It has been said that you’re more likely to get divorced than you are to move from the bank account you had on your wedding day. This saying might not actually be far from reality as only 700,000 of 70 million current accounts were switched between July 2020 to 30 June 2021, according to the Current Account Switch Service.
Many people stick to the same bank out of habit, but if your needs have changed, it is worth seeing what else is available. Whether you want better customer service, an interest-free overdraft, access to a branch, or more innovation, it could be time to move.
It’s easier to switch than ever before with the current account switch guarantee, which means your new bank does all the legwork and should complete the switch within seven working days. And the good news is, you could also get free money for moving as many banks are offering incentives when you move accounts.
Free money for switching bank accounts
We take a look at how much “free” money you can get when you switch with different banks—although note, you should only move if it suits your needs and not because of the cash incentive.
First Direct 1st Account
HSBC Advance
Club Lloyds
Nationwide FlexDirect
Natwest Reward (also RBS Reward)
Santander 123
Virgin Money M Plus
Bank account switching checklist
- To receive a switching incentive from any bank, you need to use the Current Account Switch Service (CASS) to do the switch. This service will transfer your balance and direct debits and close down your old account. The process should be complete in seven working days.
- Most banks insist you set up at least two active direct debits on your account to get cash or other incentives for switching.
- Most banks also bar customers who’ve previously received a switching incentive from the same bank (or a bank in the same group) in a set period of time. If you have a joint account with someone else, you’ll both need to agree to the switch.
- Technically, you can close down your existing current account and open a new one yourself—but you won’t be eligible for switching incentives unless you use CASS.
Switch to the right bank account
Smart With Money
Smart With Money is our dedicated money channel created to give you expert, easily digestible information to help you make the most out of your money.
Although free money is always tempting, it’s best not to switch bank accounts for a cash incentive alone. Instead, you should do your homework to find the best current account for your needs. If you’re always in the red, a competitive overdraft rate will be essential but if you’re normally in the black, in-credit interest will be more important.
A packaged account—where you pay a monthly fee in exchange for a bundle of perks —will be a good option for many people. Look for benefits you know you’ll use —the most popular ones are travel insurance, mobile phone insurance and car breakdown cover. Some banks also run various reward or discount schemes in partnership with selected retailers.
According to CASS, most people switch bank accounts for reasons other than money. In the second quarter of 2021, consumers favoured better online banking facilities (47%), stronger customer service (39%), ease of mobile or app-based banking systems (39%), and location of branches (25%) in their new current account
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