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If you have never done a bank switch, this beginner’s guide to bank switching shows you what really happens to your money, your bills, and your credit file. It also covers the slip-ups that catch out first-timers.
Bank switching moves your current account to a new bank through the free Current Account Switch Service. It takes seven working days. Your balance, Direct Debits, standing orders and salary move across, and your old account closes. Your new bank guarantees the switch. Many banks add a cash bonus, and that comes with its own conditions.
I keep those bonuses on my bank switch offers tracker, because the amounts and deadlines change so often. Some links on the tracker are affiliate links, and my affiliate disclosure explains how that works. This guide does a different job. It explains how switching works, so any offer you pick feels less daunting.
Most of bank switching is waiting for things to progress. The active work is small, and you do most of it before the switch starts.
What is bank switching?
Bank switching means moving your current account from one UK bank or building society to another. A full switch moves your balance, Direct Debits, standing orders and incoming payments. Then it closes the old account.
Opening a second account is not a switch. You keep the old account, and the switch service does not cover it.
Banks want full switches because a full switch takes a customer away from a rival. That is why most bonuses ask for one, as MoneySavingExpert explains.
How the Current Account Switch Service (CASS) works
The Current Account Switch Service, known as CASS, is free to use. Pay.UK runs it, and more than 50 banks and building societies take part. The CASS website has the full list of participating banks and building societies.
Your new bank handles the switch. It moves your regular payments in and out, and it sends your balance across on the switch date. Any payment sent to your old account later is redirected to the new one for at least three years. Each time that happens, the sender gets a message with your new details.
Every switch comes with the Current Account Switch Guarantee. If an error costs you interest or charges, your new bank refunds them. The rules are the same at every participating bank, according to the CASS common questions page.
How to switch bank accounts, step by step
The official CASS guide sets out the process. Here it is in plain English.
- Pick the account and check the rules: Make sure the bank takes part in CASS. Read the eligibility rules, such as the minimum pay-in and the number of Direct Debits. If you need an overdraft, agree it with the new bank before you start.
- Tidy your old account: Download your statements, because CASS does not move your transaction history. Cancel any Direct Debits you no longer use. If your bills feel high, my guide to saving money on bills is a good place to look while you’re at it. Check that your name and address match what your old bank holds, too.
- Open the new account: You can usually apply online, in an app, by phone or in a branch. The bank runs identity checks first. Opening an account and switching are separate steps, so the switch can’t start until the bank is happy with your application.
- Choose your switch date: It must be at least seven working days after the account opens, and it can’t fall on a weekend or bank holiday. You sign the Current Account Switch Agreement and the Current Account Closure Instruction.
- Set up any new payments on the new account: Your old account works as normal until the switch date. But CASS won’t move payments you set up at the old bank in the last seven working days. Use the new account for those.
- Switch day: Your balance moves, your payments redirect and your old account closes.
- Check and tidy up: Look at your first few payments. Update any subscriptions you pay by card. If a Direct Debit hasn’t moved, tell your new bank. The guarantee refunds interest and charges caused by the error.
How long does it take to switch bank accounts?
A switch takes seven working days. Your switch date must be at least seven working days after your new account opens. With weekends in, that usually works out at a bit over a week on the calendar.
Account opening can add time, because the bank checks your identity first. You can cancel the switch up to seven working days before the switch date by speaking to your new bank. If the switch runs late, you can still use the new account, as long as it’s open and has money in it or an agreed overdraft.
The bonus runs on a separate clock. Banks pay at different speeds, from about ten days to a few months after you meet the conditions. Check each offer’s terms for its own timing.
What happens to your Direct Debits, salary and subscriptions?
Most of your regular payments move on their own. A few things don’t.
| CASS moves this | CASS does not move this |
|---|---|
| Your balance | Your transaction history |
| Direct Debits and standing orders | Recurring card payments, such as Netflix or Disney+ |
| Incoming payments, such as salary or benefits | Access you gave to budgeting apps and comparison sites |
| Saved payee details | Savings accounts and ISAs |
Recurring card payments are the ones where you gave a company your long card number. CASS can’t see them, so you need to update them yourself.
You also need to cancel and re-authorise any app that reads your bank data. If you want a record of old payments, download your statements before the switch.
Can anyone switch? Bank switch eligibility and banking groups
Almost anyone with a current account at a CASS bank can use the service, even without a bonus. Bonuses add extra rules.
You usually need to be a new customer with no previous bonus from that bank. Most offers also want a full switch through CASS, a minimum pay-in and at least two active Direct Debits. An active Direct Debit is one that has paid out in the last 13 month. Some offers add card payments or an app login.
You must also switch from a different banking group to the one paying the bonus. Sister banks count as one group. The main ones are:
- HSBC and First Direct
- NatWest, RBS and Ulster Bank
- Nationwide and Virgin Money
- Lloyds, Halifax and Bank of Scotland
- Santander, Cahoot and Cater Allen
- Barclays and Tesco Bank
- Co-op Bank and Smile
Your history counts too. Many banks exclude anyone who has held an account or taken a bonus since a set date. Each offer states its own date, so read the terms before you apply.
Does switching banks affect your credit score?
Usually a little, and only for a while. CASS says the bank may run a credit score when you open the new account. The effect can last up to six months, and opening several accounts in that time makes it take longer to settle. A full switch closes your old account, which CASS says can add a positive contribution to your score.
MoneySavingExpert adds that one extra search shouldn’t make much difference, but several in a short time can. If you plan to apply for a mortgage soon, do that first and switch afterwards.
Is bank switching safe?
Yes. Two protections apply.
The Current Account Switch Guarantee covers mistakes in the switch itself. The Financial Services Compensation Scheme (FSCS) covers the money in your account if a bank fails. Since 1 December 2025, the FSCS limit is £120,000 per eligible person, per authorised firm.
Brands that share one banking licence count as one firm. Your £120,000 covers them all together, so moving money between sister brands doesn’t add cover. The FSCS has a page showing which brands share a banking licence.
Are bank switching bonuses taxable?
Switching bonuses are normally tax-free. Some regular account rewards can be taxable, and the bank usually takes basic-rate tax off before it pays them. Cashback on your spending isn’t normally taxable.
This applies to personal accounts. If you switch a business account, ask an accountant or HMRC first. Tax rules change, so check with HMRC if you’re unsure.
Is bank switching worth it for a beginner?
I think so. Bank switching is a great way to earn a few hundred pounds of extra income for minimal effort. The active time is small, and most of the process is waiting.
The bonus is only part of the deal, though. First-timers tend to trip up in the same places:
- Setting up new payments at the old bank in the last seven working days.
- Missing the pay-in or Direct Debit deadline.
- Switching from a sister bank, then finding they can’t claim the bonus.
- Forgetting to update card subscriptions after the switch.
- Applying for several accounts at once.
My tracker covers the offer-by-offer checks, such as monthly fees and interest. If you enjoy small wins like this, my guide to finding the right side hustle can help you pick the next one.
Where to find live bank switch deals
Offers change often, and some end on a set date. My tracker of current bank switch offers lists each deal, what you need to do to qualify and when I last checked it. Always read the bank’s own terms before you apply, because those terms decide whether you get paid.
Beginner’s Guide to Bank Switching FAQs
Do I have to close my old account?
With a full CASS switch, yes. Your old bank closes it. You can keep the old account open, but you can’t use CASS for it and the guarantee won’t cover it. Most bonuses need a full switch.
Can I switch if I’m overdrawn?
Yes, but agree the overdraft with your new bank first. If it won’t match what you owe, you must repay the old overdraft separately before you switch.
Can I switch a joint account?
Yes, if both people agree and you move to another joint account. You can’t use CASS to move a joint account into a sole account. You can switch a sole account into a joint one, but that links your finances for credit purposes, so think it through first.
I get Universal Credit. Can I switch?
Yes. After you report your new bank details, you may be asked to verify your ID at a Jobcentre. Switch just after a payment lands and update your Universal Credit account as soon as the switch completes.
Can I switch more than once?
Yes. You can switch as often as you like, but each bank sets its own rules about previous customers, and several credit searches in a short time can affect your record. MoneySavingExpert has a guide to switching bank more than once.
What if something goes wrong?
Contact your new bank, because it provides the guarantee. It must fix payment errors and refund interest and charges caused by the switch. If it doesn’t, you can complain to the bank and then take your complaint to the Financial Ombudsman Service.
Have you done a bank switch before? Tell me how it went in the comments, or message me on Instagram. If you want more easy ways to earn extra cash, have a browse of the Make Money section.
