3 Bank Switching Concerns, Debunked

£200 for simply switching bank account sounds both juicy, but a little bit daunting.

What is in effect a £250/hr task, in terms of the admin involved in switching offers. Juicy!

The thought of potentially affecting your credit score, moving over your subscriptions, or spending a weekend filling in forms. Daunting!

It’s easy to see why these offers end up on the “I’ll look into it later” pile. But they needn’t be so daunting. Once you understand what a switch involves, a lot of the worry disappears.

You can often keep your main account exactly where it is, the banks handle the hard admin and the requirements become much less intimidating when you break them into steps.

Let’s work through the three big concerns, plus two others (in the written guide only), that can put people off and debunk them one-by-one.

Opening a new bank account can affect your credit score. But any negative impact is a small and temporary dip.

Whether they perform a hard (the kind that impacts) or a soft (the impact-free kind) check depends on the bank.

A hard check leaves a record on your credit report and can lower your score. A soft check doesn’t have the same effect. Experian explains the difference here.

The effect of opening a new account is generally temporary. But your circumstances matter, and opening several accounts close together can give your score less time to recover. The age of your existing accounts can also play a part. Experian’s guide to what affects your score covers both.

So there’s a sensible middle ground: check what the bank does, avoid a rush of applications, and keep on top of your payments.

If you’re applying for a mortgage soon, speak to your broker or lender before opening accounts, including a spare account for switching. I’d put getting the mortgage sorted ahead of chasing a bonus.

There are conditions and you should absolutely read them.

But a bank paying you to become a customer isn’t as mysterious as it sounds. A switching bonus is a way to attract new customers, with a straightforward checklist they need to complete in order to qualify.

Depending on the offer, that checklist might include:

These are ordinary banking tasks and they’ll often be required before a certain deadline. The part that deserves your attention is the detail.

For example, does the money need to stay in the account for a certain time? Do the Direct Debits need to move across with the switch? Does the account charge a monthly fee?

Paying money in isn’t the same as paying a fee. The money remains yours, although the offer may require you to leave it there for a specified period. Check before moving it back out.

I’d start with eligibility, before doing any of the admin. Previous accounts or bonuses can rule you out and exclusions sometimes cover other banks in the same group.

Quidsy’s bank switching offer guides break the requirements into steps so you can see what needs doing and when.

This one I completely understand.

You are familiar with your banking app. Your salary arrives there. Your bills go out without you having to think about them. Tinkering with this would be a faff.

The good news is that you can often switch a spare current account instead, provided it meets the offer’s conditions.

The process looks like this:

The account you nominate for the switch closes when the switch completes. Your separate main account stays open. We have a super simple Spare bank account guide to make all this even simpler.

So this means your salary, bills and subscriptions that are on your main account can carry on as usual.

Then, an added bonus, is that when you come to do your second bank switching offer you can choose to use the bank from bank switching offer number one instead of setting up a new spare.

Two more come up whenever I talk about switching: how long it takes, and what happens to your payments.

There are two different clocks running during a bank switch: the time you spend doing things, and the time you spend waiting.

Once your new account is open and you’ve agreed a switch date, the Current Account Switch Service completes the move for you automatically, in seven working days. Account opening and the wait for your bonus can take longer.

You aren’t spending those seven days working on it. Your part only involves things like applying, verifying your identity, requesting the switch and completing the offer’s requirements.

When we worked through bank switching offers at Quidsy, the hands-on admin took about 45 minutes. Your first go may take longer, especially if you’re setting up a spare account or waiting for Direct Debits to become active.

For a £200 bonus, even an hour of admin can look appealing. Just allow for the waiting time before making plans for what to do with the cash.

Nobody wants a missed bill as a souvenir from their bank switch.

That’s why the Current Account Switch Service exists. It handles the transfer of Direct Debits and standing orders, moves your balance, and redirects payments sent to your old account.

The service also comes with the Current Account Switch Guarantee. If something goes wrong with the switch, your new bank should refund interest and charges caused by the error once you tell them about it. You can read how the guarantee works here.

There is one useful distinction: a Direct Debit is different from a subscription charged to your debit card.

Subscription payments using your old card details don’t automatically move with the switch. If you use that card for a streaming service or another subscription, update the payment details yourself.

Keep enough money available for any payments due, and check they’ve gone through as expected. If something looks wrong, contact your new bank.

And if you’re switching a spare account while your everyday bills stay on your main one, there’s much less to concern yourself with.

Honestly give it a try.

Bank switching does need a little attention. You need to qualify, follow the steps and keep track of the dates.

But knowing that you can use a spare account, that the banks handle the transfer, and that the credit-score question has a more measured answer makes the whole thing easier to assess.

Start with one offer. Read the requirements, check the costs and decide whether it fits your circumstances. You should not rush into several at once.

Our bank switching guide walks you through how it works, including getting a spare account ready:

Happy switching!