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Switching current accounts - Ask our expert

On the subject of switching current accounts, our expert says...

Hi Beverly,

Thanks for getting in touch. You’re right, there are some interesting current account deals around at the moment so if you feel your account presents poor value, now could be a good time to switch.

Many people believe that switching current accounts is a complicated process, but these days it’s usually very simple.

The most important thing to do, before you switch, is to compare current accounts to ensure you find the best deal to suit your needs. When comparing current accounts it’s useful to have a clear idea of what’s important to you. Are you looking for a high credit interest rate, a cheap overdraft, or added extras like travel insurance or breakdown cover?

You should also consider whether online banking is important to you, how you want to receive your statements and whether you need access to a branch.

You may find it useful to check out our specific comparison tables for the following:

• Fee-free current accounts
• High interest current accounts
• Packaged current accounts

Once you have found the most suitable current account for you, the rest should be fairly straightforward…

How to switch

With most banks and building societies you can open a current account in branch, by phone or online. If you have not banked with the company before you may be asked to provide identification.

Once your application has been approved, your chosen bank has 10 days to open your new current account. Then your old bank has just three days to transfer all your standing order and direct debit information to your new provider.

This is all it takes to switch your current account and it should be a hassle-free process. To ensure all goes to plan, there are a couple of tips to follow…

Top tips on switching

• Read the terms and conditions – Many current account offers have strings attached and you need to be aware of these before you sign up. For example, you may need to fund your account with a certain amount each month, so you need to ensure you can meet the criteria. Plus, the interest rate may only be fixed for one year, so you need to keep an eye on this and be prepared to switch again.
• Make sure you let people know you’ve switched - Although your standing orders and direct debits will automatically be switched to your new account, you will have to personally notify anyone who regularly pays money into your account.
• Keep your old account open for a few months after you switch – This is a prudent move, just in case anything is missed in the switchover. You might want to leave some money in it for that time too, in case there is anything still to be paid out of it, though this shouldn’t be the case.

My recommendation

If you want to earn a great interest rate on your current account, check out the Premier Direct current account from Alliance & Leicester (www.alliance-leicester.co.uk).

At the time of writing, it is offering a massive 6% interest on balances up to £2,500, as well as an interest-free overdraft for 12 months.

Plus, at the moment, if you switch using its switching service, you can get access to a linked regular savings account which pays 6% interest on your savings of between £10 and £250 a month.

If you want to make the most of this offer, you need to be quick – it ends on Sunday 6 September.

More information on the Alliance & Leicester Premier Direct current account

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