All too often, businesses end up with a bad bank account deal simply because the act of switching is too much hassle.
Now, a new service has launched that aims to make the process simpler. The Current Account Switch Service, backed by the Independent Commission on Banking, is a not-for-profit service intended to make it quicker and easier for small businesses to switch their basic business account from one bank to another. The service means that small business owners can make sure that they are getting the best deal by providing a simple way to move providers.
According to the Payments Council, under the Switch Service it will now take seven working days to move an account from one provider to another – significantly less than the 18 to 30 working days under the previous regime. Business owners can choose to switch on a day that suits them.
Crucially, all existing payment arrangements will be moved from your existing account to your new one automatically. This includes both incoming and outgoing payments.
While you should inform your customers of your new bank details, under the Switch Service payments made to your old account will automatically be redirected to your new one for up to 13 months, meaning that you shouldn’t miss out even once your old account is closed.
In the event that something goes wrong, the Current Account Switch Guarantee ensures that you will be refunded any interest, either lost or paid, along with any charges made by the bank.
The Current Account Switch Service introduces a standardised account switching procedure for the first time. Prior to the introduction of the scheme, processes for moving accounts varied from bank to bank. Importantly, in the past payments made to old accounts would generally have been rejected by the bank.
Business owners who wish to move their bank account using the Current Account Switch Service should contact the bank or building society to which they wish to move.