With around 70,000 people switching bank accounts each month, the process has become increasingly easier over time, with every bank offering a 7-day switch guarantee scheme for their customers.
The 7-day switch guarantee is something that all banks must adhere too and it ensures a smooth transition of all your direct debits and savings from one bank provider to another. There is also cover for any lost transactions when switching from one account to another.
Whilst this is available in 7 days, you can in fact select a date of your choice, so if the end of the month is approaching and you have some important payments or income that is coming in, you can delay the switch date accordingly.
Nic Redfern, Finance Director at Nerd Wallet UK explains: “In recent years, the business banking sector has evolved to offer a much broader range of services, which could mean customers are better served by switching. More than 40 UK banks and building societies have signed up to the Current Account Switch Guarantee for small businesses. The scheme simplifies the switching process as the new provider will handle everything after the paperwork is approved.
Switching accounts typically takes around seven working days after the new account is approved and opened, and on this date you can log into your new account and start using it to make and receive payments.”
Why would you want to switch business bank accounts?
Although switching is not that common, some customers can get quickly fed up of the customer service of their existing provider, or have a bad experience. Some banks have better reputations than others or come with good incentives to open a new account.
With banks regularly offering welcome bonuses of £100 or £200, cashback or other benefits for new customers, there is a real incentive to switch accounts, especially if your spouse banks with that branch already.
For those with business bank accounts, they may be looking to save money from the monthly account fee which ranges from £5 to £25 per month. When you open a new account, you may be given an introductory offer so you do not have to pay for a certain period or it is free provided that you pay a minimum amount into the account each month e.g £1,000.
Other incentives may include free withdrawals from ATMs, no FX fees or an interest free overdraft.