Switching bank accounts, if that’s what you’re thinking of, is relatively easy and you might be interested in knowing that there are currently six banks that will offer you £175 in cash to switch to their service. Also, be aware that some accounts either pay interest on savings or will offer you refunds on bills.
Here is a quick list of which banks are offering the service (as of publication date):
Direct first: £175 for conversion, plus top service
Santander: £175 free plus 1% to 3% cashback on bills (ends this Thursday)
NatWest / RBS: £175 free plus £3/month cashback
Nationwide: £100 Free Cash for New Customers
Virgin money: 25% cashback on supermarket/fuel spending (up to £160)
Santander 123 Lite: Cashback from 1% to 3% of bill
Chase: 1% cashback, 1.5% interest plus free overseas fees
Plus, our in-depth roundup of our best easy-access savings accounts this Fall is here.
Virgin: 2.02% on £1000 plus 1.71% on £25,000
Chase: 1.5% on up to £250,000
Nationwide: 5% on £1,500, for ONE five
If you are overdrafted
Most major banks charge around 40% interest on overdrafts but some offer 0% overdrafts so if you’re in the red it’s worth noting that you CAN still convert if you have overdraft BUT that depends on your intended new provider loan procedure. They may decide not to offer you an overdraft, or may offer you a lower overdraft limit. However, many banks have an eligibility department to determine if you are likely to get an overdraft before trying it.
These three banks offer:
The first day Straight: £250 overdraft 0%
Nationwide: Overdraft 0% for 12 months
Starling: Low overdraft rate
Nationwide: £500+/year coverage for £156 p.one.
The Current Account Switching Service (CASS) process takes seven business days to apply: you simply open a new account with your chosen bank, then request the switch and as long as both banks All customers are CASS registered, the conversion service will close your old account and transfer your money, direct debit and standing orders
It will also process payments due to your old account by automatically transferring them to the new account, for at least three years. It also guarantees a refund of any fees that are wrongly accrued as a result of the process.
WE ARE GETTING PAYMENTS
Also known as Continuous Payment Institutions, these are set up using your debit or credit card details, as opposed to your account number and classification code: so these something you’ve set up like a store card or membership fee. So, if you do switch, make sure to give your new card details to any company that takes money from your card this way.
DIRECT ACTIVITIES DEBTS
An active direct debit is a debit that has been paid in the last 13 months or less than 13 months. Old direct debits can still work even if you don’t pay them monthly in case they’re needed again, or if they’re already set up for annual payments. After 13 months, your bank may remove them from your account or mark them as inactive.
YOUR OLD ACCOUNT
You must close your old account if you switch to CASS (the norm if you want to receive incentives when switching). Your new bank will automatically roll over all payments such as direct debit or your salary.
ISA and credit cards
Migration of your existing account will not affect these types of payments as they are separate from your account; if you set up direct debit for these, it will automatically be transferred to your new bank account.
There is currently no savings account conversion service, but you can transfer money yourself by opening a new savings account and transferring money.