rate of interest charged on an arranged overdraft and also if there is 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.
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 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 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.