Switching service still a mystery to many
THE Current Account Switch Service was introduced three years ago, yet according to the Competition and Markets Authority it is ‘not widely known’ and does not command the confidence it deserves.
Once you have chosen an account, ask your new bank or building society to use the service for the switchover – as long as you are happy to ditch the old account.
It guarantees a smoother process and means you will not pay penalties if something goes wrong – for example, if a direct debit is missed or a payment into your account goes astray, plunging you into an overdraft. Your new account provider refunds any charges incurred.
The transfer takes seven working days at most and you can choose the date it starts. Direct debits, standing orders and the balance of your old account are automatically transferred to the new one. If any payments are made into or requested from your old account they will be directed to the new one for 36 months.
From the middle of next month this time limit will be removed, so the redirection facility will last as long as the customer needs it.
After four decades with Barclays, retired teacher Candia Woods used the service to move to M&S Bank’s current account this year.
The married grandmotherof-one, from Wolverhampton, says: ‘I’d been aware I needed to switch utility providers to make savings in my household budget. But switching bank seemed such a big step.
‘I needn’t have worried as the process was seamless.’
She even recommended it to a couple of friends who have gone on to switch banks.
Her new account has no monthly fee and came with a £100 gift card, £10 a month to spend at M&S for the first year, reward points for spending in-store on her debit card and access to a regular savings account paying 6 per cent interest for a year, which she is using.
The retailer’s bank branches are open whenever the stores are – including at weekends – and Candia recommends the bank’s customer service.
She says: ‘Barclays never paid interest on my money so it made sense to get the regular savings deal in a market that has taken a turn for the worse.’
Find out more about the service at simplerworld.co.uk.