Partner Article

Switching Bank Accounts: Keep it stress-free

Switching bank accounts may seem like a daunting, onerous task but it can be made easier with a little prior planning. It’s interesting because according to a recent article in The Guardian’s Money supplement, the majority of us choose a bank in our teens and stick with them right through adulthood.

But it doesn’t have to be like this, you know. Many of us tend to stick with our bank because we believe changing or switching bank accounts is too much of a hassle to bear. But according to The Guardian, our fears are being driven by nothing more than a mere myth and poor understanding of the switching process.

So, if you’re contemplating switching bank accounts take heed of these four simple tips from Santander, which could help you make the process a little bit more…well, bearable.

Tip #1: Agree a switching date

It’s best to think about the best time of the month to switch your accounts. Consider the date you’re paid by your employer, the date council tax is paid, energy bills, etc, etc.

If all your payments tend to leave your account at the same time, or roughly the same time, choose a date just after this.

However if your payments are a little more scrambled across the month, choose a date after your largest outgoing. So, for example, if a large bulk of your monthly outgoings is paid on rent, then choose a date for switching after this transaction is made.

Note: it’s worth keeping some money in each account during the switching process, just in case you slip into the red.

Tip #2: Check your direct debits and standing order transactions

So, you’ve found an account, which is best suited to your personal needs and financial circumstance - great. So now we’ll ask whether you want to switch your direct debits and standing orders and ask you for a list of your current direct debits and standing order from your old bank within three days of us accepting your bank account application. This may sound the hassle alarm-bell in your head but the process shouldn’t take too long. They can notify companies you have direct debits with of your new account and set up standing orders for you.

Tip #3: Let them know. Shout about it.

When you switch bank accounts you need to make sure your employers and pension provider are aware of the move. We offer template letters for you to send out to organisations that regularly pay into your account. Simply fill in the relevant details and include your new bank account details and they’ll do the rest.

Tip #4: Finalise the switch

Once you’ve completed the switch make sure you contact your old bank in order to cancel your old account. If you don’t you could be paying those standing orders and direct debits you had previously set up. This helps cover your back in case you do fall into the red and incur overdraft charges.

If you do incur such charges with your old bank, in most cases they will reimburse you the money so don’t panic just yet.

You can also ask your old bank to transfer your account balance into your new bank account so that you can instantly see the funds available to you.

For more information visithttp://www.santander.co.uk/csgs/Satellite?canal=CABBEYCOM&cid=1210607928177&cidAgrup=845616358929450&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateY2&posSel=1

This was posted in Bdaily's Members' News section by Fianancial Confession .