I googled this topic several times, and I was still shook by the actual system, when I went through it. Switching current accounts is easy, and there is a system in the UK that can do it for you. But just because it’s easy, doesn’t mean it’s great and you really need to consider things before you do it.
Why switching current accounts?
Switching accounts can be done by anyone (18+) for any reason, but I had 3. Mine were, 1) My old bank (Barclays) had 0 perks to warrant the amount of loyalty I gave them. 2) I wanted the lumpsum for my credit card. 3) Barclays has limited branches in my local area, so I needed a bank that meant I didn’t need to wait for a day off to go to the bank.
But yes, there are plenty of reasons to switch. As long as a reason makes sense for you, I don’t see why you would not switch. So, how does one switch?
How to switch current accounts?
Thankfully, in the UK there is a whole service dedicated to do doing this. And they are partnered with a lot (maybe even all) banks in the country. So, you go to the website of your new bank, create an account where they will say ‘Hey, do you want to use the current account switch service (CASS)?’. I said ‘yes’, so it took them 7 days to move everything major across, and close my old account. Should you choose not to use the service, then your current account won’t switch, you just have two current accounts. One will be your ‘main’ one, which handles the bills and receives your salary, and the other is for whatever reason you got it for.
Make sure you have 2-3 forms of ID to open a new account, and it all happens online, so you don’t need to go to the branch.
Supposedly…
Supposedly, there is an option for you to choose ‘when’ you switch accounts. But I never got to experience this. I was waiting to switch in the new year after all the holidays and my bills for Dec had been paid. So, when I got an email saying my account will switch in 7 days, and that date was 3 days before pay day, you bet I was panicked. I was freaking out. Like, you switch my bank 3 days before I get paid, will my company know to pay my new account? Do I need to tell my company? My company shuts down the system for 7 days before payday, so no updates can be made. I was scared I wasn’t going to get paid.
Thankfully google said, the bank talks to the accounts that you frequent with, including companies. Also, they put a re-direct notice on your old account for like 3 years, so if someone accidentally pays to that account, the money bounces straight to my new one.
Which current account do you choose?
There are a lot, and you can go for the ones that offer the most money to move. When I did it, Lloyds was offering £200 to join them. First Direct and NatWest were at £180 and Santander at £175. I didn’t care too much for Lloyds, as the additional perk was 6 months of Disney+. First direct had the highest ratings for customer satisfaction, and I didn’t research them enough because I thought they didn’t have a branch near me. I have since learnt First direct would have been a better choice (but we learn). Santander was ok and was local, but NatWest paid more, and the perks seemed worth it, since it was also local. So, I went with NatWest.
Note: I used Money Saving Expert to do my research. But I recommend asking anyone who has switched to the banks that you are considering, and anyone who has used it in the long term, before you decide.
Current account switch perks
The perks I get for switching are:
- Net £3 per month for opening the app once a month, and have 2 direct debits paid from the account (they must be worth more than £2 each)
- I get £180 lumpsum (received by time of posting0
- It’s local to me, so I can deposit cash
How was my experience switching current accounts?
After the panic was over on whether I was going to get paid, everything was simple. I got cold feet halfway through the application. But then a pop up came saying ‘We already did a hard search on your credit score’. This meant that it was on my record and would impact my ability to get any credit for the next 6 months. So, I just accepted to continue, since I already had it on record. At least, 6 months from now, I can choose whether I want to stay with NatWest or if I want to bounce or get a new credit card.
For 7 days, I relaxed. They sent me my card and PIN and let me know when it was done. On the day of the switch, I opened my Barclays app, and my old account was deleted. It’s wild, since that was my first bank account at the age of 12. I had to use my card on that first day with my new PIN and then I was free to do contactless, up to £100 per purchase.
How do I feel about my new current account?
Disappointed. I want to switch again just to be away from these issues.
My current account is just for receiving money and paying major bills. After that, all my remaining cash goes to other bank accounts, with higher interest rates for the cash sitting in them. I don’t just mean savings accounts. I have a current account with Chase bank that earns interest on the balance sat in there. Chase is based in America, and I need to be able to deposit cash at a branch, hence why I didn’t switch to them.
I also feel like switching accounts to NatWest was done under a ‘lie by omission’ vibe. No one talks about how long it takes to actually get fully set up!
Why?
This post is coming out 2 weeks after I completed the switch, but I wrote it 8 days after my switch. My biometrics were sorted the day before I posted this (finally). Firstly, there is a £750 daily limit on sending cash to anyone via bank transfer. So, if I send £650 for rent on Monday, I can’t transfer more than £100 to another payee for the rest of the day. *sigh*
I can’t change this £750 limit, until the app allows me to register for biometric approval. Which is weird, because I already use Face ID to get into the app. But no, this biometric is more intense to add security. How long do I have to wait until I can get biometric access? There is no answer. The stupid app says, ‘Keep using the app, this is a new device’. “NatWest – hello? You are making internet banking a gazillion times more laborious than it was created for.” I can’t even make the change on online banking, as it also needs biometric analysis. So, I was not completely set up on my account, until yesterday.
Without this Biometric approval, I also can’t schedule payments in the future, (which means I need to do it on the day, but not exceed £750 limit). I ordered a card reader to get over this ridiculous hump. But I have since learnt that this is how NatWest works. So, if you want to be limited with how you manage your own money, by all means join them. Though for me, I am counting down the days for ClearScore to update my credit score.
TL;DR
- You can switch current accounts for any reason, and as long as you don’t have a hard search or got a new line of credit in the last 6 months (it will damage your score more)
- I switched to NatWest from Barclays for the rewards perks and the £180 cash.
- Using CASS makes switching easy, and it doesn’t affect your pay and direct debits (but subscriptions like Netflix need to be re-done)
- I am currently not enjoying NatWest because of their ‘Security features’ – so I am waiting my 6 months before I switch again
- Always research the bank by asking current account holders and people who have experienced a switch with them before deciding.
