5 Questions you need to ask before switching banks

The current account switching service has made it easier for us to switch our current accounts to a new bank, but there are some questions you need to ask before you switch.

What are those 5 questions?

1. How do I interact with my bank?

I have very limited interaction with my banks and generally only use their app and only call them if something doesn’t go as I expected.

You might interact with a bank differently, you might do telephone banking or prefer to visit a branch in which case you need to consider whether there is a branch near you or look for reviews on how their customer service performs.

2. Will the app provide me with everything I expect?

You might be stopping with this bank for a few months to the app has to be good.

Unfortunately, some banks and building societies haven’t invested as heavily in their apps as others and therefore might not give you as much information as the next or getting to the information that you want or need might take far too many clicks to get to or is not that clear.

3. What are others saying about the bank’s service?

Reviews are a great way of finding out whether you are going to get a service that you would expect from someone looking after your money.

Service isn’t just about the contact you have with them over the phone, but also whether the bank has frequent outages resulting in you not being able to access your money.

4. Do I need all the benefits they are offering?

For a monthly fee, some banks offer an account that has what some might consider value-added benefits such as travel insurance, breakdown cover or mobile phone cover.

Before signing up for one of these packaged accounts you should look at services that you already pay for that might include these ‘benefits’

5. Does the bank allow you to use Apple Pay or Google Pay

Not all banks and building societies offer the facility to use these services so you’ll need to check this beforehand.

Apple Pay – Supported banks

Google Pay – Supported banks

My own experience with my banks

We often think that banks are a much of a muchness and don’t offer anything to differentiate it from another.

I opened a bank account as soon as I was able and now in my 40s, I’ve only ever switched my current account three times.

I moved from my first bank because like many of us, I felt like I was nothing more than a number and was only there to make the bank money. 

When I wanted to start a business, I was told that the only way that I could get a loan with them was by paying the protection insurance I was young and didn’t know any better, I was later able to get a payout from them, that was strike one.

My interaction with the bank was limited from then on, that was until I came into some money from an inheritance.

All of a sudden they wanted to sit down and tell me how much they valued me as a customer then began to try and sell me a range of products to try and part me with this money, strike two.

Then there was the poor rate of interest, which was strike three.

Why switch your current account?

Regardless of what anyone might say to the contrary, our money is important.

It enables us to keep a roof over our heads, food in our bellies and allows us the opportunity to create memories with our friends and families.

The thing is where you keep your money has a huge effect on whether your money is working for you or you are just servicing the bank, only making them more money in the process.

The means reasons to move bank are:

• Better interest rates
• Opportunity for cashback
• More advantageous overdraft fees
• Better overall services

Bank switching offers

We often see banks trying to entice us to move over our bank accounts with a range of switching offers from money to gifts and promotions, but this shouldn’t be the only reason you switch

How to find banks offering offers

The best way to find banks that are offering incentives to switch is by using the MoneySaving Experts bank comparison.

Not only do they break down the banks that offer incentives, but also the best bank in any range of other categories such as cashback, savings interest and those if you’re overdrawn. 

Don’t switch banks just for the offers

While it might be tempting to switch banks just for their switching offer, don’t.

Remember, your new bank has to work for you and if it doesn’t no amount of money is worth the switch.

If you do decide that you still want to switch purely for the switching bonus, read the terms and conditions to see whether there are conditions attached to the offer such as the time you need to be with the bank, 

What if you decide the new bank isn’t for you?

If you change your mind about the switch for whatever reason you should contact the new bank seven days before your chosen switch date.

Is your money safe?

Your money is perfectly safe and even if payments are made to your old account they will automatically be directed to your new account.

If for whatever reason you do think that there is an issue, you should contact the new bank.

Does bank switching affect your credit score?

THere’s some conflicting information about whether switching bank accounts affects your credit score.

I use Experian as my default agency to check whether my score has changed and in recently switching, I found that my credit score dropped by 6 points.

According to Experian, this should only be temporary and recover quickly.

With this in mind, you shouldn’t be switching from one bank account to another without giving your credit score a little time to recover.

What do you need to do to switch?

switching bank accounts is quite painless and takes very little effort on your part.

Having done your research and finding a bank that meets your needs, apply, so long as you’re approved, choose a switching date and will do the rest for you, this includes switching your direct debits and standing orders over to them and closing your old account.

How long does it take to switch?

As long as you’re switching to a bank that is using the current account switching service, it shouldn’t take any more than seven days to switch over to your new account

What happens to the money in your old account 

Any money that is in your old account will be transferred to your new account by the new bank.

Conclusion

While the offer of money to entice you from a bank might be appealing in the short term, there is a lot more to banking than that and the most important factor in choosing a bank should be their customer service and whether you can actually get hold of your money when you need it.

Switching banks shouldn’t be taken likely and you have to remember that you have to choose a bank that fits how you might interact with a bank.

Are you someone that likes to do your banking in-branch or are you happy to do everything via an app or online?

In summary, the questions you should be asking are:

1. How do I interact with a bank?
2. Is the app any good?
3. Are others satisfied with the bank’s overall service?
4. Do I need the benefits that the bank offers?
5. Is the ability to make mobile payments important to you

Are you someone that changes banks often, or have you been with your same bank ever since you can remember, let me know in the comments below.