CreditChanging Current Accounts
Whatever the product or service, you might be tempted to switch provider if you can find better value elsewhere. Your current account is no different and you may find you can secure a better deal by swapping your account and opening a new account with a different bank.
Switching bank has became an easier process in recent years and allows you to pick a bank that will pay better rates of interest or offer benefits more applicable to you. How much you can gain from switching current account depends on your personal circumstances, how much you earn, how much money you keep in your current account and whether or not you have an overdraft.
When you are looking for a new current account remember to compare like for like and pay attention to factors like the amount of interest paid when you are in credit and the amount of interest you pay on an arranged overdraft.
If you are eighteen years of age or over you can pick and choose from the array of accounts on the market. Some current accounts come with extra features such as mobile phone and travel insurance and even RAC breakdown cover so think about what features you would benefit from the most.
Most standard current accounts will offer online and telephone banking for ease of access to your finances regardless of where in the world you are. Debit cards that can be used worldwide are also particularly handy, especially if you are a regular traveller.
Once you have identified the current account that you would like to switch to there are a few steps you must follow to ensure the transfer process is as easy as possible.
First and foremost you should approach your new chosen bank and enquire about switching current account. You usually need to provide the name of your old bank as well as your account details. In addition you may need to provide your new bank with two forms of identification; one to prove your identity and another to act as proof of address. You generally need to complete an application form and a transfer form and after this point the entire switch is automated by the bank.
Most banks now offer a switching service whereby your new bank takes care of swapping all your direct debits and standing orders when you open a new account with them. You can also opt to move all of your direct debits yourself.
When switching your current account you may want to keep your old account open for a few months after switching just to make sure no money is being paid in or out.
It is always worth checking that direct debits and standing orders are being properly paid from the new account. This is particularly important as your credit rating can be adversely affected by any unpaid bills.