I’m putting it out there – but if you haven’t switched your bank account in years, you’re being a mug.
Bank accounts are like men – you need to switch to a new one now and again… I’M JUST JOKING! But the bank account bit is true. Sticking to the same bank account for years isn’t doing you any favours.
Plus, did you know that when you switch, it will only take a little bit of faff, seven days – and the bank will PAY YOU to do it?
There are hundreds of bank accounts to choose from, which means you can find a good deal whether you want to earn interest on a credit balance, cut the cost of your overdraft, collect rewards or cashback or want a bank with a better customer service record.
How much can you get if you switch bank accounts?
Now of course, don’t just switch to the bank account with the best freebie without doing a bit of research. Think about credit interest rates, overdraft charges and customer service scores too.
Check out Which’s current incentive chart:
Now be careful, because a lot of the banks with the best freebies require you to pay in a certain amount each month to get the benefits. Of course, if you don’t think you will be able to keep this up at all – find a bank with a smaller paying in amount.
There is a cheeky way to get around this though. So lets say you have to put £500 in your bank account every month to get the new account benefits – but you only have £250 coming in this month. All you have to do if put the £250 in, take it out, then put it in again. Technically you’ve put in £500 into the bank account that month, so have qualified.
How does switching bank accounts work?
Stay with me, I know bank chat can be boring but it’s worth it – free money remember?
So not so long ago, switching bank accounts was an absolute nightmare – so people didn’t do it. Most would get a bank account as a child and would stick with it till they die.
Now though, most banks have agreed to use the new switching service, which means it should take just seven working days to switch you over from your old account once the new account is opened.
- When you apply to the new bank, it will undertake its normal account opening procedures. It will confirm that it will use the current account switching service backed by the Current Account Switch.
- Once your new account has been opened, you will need to complete a Current Account Switch Agreement form and a Current Account Switch Service – Account Closure form.
- You then pick a switch date for you with the new bank and needs to be at least seven working days after your account has been opened. You’ll then get confirmation that the switch has begun.
- You then just continue to use your old bank account, up until the agreed switching date. Your new bank will contact you if there are any issues.
- On the switch date, your new bank will be responsible for moving your incoming and outgoing payments and transferring any money to your new account.
Can I switch bank accounts if i’m overdrawn?
Yeah, you can do if you find the right bank account. Find one where your new account provider offers you an overdraft facility and whether or not it matches your current overdraft limit will depend on your circumstances.
Have you switched bank accounts? How hard was it? What did you get? Let me know in the comments!