On 16 September the Payments Council launched a new free service that makes it very easy for consumers to switch to using a different current account with the same or a different bank or building society.
The Payments Council is the authoritative body responsible for payment services in the UK. The new Current Account Switch Service is backed by a Current Account Switch Guarantee, that is supported by almost all UK banks and building societies, and so the new service is available to practically anyone with a current account.
Features of the new Switch Service
- The transfer process will take seven days
- Existing payment arrangements like salary, standing orders and direct debits will be automatically moved to your new account
- Payments made to or requested from your old account will be automatically redirected to your new account for 13 months after the switch
- Your new bank or building society is responsible for completing the process and you shouldn't need to communicate with your old bank at all.
Why Switch?
Your present current account may not be offering you the best rate of interest. Depending on your personal details and financial history, you may be able to earn more off your money by moving it to a different current account with a better interest rate.
Find the Best Current Account
Switching your current account is one of the easiest ways to save money. You only have to do it once to enjoy the benefits month after month. Make sure you look at the following factors before deciding on which current account to switch to:
- Any restrictions on how or when your money can be accessed
- Additional incentives like insurance cover or free gifts
- Overdraft limits, charges and interest rates
- Any other charges or fees
- The level of customer service. This can be subjective but try to draw on past experiences you've had. Ask your friends and family, and read comments on the Internet to determine if your chosen bank is enjoyable to do business with.
- For even better results research the best deals every six months and switch to take advantage of introductory offers.
Saving Your Transaction History
The biggest drawback of switching your current account is that you could lose all your financial transaction data; that is your income and spending history. You may still have paper bank statements, or be able to download this data from your bank before you make the switch, but it's not the same as having the information sorted and searchable in your Internet banking account.
Money Dashboard has the Solution
Money Dashboard's free money management software saves your transaction data for you. If you don't have an account yet, sign up today before switching your current account to keep at least the last three months of data. The following steps will guide you through keeping your financial history when switching current accounts:
- Sign up and add your present current account to your dashboard. This will automatically load three months of transactional data.
- Switch your account over using the Current Account Switch Service
- Refresh your old account in Money Dashboard as close as possible to the switchover date to prevent any gaps in the data
- Add your new current account to the Money Dashboard panel after the switchover date
- Contact Money Dashboard and let us know the date your old account closed and which account you've moved it to. Also let us know if you believe any recent transactions are missing from your transaction list
- We'll handle the rest.
