How to switch banks (2024)

FAQs

How to switch banks easily? ›

You can choose to close an account or change banks at any time. Switching is usually very easy, with all your payments automatically moved over for you.

Most banks and building societies use CASS to help you switch current accounts. You can view the full list of institutions on the CASS website. Under the Account Switch Service Guarantee, your new bank will switch your payments and transfer your balance for you, while your old bank will close your old account.

Simply switching from one bank to another using the Current Account Switch Service will not affect your credit rating. However, when you open a new bank account, your new provider may run a credit score check which could affect your credit rating.

Methods for transferring money from bank to bank include wire transfers, automated clearing house transfers, peer-to-peer payment apps, personal checks and cashier's checks. There may be fees to send money with a wire transfer, cashier's check, digital-payment app or expedited ACH transfer.

The best time to make a full switch may be when you no longer wish to use your old account and want to move as quickly as possible. A full switch will transfer all of your details and payments from the old account to the new one within seven working days. Once that is done, your previous account will then be closed.

Transferring money between banks can often be done in one business day or less. But it also may take longer depending on how the banks operate and whether this is a transfer between domestic or international banks. Closing out your old account: Up to 30 days.

Con: Potentially Incur New or Higher Fees

Bank fees—overdraft charges, using out-of-network ATMs, inactivity fees, money transfers and more—can add up to significant amounts of money each year for bank customers.

Do you lose credit if you switch banks? ›

Does switching banks affect your credit score? The short answer is no. According to My Fico, only information about your credit accounts will influence your credit score. Your credit report does not show the banking history of your checking and savings accounts, so switching banks will not affect your score.

Sit back and wait: Your switch date won't be for at least seven working days, as the banks need time to process your application. You can continue to use your old account in the meantime, but don't attempt to set up or cancel any Direct Debits or standing orders.

Choose a bank with low fees and high interest rates. Open the new account. List bill payments, deposits and services from the old bank, transition items from your list, then close the old account.

No, you don't need to close your old account before opening a new one. However, if you're looking to get the best rates and features, it's usually a good idea to close your old account. This will ensure that you don't get charged any fees on multiple accounts which can add up quickly.

Do I have to close my old account? If you use the Current Account Switch Service to switch, your old bank will close your old account. This ensures that any payments made to your old account are automatically redirected to your new account.

Once you've decided where to put your money, opening a new account can be done almost instantly. Opening an account in person at a bank will take longer than opening one online. Keep your old bank account open at least a month if you still have deposits and payments cycling through.

While each bank has its own unique timeframe and process, it generally shouldn't take longer than several business days to switch banks. Transferring funds alone can take less than a day.

The act of closing a bank account, such as a checking or savings account, does not directly affect your credit score. Your credit score is not directly affected by your checking and savings account activity. That includes account closures.