Switch business bank accounts: what moves and what stays

Confirm eligibility before planning the date

The Current Account Switch Service is available to qualifying businesses with annual turnover not exceeding £6.5 million and fewer than 50 employees. Small trusts can also qualify under the service's published conditions. Ask the receiving bank to confirm eligibility, including participation by both account providers.

If the business falls outside the service, that does not mean it cannot change accounts. It means the transfer process and protections need to be agreed separately. Avoid assuming the full Switch Guarantee applies to a manual or partial transfer.

Start with the legal account holder. The name and entity on the new account need to match the arrangement being switched. A sole trader incorporating a company is making a legal-entity change as well as a banking decision. Explain that to the bank rather than expecting a standard switch to resolve it.

Check the account mandate too: who can authorise the switch, who approves payments and who holds access credentials. If the only authorised signatory has left, deal with that before trying to schedule the transfer.

Our guide to opening a business bank account explains the preparation for onboarding. The switch date should follow a usable new account and agreed facilities, not simply submission of an application.

Understand the seven-working-day process

The service completes the switch over seven working days, with the date agreed through the receiving bank. Account opening and its checks are separate. The switch date cannot be a weekend or bank holiday.

The existing account balance transfers on the agreed date and the old account closes under a full switch. Do not close it independently. The banks manage that part of the service and need the account available for the process.

Check the calendar around the chosen date. Payroll, tax payments, a regular stock order or a large customer receipt may be easier to monitor on a different day. This is an organisational choice, not a reason to expect the bank to guarantee every wider business process.

Tell your bookkeeper and payroll administrator what is changing. Ask them to identify payment files or authorisations that require action. A bank transfer process does not automatically update every template held in another system.

During the switch window, follow the receiving bank's instructions about creating new payment arrangements. The service's business guidance says arrangements created at the old bank within the final seven working days are not automatically picked up. Put new arrangements on the new account as instructed.

What transfers and what needs attention

Direct Debits and standing orders are handled within the service. Payments sent to the old account are redirected, with redirection operating for a minimum of three years and longer where needed under the service's arrangements.

That is valuable, but it is not the same as transferring every product held with the old bank. Use the table to organise the separate conversations.

Download account records you will need. Transaction history is not transferred as part of the switching service. Keep statements and relevant correspondence in the business's records rather than relying on continued access to the old banking app.

Resolve the overdraft before the switch

The overdraft is a lending facility, not just a negative balance that automatically follows the account. The new bank makes its own decision about any facility you request. It may not offer the same arrangement, or any overdraft at all.

If the new bank does not agree a replacement, the existing overdraft needs another repayment arrangement before the switch. Do not schedule the transfer on the assumption that acceptance of an account application also means acceptance of credit.

Ask for the position in writing and share it with whoever manages cash flow. Include the facility's availability, conditions and any separate documentation. An offer that still requires acceptance or fulfilment of conditions is different from a facility ready to use.

Check other borrowing with the old bank. A loan may continue after the current account closes, but its payment route needs to work. Security or other contractual links may also need review by the bank or your adviser.

This is a good point to distinguish the reason for moving. Poor account service, transaction charges and a need for borrowing are related business concerns but different product questions. A replacement account should be assessed on its own terms rather than treated as a route to assured credit.

Update the systems around the account

Card takings are often paid into the account through a separate merchant-services contract. Contact that provider and follow its process for changing the settlement destination. Confirm what evidence it needs and when the new details become effective.

Open banking connections also need attention. These are permissions allowing authorised services to access account information or initiate payments. The switch service does not transfer the permissions, and the same functionality may not be supported by every account.

Ask your accountant or software administrator to check the new connection before relying on automatic imports. Plan how to avoid gaps or duplicates around the date of change. Retain the final old-account statement so the reconciliation can be completed.

Review stored debit-card payments separately from Direct Debits. A subscription charged to a card number is not the same as a collection against bank account details. Replace the details through the supplier's normal secure account route.

Update invoice templates and tell regular customers through a controlled process. Customers may reasonably verify a bank-detail change independently because such requests are a common fraud route. Give them a reliable way to confirm the change using contact details they already trust.

Know what the guarantee covers

The Current Account Switch Guarantee addresses errors in the switching process. Charges or interest arising from a qualifying switching failure are refunded through the receiving bank when brought to its attention. It is not an assurance of account approval or a blanket reimbursement for every inconvenience connected with moving banks.

If something goes wrong, contact the new bank with the switch reference, affected payment and relevant dates. Keep any charge notice or evidence of interest. Ask what corrective action is being taken and whether you need to contact the payment recipient.

A partial switch, where the old account remains open, does not carry the full service's guarantee and redirection arrangements. That may still be a deliberate business choice, but make it knowingly. Ask which payments are being moved and who remains responsible for the rest.

For the wider comparison, examine service as well as charges. The CMA requires relevant account providers to publish independent business banking service-quality information. It can prompt useful questions about support and account access without proving which provider fits your business.

Our guide to business current account fees shows how to compare the tariff against your actual activity. Keep that assessment separate from the mechanics of transferring the account.

After the switch, review the first complete statement and reconcile it against your own payment records. Check that expected receipts, direct debits and standing orders have reached the intended account. Keep the switch confirmation and any reported error together so the new provider can investigate using a clear chronology.

What to do next

Use recent statements to create a payments audit. Start with a representative quarter, then look further back for annual or seasonal items. The purpose is to identify arrangements, not merely total the money in and out.

1. 1Confirm switch-service eligibility and that the new account is open and usable.
2. 2Resolve overdraft requirements and linked lending before choosing the switch date.
3. 3List Direct Debits, standing orders, stored card payments and merchant settlements.
4. 4Arrange accounting reconnection, payroll changes and customer communications.
5. 5Agree the switch date with the receiving bank and follow its instructions.
6. 6Monitor the first payment cycle and retain the final old-account records.

Assign an owner to anything outside the switch service. A short note saying the card terminal is dealt with is less useful than confirmation of the provider's accepted change and effective date.

After completion, reconcile the closing and opening positions and check the next expected receipts. The objective is not to inspect every transaction forever. It is to confirm the business's normal payment cycle works on the new account and that any exceptions have a clear route to resolution.