Many deals are dependent on conditions such as a minimum amount of money into your account in the first few weeks, or minimum number of direct debits leaving it.
Switching banks will show up on your credit report.
This is what lenders will look at when deciding how much money you can borrow for a mortgage.
Opening lots of accounts in quick succession could dent your record, but closing an old one may boost your score.
“If you’re planning to apply for a loan or mortgage in the next 12 months, you may want to wait until the deal is done,” says Coles.
If you decide to switch you don’t need to worry about individually transferring over every direct debit or bills payment, thanks to the free Current Account Switch Service (CASS). Over 50 UK banks and building societies are signed up.
Tell your new bank your chosen switch date (allow seven working days) and your old account details – and behind the scenes it will transfer payments, move the balance, and redirect incoming payments, such as benefits or salaries. Your old bank will close your account.
If anything goes wrong you’ll be refunded any interest and charges made on either your old or new account.
People will need to transfer any recurring card payments, such as subscriptions, manually.
Information such as old bank statements won’t be accessible after the move so people might want to download these before they switch.
