Switch to a better bank account in just seven days

Ever thought about switching current account but decided not to as it would be too much hassle? The new seven-day current account switching process, which has launched today, promises to make switching account quick and simple.

So instead of sticking with an account that doesn't pay you a penny in interest, you could easily move to another account that offers a decent interest rate and/or pays cashback.

How will the seven-day switch work?

The main feature of the scheme, as the name suggests, is a guarantee that your bank account will be switched to your new bank within seven working days. This includes everything from moving the money over to changing any direct debits and standing orders.

There will also be one centralised system which every bank has to follow. Anyone wanting to change current accounts will be able to do so on a date they choose.

Why is it happening?

Traditionally we as a nation don’t like switching accounts. This means most people are stuck with a pretty poor deal from their bank. As banks and building societies rely on this apathy, they rarely offer existing customers anything special. And it’s also harder for new entrants in the market to gain customers.

How will online payments be moved?

All banks will be required to move over online payments. Customers will also be given a guarantee that they will be refunded any interest and charges made on either account because of the switching.

What if money is taken out of the old account after the switch?

The new service will make sure any payments are redirected to the new account for 13 months and the person trying to pay in or out the money will be notified of the changes.

Who is in charge when you switch?

Your new bank is the main port of call for the switching service. It will manage any problems or questions you have so you won’t have to go back and forth between both banks.

This means if you decide to leave a bank you won’t have to call them up to say you're leaving, which should serve as a real push to get people to start switching.

Will my current account be safe in the seven-day switch service?

Fraud is a major worry for most current account holders and most of us know someone who has been a victim. The Payments Council, who is behind the scheme, says robust protocols will be in place to make sure the seven-day switch is secure.

When someone tries to open a new account and switch an old one over, they will need to go through ‘rigorous and long-established’ checks to ensure they’re not a fraudster. They will also need to provide details to prove their identity, such as utility bills and a passport.

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How to switch current accounts with the seven-day switch

If you want to get a better deal and change current accounts, shop around using a comparison service such as the one here on Yahoo Finance.

You choose the date you want to switch, which must be at least seven working days after the new account opens, and then sign a Current Account Switch Agreement form and a Current Account Closure Instruction form.

As soon as the switch begins your bank will get in contact and will also confirm the date it’ll be finished by. Until it’s switched over you can carry on using your old account if you need to, but when the switch happens everything will be moved over and your old account will be closed.

What's on offer now

Right now there are some attractive current account offerings available, such as cashback on your direct debits and up to 3% interest from the Santander 123 account and 5% interest and a fee-free overdraft for the first year from Nationwide's FlexDirect account.

Or First Direct is offering £125 if you move to the 1st Account, which consistently tops surveys for excellent customer service.

[Compare top current accounts now and see if you can get a better deal]