From 16th September 2013 switching a current account will become easier under The Current Account Switch Service launched by the Payments Council. This free-to-use service is designed to make the whole process simpler and quicker and will be backed by a new Current Account Switch Guarantee supported by UK banks and building societies.
The Payments Council is the body responsible for delivering the service and has committed to approximately £750 million of investment to deliver and raise awareness of the service.
Why is The Current Account Switch Service being introduced?
It has long been felt that switching current accounts has been a long and arduous and ultimately stifles competition. By speeding up this process The Payment Council believes it will provide greater customer satisfaction and improve competition in the current account market.
What are the benefits of The Current Account Switch Service?
- the customer can switch on a date that suits them and that they agree with their new bank
- they will be informed by their new bank of the start and completion of the switch
- the new service is faster as it will only take seven working days to switch account
- it is hassle free for the customer with all existing payment arrangements transferred automatically from the old account to the new
- a new redirection service will ensure that any payments made to or requested from the old account will be redirected automatically to the new account for a period of 13 months after the switch date
- the whole switching service will be managed by the new bank enabling one point of contact for all queries
- if a customer wants to leave bank they can do so by simply dealing with the new bank, there is no need to talk to the old bank
What is the Current Account Switching Guarantee?
This means that you will receive a refund of any interest (paid or lost) and charges made on either your old or new account as a result of the switch failing.
How secure is the new service?
Security is a key priority for the Current Account Switch Service and robust protocols are in place to ensure that the new service is secure for customers. The new bank or building society will have to go through rigorous 'know your customer' checks to ensure that the person switching is the genuine account holder.
Also read Best Current switching offers and incentives to find the best accounts for your money.