How to switch a business current account?
Switching your business current account is very simple. You simply tell your existing bank that you are switching and through the Current Account Switch Guarantee, they will help you switch accounts, transfer any income and direct debits within 7 days.
You will still need to go through the regular motions to open a business current account with your new bank, including providing proof of identity and address.
Once approved, you can liaise with your existing bank and simply tell them what day you would like to switch and your new banking provider will ensure that the transfer is as smooth as possible.
Money EditorPublished on Wednesday, 4 September 2019
Yes, the Current Account Switch Guarantee was introduced in September 2013 to allow smooth coordination between banks and the switching on business bank accounts.
As part of the full switch, the existing bank provider will transfer all your payment orders in and out (such as salary and Direct Debits) to your new account, and also set up a payment redirection for any credits or debits from your old account for a minimum of 3 years.
Yes, however, you will still need to prove your ID and address and apply as per usual.
Yes, the Guarantee Scheme ensures that you will be refunded for any interest (paid or lost) or any charges incurred between the transferring of your account.
It takes up to 7 days to successfully switch business bank accounts, something that is agreed and enforced upon all UK banks. However, you can choose which exact date you would like the switch to take place. So if you need a little longer to get your finances in order, are going abroad or want to wait just a little longer, you can choose a more convenient date.
If you go through the switching service your old account will typically close when the switch is completed.
Often a payment will be rejected by the receiving bank once the account is closed. The money is generally returned the to sender within 3 working days.
No, not all providers offer the current account switch guarantee. If you chose to use a provider that does not offer the switch guarantee you will need to conduct the switch yourself by moving any direct debits over. You will also need to close down your old account when satisfied that the switch is complete. You can check which providers offer the current account switch guarantee on our easy to use comparison.
You may find that as soon as you mention to your existing bank that you want to switch accounts, they will give you an offer to stay, in which case it might be worth staying put.
However, with introductory offers lasting around 18 to 24 months’ maximum, many people consider switching current accounts to save on the monthly fees (around £5 but sometimes as high as £25 per month) and claim other benefits such as free banking, free cash withdrawals, free deposits for cash and paying in cheques.
For some consumers, they may get fed up with their existing provider and their poor customer service, account managers or lack of availability through telephone banking. Some banks may be less consistent with their customer service and consumers may be recommended by a friend to switch or take advantage of a refer a friend scheme.
There are also banks that go under and maybe you want to steer clear and find a more reliable bank to use for your finances.
At Everything Financial, we work with a large selection of business bank account providers so that you can compare business bank accounts and get access to the best rates and offers available. Whether you are an established business or sole trader, you can compare deals effectively and click through to the provider of your choice and get a new account as quickly as today.
Compare features such as free business banking, interest on in-credit balances, overdraft facilities and banking fees in an easy-to-view tables to find the best account for your business.