Switching Business Bank Accounts

How to switch business bank accounts

1. Weigh up the pros and cons of switching

   Read through the pros and cons we’ve listed above to help decide whether to switch your account.

2. Compare business accounts to find the best deal

   Get stuck into some research. You can start by using our comparison table below to find deals for business accounts.

   If you want to take advantage of the Current Account Switch Service, check which providers are signed up.

3. Apply and switch

   When you’re ready to switch, the first step is to apply for an account with the new provider.

   If your new provider is signed up to the Current Account Switch Service, it’s likely it will ask you if you want to use the service when you apply. Expect it to take seven working days for the new bank to arrange the switch. Then, on the date you pick, your new account will be ready to use with your existing scheduled payments (direct debits and standing orders) transferred to the new account. Repeated incoming payments such as your salary will also be moved over.

   If your provider isn’t part of the Current Account Switch Service, you’ll need to cancel your existing scheduled payments and set them up on your new account.

   Regardless of whether or not you use the Current Account Switching Scheme, you'll need to:

   • download any statements you need from your old account – your bank will also send your statements from the past five years
   • update your invoice template with your new details
   • tell customers to use your new details
   • update any companies you’re paying by CPA
   • update your saved payment details next time you buy online
4. Check your old account

   If you’ve switched using the Current Account Switch Service, your old account will be closed automatically. Check your post and email for notifications.

   If you didn’t use the Current Account Switch Service and you want to close the old account, you’ll need to ask your old provider to do this.

5. Review your business banking regularly

   It’s a good idea to review your business banking at least once a year to make sure you’re getting the service you need. You could set a recurring reminder in your calendar or if you have an accountant, you could ask them to keep an eye on your account to make sure you’re getting value for money.

How long does it take to switch business bank accounts?

For business accounts covered by the Current Account Switch Service, banks and building societies promise to complete the entire switching process in seven working days.

You’ll need to apply for an account with your new provider and inform them that you want to use the switching service (often you will be asked about this during the application process).

You can then pick a date for the switch – it must be a weekday in at least seven working days’ time, and not a weekend or bank holiday. Your new bank will do the rest. You don’t need to inform your old bank. If you’re switching to a provider that isn’t covered by the Current Account Switch Service, it is likely to take longer than seven working days to switch accounts.

Once your new account is open, you’ll need to do the switch yourself: cancel existing scheduled payments and set them up again on the new account, transfer across money in the old account, inform your customers and so on.

Do I have to close my existing account when I open a new business bank account?

If you use the Current Account Switch Service, your old provider will automatically close your existing account for you after they have transferred all the money and scheduled payments (direct debits and standing orders) to your new account.

So if you want the option to keep your old account open, you can’t use the Current Account Switch Service, and will need to arrange the switch yourself.

Will I be charged a penalty fee if I switch business accounts?

You shouldn't be charged a penalty to switch accounts but you’ll need to clear any debts with your existing provider before you can close your account.

Can I switch business bank accounts if I have an overdraft?

If you have an overdraft with your existing bank, you can use the Current Account Switch Service. You will need to check whether your new bank will match your existing overdraft facilities and will allow you to transfer the money you owe to your new account.