Most people stick with the same current accounts that their parents opened for them. After all, any current account pretty much serves the same purpose as a convenient bank account for everyday usage. However, if you want your money to work for you in the best and most profitable way possible, you may want to consider taking advantage of the new current account switching service. The Current Account Switch Guarantee is something which almost every current account provider in the United Kingdom is now a member of. It provides a completely automated service by which the entire switchover is to be completed in exactly seven working days, or at any point after this should you specify a particular date. The following takes a more in-depth look into the process and how it works.
Joining the New Bank
Once you have chosen a new bank or building society to switch bank accounts over to, you will usually be able to complete most of the process online through the bank’s website. You will not need to alert your old bank either, since both of the banks involved should corporate with one another to make sure that the switchover goes smoothly. During the first day, the process works as follows:
You will need to sign a couple of forms – the Current Account Switch Guarantee form and the Current Account Closure form.
You will be given the opportunity to choose a set date for switching over the accounts. This will need to be seven working days or longer after starting the process. The date you choose for the switchover will also need to be a working day.
You will need to provide all of the necessary information required by the application form and ensure that this is all correct in order for the switchover to go smoothly. Information required will include details about your old current account, your income status and various other personal and financial information.
Once you have completed the application, your new bank should send out a letter by post that day to confirm that the switching process has begun.
Your new bank will contact your old bank and ask them provide a list of any standing orders or direct debits you currently have set up to make regular payments.
Over the next six working days, you should not have to have any further dealings with either bank unless a problem arises, in which case your new bank should contact you promptly.
Your new bank will set up your regular payments and transfer money from your previous account to your new one in order to pay them, should they need to be paid before the actual switchover is complete.
You will be able to continue using your existing current account right up until the day of the switchover.
Your new bank will order you a new debit card and set up any online banking facilities. They will provide you with all of the information you need to get started with managing and using your new bank account once the switchover is complete.
On the final day, when your new account will be fully operational and ready to use, a few more things will occur:
The new bank will contact you either by letter, phone or email to let you know that the switching process has been successfully completed.
Any balance remaining in your previous current account will be automatically transferred to the new one, and the old account will be closed.
Some banks will allow you to switch bank accounts even if you are overdrawn. However, if you are transferring an existing debt to the new current account, you should attempt to repay the overdraft as soon as possible, depending on the terms and conditions of the new bank.
Over the following months (the exact period of time varies from one bank to the next), payments made to your old bank account should be automatically redirected to the new one.
As you can see, the process requires minimal interaction from yourself, other than the filling in of a few forms. Thanks to this new service, now is the best time to switch bank accounts.