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Published 10 July 2024
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How to Switch Business Bank Account

Switching to a new business bank account can help businesses cut costs, take advantage of introductory offers and gain access to fantastic features like free accounting software or international banking. Find out more about how to switch with or without the Current Account Switch Service.

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Switching to a different business bank account is usually a simple process that could save your business money and give you access to valuable features. 

The process of moving all of your business’s transactions and information across to a new account might sound daunting, but that shouldn’t hold you back. Thanks to convenient full or partial switching services, getting set up with your perfect business bank account has never been easier. As such, it’s something every small business owner should explore.

Below, we explore the reasons business owners might choose to switch business bank accounts as well as how to switch with or without the Current Account Switch Service.

Why switch business bank account?

There are a wealth of reasons to switch to a different business bank account. These include, but are not limited to:

How to switch business bank account

The first step in switching business bank accounts is to find and open your new account. You can find some tips on how to choose your new business bank account at the end of this article, but, for now, it’s good to have an idea of the type of documents you will need to open your new account. These include information about both you as an individual as well as your business, such as proof of identity, proof of address and business details, including utility bills or bank statements.  

Once the new account is open, you can switch in one of three ways.

» MORE: How to open a business bank account 

Switching with the Current Account Switch Service

The Current Account Switch Service aims to remove the frustration from the process of changing bank accounts. It allows customers to easily transfer balances (and in some cases also overdrafts) and recurring or planned payments across to a new account.

To take advantage of the process, which covers both business and personal accounts, switchers just need to open a new account. Then, you simply need to ask your new bank to initiate a switch using the Current Account Switching Service.

To be eligible to take advantage of the service, your business needs to:

Using the Current Account Switch Service to change business bank account will take seven business days, and will ensure that:

At the time of writing, more than 50 banks have signed up for the service. These include the following banks, which have been reviewed by NerdWallet:

Using a partial switch service

You don’t have to use the Current Account Switching Service when you change your business current account. 

Some banks have their own ‘partial switch’ services, which are not backed by the Current Account Switch Service.

For example, NatWest’s partial switch service allows customers to choose a date for their partial switch, on which some or all of their regular outgoing payments will be transferred to their new account. 

However, unlike a full switch, you will need to arrange for any regular incoming payments (such as salary, benefits or pension) to be rerouted to the new account. In addition, new payments to or from your old account will not be redirected.

Manual switching

You can also switch business bank accounts without using any service at all. It is worth considering that switching accounts manually is a much more complicated and time-consuming process, so it is probably best to avoid it unless the Current Account Switch Service and partial switching options are not available with your desired account.

A manual switch will require you to fill in forms, select to transfer some or all of your regular transactions, let you transfer your balance across and give you the option of closing your old account.

While this sounds similar to other options, it is worth noting that you cannot choose the date of your manual switch and it can take up to 60 days to complete. In addition, it is not covered by the Current Account Switch Service Guarantee, meaning you could face additional charges if something goes wrong.

Choosing a new business bank account

Deciding to switch business bank accounts is one thing, but picking your new provider is quite another. Make sure to choose an account that works for your business’s circumstances. Think about whether you want a simple app-based offering, a branch-based traditional bank or an account with cross-border capabilities.

Comparison sites can be a great place to start your search. NerdWallet has several different rankings for business bank accounts, listed below:

Image source: Getty Images

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