Switcher Business Bank Accounts

Why Switch Your Business Bank Account?

As a business owner, your banking needs can change over time. The account that was perfect for your startup might not be the best fit once your business is more established. There are many compelling reasons to consider switching your business bank account. You might be looking for lower fees, better customer service, more advanced digital banking features, or access to more suitable credit facilities.

Many banks actively compete for business customers by offering attractive incentives to switch, such as cash bonuses or extended periods of free banking. The process of switching has also become significantly easier in recent years, meaning the administrative headache that once put many people off is now much less of a concern. Regularly reviewing your business banking arrangements ensures you are getting the best value and service, which can have a direct positive impact on your bottom line and operational efficiency.

The Current Account Switch Service (CASS)

The biggest barrier for many business owners considering a switch has historically been the perceived hassle of moving direct debits, standing orders, and incoming payments. The Current Account Switch Service (CASS) was created to solve this problem. It’s a free service that makes switching business current accounts simple, reliable, and stress-free.

The service is available to small businesses, charities, and trusts with an annual turnover of up to £6.5 million. When you switch using CASS, the service will:

• Move all your incoming and outgoing payments (like direct debits and standing orders) from your old account to your new one.
• Transfer any balance from your old account.
• Close your old account for you.
• Ensure that any payments accidentally made to your old account are automatically redirected to your new account for a period of 36 months.

The entire process is backed by the Current Account Switch Guarantee, which promises to have your new account up and running within seven working days and to refund any interest or charges you incur if something goes wrong with the switch.

Key Factors to Consider Before Switching

Before you start the switching process, it’s wise to assess what you need from a new account.

• Fees and Charges: Look beyond the headline offer. Compare monthly account fees, transaction charges, cash deposit fees, and international payment costs. An account with a cash switching incentive might be more expensive in the long run if its standard fees are high.
• Digital Features: Do you need an app with invoicing tools, spending analytics, or seamless integration with your accounting software like Xero or QuickBooks?
• Access to Credit: If you anticipate needing an overdraft or business loan in the future, investigate what a potential new bank can offer and its eligibility criteria.
• Customer Service: Consider what level of support you need. Do you value being able to visit a branch, or are you happy with app-based chat and telephone support?

How the Switching Process Works

Switching your account using CASS is a straightforward process:

1. Choose a New Account: Research and find a new business bank account that meets your needs.
2. Apply and Request to Switch: When you apply for the new account, you will be asked if you want to switch using the Current Account Switch Service. You’ll need to provide the details of your old account.
3. Agree on a Switch Date: You can choose a switch date that suits you, as long as it’s at least seven working days away.

Let the Service Do the Work: Your new bank will work with your old bank to move everything across. You can continue using your old account until the agreed switch date.