Switching Bank Accounts Explainer

switch bank accounts

Want to switch Bank accounts, well here’s an explainer.

With the UK’s competition watchdog announcing today that bank customers can save £70 a year by switching their current account provider, many of us are now asking is it worth the bother?

Those who go into an overdraft on a regular basis could save as much as £260 a year by switching accounts, so if you are one of those people who do, then we would have to say it’s certainly worth considering a little further.

There are 68 million active personal current accounts in the UK, but only 3% of customers switched last year, with many people having been with the same provider for the last ten years or even more. I can’t think of another product or service which has such blind loyalty.


So how do you switch?

Well its really very simple indeed, the hardest part is actually making the decision to change, but the processes is now very simple and should look something like this:

  • Look at you existing account and work out how much you are paying each year in bank charges, plus any additional fees you may be paying for extras, things like insurance for phone and travel. You should be able to get this from your bank statements.
  • Look around at what other current account providers are offering, some banks will even pay you a £100.00 cash to switch to them, but make sure you are not paying more in the long run, it important to do your research. Use a comparison site, like GoCompare or Money Supermarket to see what’s available.
  • Once you have made your choice, your new bank will do all of the hard work for you, they will take over your payments for DD and standing orders etc, and it should be a seamless transition, the good news is that’s it’s all backed up with current account switch guarantee, which means it will all be done within seven working days, and for 36 months any payments made into your old account will be redirected automatically.
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