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How to switch your bank account
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Why switch bank accounts?
Not all banks are the same and some offer far higher interest rates, and lower overdraft fees than others, not to mention better customer service.
Better still, the Current Account Switch Service means that your new provider does most of the admin for you.
Here, we reveal the banks offering the biggest incentives to switchers and the pitfalls to look out for.
Best bank account switching bonuses
We don't recommend switching just because a bank is offering short-term perks – we think you should focus on interest rates, overdraft charges and its Which? customer score.
But if you're already looking to move, it's worth seeing what incentives are on offer:
Provider | Account name | Switching bonus | Which? Customer Score |
---|---|---|---|
First Direct | 1st Account | £175 | 82% |
Lloyds Bank | Club Lloyds | £175 | 72% |
Nationwide | FlexDirect | £200 | 78% |
The Co-operative Bank | Standard Current Account, Everyday Extra account | £150 | 73% |
Table notes: Data correct as of 1 July 2024. Which? customer score: Our rating for customer satisfaction, based on feedback from real customers. The score is made up of a customer's overall satisfaction with the brand and how likely they are to recommend that brand to a friend. We surveyed 4,550 members of the general public in August 2023. Our full table includes scores and star ratings for all banks, including those chosen to be a Which? Recommended Provider (WRP).
Bank switching offer reviews
First Direct
To qualify for the switching bonus you must use the Current Account Switch Service and move across at least two Direct Debits or standing orders. You must also deposit £1,000 into your account, make at least five debit card payments and log on to online banking within 30 days.
The £175 will be credited to your account on the 20th of the month after you meeting the switching criteria.
You're not eligible for this offer if you've previously held any First Direct financial product, or if you opened a HSBC current account on or after 1 January 2018.
Lloyds Bank
Lloyds will pay £175 to new and existing customers switching from another bank to Club Lloyds using the Current Account Switch Service between 28 May and 30 July.
The cash will be paid within three days of the switch completing.
Club Lloyds costs £3 a month but this fee is waived in any month £2,000 or more is paid into the account. Other eligible accounts for this offer include Club Lloyds Platinum and Club Lloyds Silver.
Your switch must include the transfer of three active direct debits from your old account (direct debits set up after the switch won't count).
You are not eligible for the offer if you (or your partner if you are opening a joint account) received a switching bonus since April 2020 for switching to any Lloyds Bank or Halifax current account.
Nationwide
This one is only for existing Nationwide members.
You can earn £200 for switching a non-Nationwide current account to one of three accounts - FlexDirect, FlexPlus or FlexAccount - as long as you held an existing Nationwide current account, savings account or mortgage on 31 March 2024.
FlexPlus is pick of the best packaged accounts on offer, costing £13 for a bundle of insurance products.
You must move at least two active direct debits across as part of the switch and you are not eligible for the cash if you've earned a switching bonus from Nationwide before (since 18 August 2021).
The Co-operative Bank
To qualify for an initial £75 within 30 days of opening the account you must use the Current Account Switch Service, transfer at least two active direct debits, make at least ten card transactions, pay in £1,000 and register for online banking services or the mobile app, and login.
If you qualify for the initial £75 you can then earn a further £75, in the form of five £15 monthly payments. To qualify by the end of each month you must pay £50 into a The Co-operative Bank regular saver, have at least two active direct debits, deposit £1,000 and make at least 10 card transactions.
You are not eligible for this offer if you have received any switch incentive from The Co-operative Bank since 1 November 2022 or if you already hold an existing current account with The Co-operative Bank or Smile.
How do I switch bank accounts?
There are plenty of reasons to switch bank accounts, as our video explains:
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.
If you want to check which banks and building societies are participating, you can search by name here on the Current Account Switch Service (CASS) website.
The switching service is largely automated. The step-by-step process below details exactly what happens.
Step 1: find your new bank account
If you don't yet have an account in mind, you can skip to our advice on choosing the best current account below.
Step 2: apply for your chosen account
When you apply to the new provider, it will undertake its normal account-opening procedures.
Banks and building societies have to comply with strict money-laundering rules, so when you open an account you'll be asked to provide two separate documents for proof of identity and proof of address.
You'll then need to complete a Current Account Switch Agreement form and a Current Account Closure Instruction form, provided by your new bank or building society.
Step 3: know your rights
Your new bank or building society will confirm whether it's using the Current Account Switching Service, which is backed by the Current Account Switch Guarantee.
This guarantee means that it will correct any problems with payments as a result of the switching process.
Step 4: choose a switch date
You'll be able to agree a convenient switch date for you with the new bank or building society.
It can't be a Saturday, Sunday or a bank holiday, and must be at least seven working days after your account has been opened.
Once this date has been agreed, your new bank will provide confirmation that the switch has begun and will be completed on the agreed switch date.
You'll continue using your old current account up until the agreed switching date, although don't set up new payments such as direct debits and standing orders during the seven working days leading up to your agreed switch date.
Your new provider will contact you if there any issues during this period.
Step 5: start using your new account
On the switch date, your new bank or building society will be responsible for moving your incoming and outgoing payments, and transferring any money to your new account, before closing the old account and sending confirmation that the process is complete.