Switching banks & bank charges

Lesson 11 of 14 in our free Banking & Payments guide: a 5-minute money game with the key points below.

This lesson is in the full version.

Free with a code from your uni, college, council, landlord or employer (worth £600/year). Lesson 1 of Banking & Payments is free for everyone.

Questions you'll answer

Which is TRUE about the Current Account Switch Service?

Paying by debit card in the UK → Usually free. Standard UK debit spending is usually free.
Using an overdraft on a standard account → Can cost you. Interest, usually charged as an annual rate.
Spending on a debit card abroad → Can cost you. Many accounts charge a foreign transaction fee — some don't. Check.
Switching banks → Usually free. Free through the Switch Service.
A packaged account with bundled insurance → Can cost you. Monthly fee. Only worth it if you'd use (and qualify for) the extras.
Fact: “Banks have to show you how much you've paid in fees each year.” — UK banks give you an annual statement of fees. Worth a look.
Myth: “Loyalty to one bank always gets you the best deal.” — Loyalty rarely pays. Compare features now and then.
Fact: “You can switch even if you have an overdraft, if the new bank agrees.” — The new bank decides whether to offer an overdraft. Check before switching.