What is a bank account switch, and should I do it?

What is a bank switch?

A bank switch is moving your main current account from one bank or building society to another. Most UK banks and building societies use the Current Account Switch Service (CASS), which does the fiddly bits for you. You open the new account, tell the new bank you want a full switch, and pick a switch date.

What actually happens

• It takes 7 working days. You choose a switch date with your new bank, and it can't be a weekend or bank holiday.
• Your payments move automatically. Direct debits, standing orders and salary payments are all taken care of. You don't have to phone your gym or your phone company.
• Your balance is transferred to the new account on the switch date.
• Your old account is closed by your old bank.
• Payments sent to your old account are redirected to the new one, so a forgotten refund or a friend paying you back doesn't vanish.

It's free to use. If you'd rather keep the old account open, you can move things manually instead, but then you lose the protection of the switch guarantee.

The switch guarantee

CASS comes with a guarantee: your new bank switches your payments and transfers your balance, and if anything goes wrong in the switch you're refunded any interest or charges it causes. That's the main reason to use the official service rather than doing it all by hand.

Overdrafts: the bit people forget

Your overdraft doesn't automatically come with you. You need to agree any overdraft you want with your new bank. If they won't offer one, or offer a smaller one, you'll need to arrange to pay off your existing overdraft before you switch. If you're relying on an overdraft right now, sort this out first. Our lessons Overdraft basics and The student overdraft explain how they work.

Will switching affect my credit score?

Opening a new current account may involve a credit check, and the official service notes this can affect your credit rating for up to six months. One switch is unlikely to matter much, but if you're about to apply for a rental flat, a phone contract or a mortgage, the timing is worth thinking about. Our credit scores library explains hard and soft searches.

Should you switch? Questions to ask yourself

We don't recommend banks or products, so here are the questions to weigh up instead:

• What's wrong with your current account? Fees, poor app, no overdraft, bad customer service, or nothing at all?
• What does the new account charge? Look at monthly fees, overdraft interest, fees for using your card abroad, and cash withdrawal charges.
• Is there a switching offer, and what are the conditions? Offers often require a minimum amount paid in each month or a set number of direct debits. Read the small print before you count the money.
• Are you a student? Student accounts often work differently, especially around overdrafts, and what happens when you graduate. See Student accounts decoded.
• Is the bank covered by the FSCS? UK authorised banks protect eligible deposits up to £120,000 per person, per authorised firm.
• Timing: avoid switching right before rent day, a big bill or a credit application.

Watch out for switching scams

Your bank will never phone you and ask you to move money to a "safe account", and a genuine switch never needs you to transfer your balance yourself to a new account a caller gives you. If someone contacts you out of the blue about switching or "securing" your money, hang up and call your bank on the number on your card. The scams library has free games on exactly this.

The bit to remember

The official switch service takes 7 working days, moves your payments for you and comes with a guarantee. The real homework is checking the new account's fees, the overdraft and the offer's conditions before you press go. More on choosing an account in the free banking library.