The process of switching bank accounts from one bank or building society to another has been made easier following the launch of the Current Account Switch Guarantee.
The Payments Council, which is responsible for delivering the free-to-use service, said it would allow the UK’s 46 million current account holders to switch ‘simply and reliably using a consistent service.’
Key benefits of the Current Account Switch Guarantee include:
- Being able to switch accounts on a set date agreed with the new bank
- A maximum seven-day period to switch accounts – the current process can take between 18-30 working days
- The automatic moving of all outgoing payments such as direct debits and standing orders and incoming payments including salaries
- • A redirection service ensuring any payments sent to or debited from the old account will be redirected to the new account for a period of 13 months
- Any interest lost or charges incurred as a result of errors switching accounts will be reimbursed.
The majority of the UK’s high street banks and building societies have signed up to the agreement, including Barclays, HSBC, Lloyds Banking Group, RBS Group, Santander and The Co-operative Bank.
Individuals may be able to save up to £600 by switching current accounts, Mark Finder from the Money Advice Service told the BBC.
Caroline Rookes, CEO of the Money Advice Service, said: “Having the wrong current account can cost you money. To avoid losing hundreds of pounds through charges or lost interest it makes sense to check whether your account fits with how you use it and if not to switch as soon as possible. The new Current Account Switch Service is a real boost for the UK’s 46 million current account holders, making it easier and faster to move from one provider to another.”
