You may have heard about the seven-day switch in the news recently, but what exactly is it, and what does it mean for you? Read on for all the answers.
What is the seven-day switch?
The official name for the seven-day switch is the Current Account Switch Service, and it’s been introduced by The Payments Council. It’s a new system for moving your money to another bank.
When does it come into effect?
The seven-day switch was introduced on Monday 16 September 2013.
Why has it been introduced?
Until now, many people have kept their money in the same current account for years because they couldn’t face the upheaval of moving direct debits and standing orders over to another account. Plus, the whole process could take up to 30 days to complete, causing all manner of complications with existing payments (incoming and outgoing).
The seven-day switch aims to make moving your money to another account quick, smooth and hassle-free.
What do the banks think about this?
Now that it’s easier for everyone to switch accounts, some banks have responded by offering cash incentives for you to move your money to them. Find out more in our article on how to make money by switching your bank account.
What are the benefits of the new system?
Here’s why the seven-day switch will make life easier for you:
- If you decide to move your current account to another bank, the process will be completed within seven working days.
- You choose a date for your money to be moved that suits you.
- All regular payments going in and out of your account will be transferred to the new one automatically.
- Any payments sent to your old account after you switch will go straight to your new one.
- If a company (e.g. Amazon) has your old details on file and tries to take money out of your old account, rather than the payment being rejected it’ll come out of the new one.
What if something goes wrong?
If the switch fails then The Current Account Switch Guarantee means that you’ll receive a refund of any interest (paid or lost) and charges made on either your old or new account. Before, you’d have had the hassle of sorting it out with the banks.
How do I switch accounts?
Everything is dealt with by your new bank. Simply call them, enter a branch or visit their website and let them know you want to switch to their account. After you’ve completed the necessary forms and agreed a switch date, your new bank will move your money and payment arrangements to their account.
When do I stop using the old account?
You can continue to use your old account right up until your switch date.