.jpg)
Thinking about moving your business current account? Perhaps you want better features, lower fees, or an appealing current account switch offer. Traditionally, switching banks felt like a massive admin headache, risking missed payments and cash flow disruptions.
Fortunately, the Current Account Switch Service (CASS) simplifies, guarantees, and makes the process stress-free for eligible small businesses. This guide will help you understand exactly how the account switching service works, who can use it, and how to benefit from its powerful switch guarantee.
What is the Current Account Switch Service?
The Current Account Switch Service is a free, impartial service that can simplify switching your UK business current account (and your personal account) from one bank or building society to another.
The core promise is speed and safety: a full switch takes just seven working days, and all your regular payments - both incoming and outgoing - move automatically. It eliminates the need to contact every person or organisation that pays you or takes payments from you - which is a lifesaver for busy business owners.
The key benefit for companies is the Switch Guarantee, which ensures a seamless transition with zero financial risk.
Business Eligibility for the Account Switching Service
While the service is available to companies, not every business automatically qualifies for the full guaranteed switch. You must meet specific criteria to use the CASS for your current business account.
Eligibility Requirements
Criteria | Requirement |
Business Size | You must employ fewer than 50 employees. |
Financial Threshold | Your annual turnover must be less than £6.5 million. |
Account Type | The account must be a current account (business, charity or trust). |
Participating Banks | Both your old and new bank or building society must be CASS participants (most major UK banks are). |
Switch Type | You must complete a full switch (including closing your old account). |
It’s worth noting that if your business size exceeds the threshold or you only want to move some payments, some banks offer a ‘Payment Transfer Service’, but this isn’t covered by the Switch Guarantee.
The 7-Working-Day Switch Process
Once you've chosen your new bank account and been accepted by the provider (which involves the industry-standard Know Your Customer and Anti-Money Laundering checks), the switch process is quick and efficient.
The Three Steps to a Seamless Switch
Open Your New Account: Apply for your new business current account. Once approved, tell your new bank you want to use the account switching service.
Sign the Authority: You’ll sign two forms: the Current Account Switch Agreement and the Current Account Closure Instruction. This gives your new bank authority to manage the entire process on your behalf.
Choose Your Switch Date: Select a date to switch to your new provider. Once you agree, the switch will be completed within seven working days.
What Happens During the 7 Days?
Your New Bank Does the Work: Your new provider contacts your old bank to obtain a full list of your Direct Debits, Standing Orders, and regular incoming payments from the last 13 months.
Payments Move Across: All your regular payments are automatically moved to your new account.
Balance Transfers: Your new bank transfers any remaining credit balance from your old account to your new one on the agreed switch date.
Account Closure: Your old bank account is closed automatically on the switch date.
The Current Account Switch Guarantee
The single most important feature for small business owners is the switch guarantee. It’s your protection against any issues during the move, ensuring business continuity and peace of mind.
Key Protections
All Payments Redirected: For at least 13 months after the switch, any payments accidentally made to your old account will be automatically redirected to your new one. Your new bank will also notify the sender of your new account details.
No Loss of Service: Your new bank does all the heavy lifting, ensuring no interruption to your cash flow.
Full Refund Guarantee: In the unlikely event that a switching failure results in a financial loss, your new bank will immediately refund you.
This switch guarantee means you can confidently chase the best bank account switching offers without worrying about the admin risk attached.
Why You Should Consider Switching
Switching your business current account is no longer a chore; it’s an opportunity! You should be actively looking at the market for the best fit for your growing business.
Reason to Switch | Benefit to Your Business |
Lower Fees | Access introductory offers such as fee-free banking periods or lower ongoing monthly fees and transaction charges. Look for a strong bank account switching offer. |
Access to Digital Tools | Move to a modern bank that offers better mobile apps, instant payment notifications, and seamless integration with your accounting software. |
Customer Service | Switch to a provider known for reliable, personalised business support that understands the needs of a growing SME. |
Borrowing and Overdrafts | Secure better lending facilities, such as a more generous overdraft or more favourable terms on business loans. |
Can I Switch My Overdraft?
Yes, you can request to move your overdraft, but you must discuss this with your new bank before starting the switch. The new provider will assess your business circumstances and may offer an equivalent facility, subject to their lending criteria.
Your old overdraft balance will not be automatically transferred; you must repay your old debt or have the new bank agree to a transfer, which they can then facilitate.
Do I Need to Inform Customers and Suppliers?
The Current Account Switch Service automatically redirects payments for 13 months, providing short-term protection.
However, it is advisable to inform key contacts (customers, partners, HMRC, and employees) of your new account details promptly to ensure smooth, long-term transactions.
What Happens to Future Payments and Standing Orders?
All regular, recurring payments, including Standing Orders and Direct Debits, are automatically moved. One-off payments scheduled to leave your old account after the switch date will not be transferred; you must set them up again in your new account.
Is a Partial Switch Covered by the Guarantee?
No. Only a full switch - where the old account is closed - is covered by the CASS switch guarantee. A partial switch (moving some payments while keeping the old account open) should be handled manually and doesn’t provide any financial guarantee.
