What is bank switching?

What is Bank Switching? 

Bank switching is a process that involves changing the bank you use to manage your finances. It is a relatively simple process, but it can have a significant impact on your financial situation. In this blog post, we will discuss what bank switching is, why you might want to consider it, and how to go about doing it. 

Why Should You Consider Bank Switching? 

There are several reasons why you might want to consider bank switching. First, it can help you save money by allowing you to take advantage of better interest rates or lower fees at another bank. Second, it can give you access to more features and services that may not be available at your current bank. Third, it can provide more convenience if your current bank does not have branches in the area where you live or work. Finally, switching banks may give you access to better customer service and more personalised banking experience. 

How To Switch Banks 

Switching banks is a relatively simple process that typically involves opening an account at the new bank and (in the UK) using the current account switching service to funds from your old account to the new one. Before making the switch, however, there are some important steps that should be taken in order to ensure a smooth transition: 

1. Research Your Options: Before deciding which bank to switch to, take some time to research different banks and compare their features and fees so that you can make an informed decision about which one best meets your needs. 

2. Open an Account: Once you’ve chosen a new bank, open an account with them by providing the necessary information such as your name and address as well as any other required documents like ID or proof of address. 

3. Start the Switch: During step 2, you will likely be asked if you are switching an existing bank account into the new one. If not, the option should appear at a later date, but be sure to check whether the banks involved are part of the Current Account Switching Service.

Using this service, your old account will be closed and everything should be moved across to your new account within 7 days. This includes your balance, direct debits, and payment contacts. Anything that you had used your old card to pay for on a monthly basis may need updating as that card will no longer exist.

Benefits of Bank Switching 

Bank switching can provide many benefits including saving money on fees and interest rates as well as gaining access to more features and services than what’s available at your current bank. Additionally, it can also provide more convenience if there are no branches or ATMs in the area where you live or work as well as better customer service and more personalised banking experience overall. 

The biggest benefit in my opinion is the switching bonuses which banks usually offer you to move to them, towards the end of 2022 we saw banks offering up to £200 to switch! 

Conclusion 

By taking some time to research different banks and compare their features and fees before making a decision about which one best meets your needs, switching banks is a relatively simple process with many potential benefits for those looking for ways to improve their financial situation or gain access to better banking services overall.

We are constantly watching the best bank switching offers in the UK, and we update this list here.