How to switch your bank account
Why switch bank accounts?
Not all banks are the same and some offer far higher interest rates, and lower overdraft fees than others, not to mention better customer service.
Better still, the Current Account Switch Service means that your new provider does most of the admin for you.
Here, we reveal the banks offering the biggest incentives to switchers and the pitfalls to look out for.
Best bank account switching bonuses
We don't recommend switching just because a bank is offering short-term perks – we think you should focus on interest rates, overdraft charges and its Which? customer score.
But if you're already looking to move, it's worth seeing what incentives are on offer:
Provider | Account name | Switching bonus | Which? Customer Score |
---|---|---|---|
Virgin Money | Virgin Money M Account, M Plus Account, Club M Account | 10.47% AER bonus interest up to £1,000 for 12 months | 68% |
Danske Bank (Only available to customers in Northern Ireland) | Danske Reward, Danske Choice, Danske Freedom current account | £200 | 76% |
Table notes: Data correct as of 1 May 2023. Which? customer score: Our rating for customer satisfaction, based on feedback from real customers. The score is made up of a customer's overall satisfaction with the brand and how likely they are to recommend that brand to a friend. We surveyed 4,550 members of the general public in August 2023. Our full table includes scores and star ratings for all banks, including those chosen to be a Which? Recommended Provider (WRP).
Bank switching offer reviews
Virgin Money - offer ends 31 May
To qualify for the switching bonus you must use the Current Account Switch Service and swap over at least two direct debits. This must be completed by 26 June 2024.
If these conditions are met you will earn a bonus interest rate of 10.47% AER (10% gross) fixed on current account balances up to £1,000 for a year from July 1 2024 to June 30 2025. For M Plus Account and Club M Account customers this will raise your interest rate to 12.49% AER (12% gross) for 12 months on balances up to £1,000. This deal could potentially earn you over £100, but the money is paid over a longer time frame than switch offers we normally see. The interest will be paid monthly.
You can't apply for this switching offer if you have closed a Virgin Money current account since 30 April 2024.
Danske Bank - Only available to customers in Northern Ireland
To qualify for the switching bonus you must use the Current Account Switch Service. You must also deposit £1,000 into your account within 60 days.
The £200 will be credited to your account within 10 business days of you meeting the switching criteria.
You are not eligible for this switching offer if you have benefitted from a Danske personal current account switch offer since 1 January 20123. You must also be a new Danske Bank personal current account customer.
How do I switch bank accounts?
There are plenty of reasons to switch bank accounts, as our video explains:
Most banks have agreed to use the new switching service, which means it should take just seven working days to switch you over from your old account once the new account is opened.
If you want to check which banks and building societies are participating, you can search by name here on the Current Account Switch Service (CASS) website.
The switching service is largely automated. The step-by-step process below details exactly what happens.
Step 1: find your new bank account
If you don't yet have an account in mind, you can skip to our advice on choosing the best current account below.
Step 2: apply for your chosen account
When you apply to the new provider, it will undertake its normal account-opening procedures.
Banks and building societies have to comply with strict money-laundering rules, so when you open an account you'll be asked to provide two separate documents for proof of identity and proof of address.
You'll then need to complete a Current Account Switch Agreement form and a Current Account Closure Instruction form, provided by your new bank or building society.
Step 3: know your rights
Your new bank or building society will confirm whether it's using the Current Account Switching Service, which is backed by the Current Account Switch Guarantee.
This guarantee means that it will correct any problems with payments as a result of the switching process.
Step 4: choose a switch date
You'll be able to agree a convenient switch date for you with the new bank or building society.
It can't be a Saturday, Sunday or a bank holiday, and must be at least seven working days after your account has been opened.
Once this date has been agreed, your new bank will provide confirmation that the switch has begun and will be completed on the agreed switch date.
You'll continue using your old current account up until the agreed switching date, although don't set up new payments such as direct debits and standing orders during the seven working days leading up to your agreed switch date.
Your new provider will contact you if there any issues during this period.
Step 5: start using your new account
On the switch date, your new bank or building society will be responsible for moving your incoming and outgoing payments, and transferring any money to your new account, before closing the old account and sending confirmation that the process is complete.