Changing the bank used to be tedious and time consuming. Most people never bothered to change after they first started using a high street bank. To change this atmosphere of stagnation and to induce greater competition, the UK government has introduced a scheme were your bank must be able to close and transfer your account to another bank within 7 days.
This is a process which normally took around a month to do which was the reason for people to be reluctant in switching. Here are some of the features:
1. For 13 months, payments accidentally made to your old accounts will be transferred to your new account. The sender will also be contacted with your updated bank details.
2. Direct Debit’s and standing orders as well as pay will be automatically transferred to the new account.
3. Any money in the account will be transferred!
4. New bank will refund any losses if there is a mistake made which incurs charges or interest lost.
5. This service is free!
A potential pit fall with using the scheme is that any recurring payments also known as continuous payments are not part of the guarantee. These are payments organised using just your debit card and not your bank account details. These payments need to be manually changed by contacting the concerned parties.
A final thought, if you want your old account open after the switch this is not possible. To do this you will have to switch the old way which takes around 30 days with no guarantees made on payment redirection.