How to Switch Your Business Bank Account
Rosie Goymour
Most business owners stay with their bank far longer than they should. Not because they are satisfied with the service, but because switching feels like more work than it is worth — the direct debits to transfer, the suppliers to notify, the timing to get right. In most cases, those concerns are bigger than the reality. The Current Account Switch Service handles most of the process for you, and the seven-working-day guarantee is exactly what it sounds like. This guide walks through how it works, what to check before you start, and what to look for in your next account.
Signs it might be time to switch
Before getting into the mechanics, it is worth being honest about what would actually make a switch worthwhile for your business. Switching for its own sake rarely makes sense. Switching because your current account is genuinely not serving you does.
Some of the more common reasons businesses switch:
Monthly fees have increased but the service has not improved
Poor integration with accounting software is creating unnecessary reconciliation work
Transaction fees are eating into margins in a way that felt acceptable early on but no longer does
Customer support is slow or difficult to reach when something goes wrong
A new account with a free banking period would meaningfully reduce costs at a time when cash flow matters
None of these is a reason to switch in isolation, but if several apply, the seven-working-day process starts to look like a reasonable trade-off for a much better fit.
What is the Current Account Switch Service?
The Current Account Switch Service (CASS) is a free service that manages the switching process on your behalf. Operated by Pay.UK and available to both business and personal account holders since 2013, it is used by all the major UK banks and a growing number of digital providers.
When you switch using CASS, your new bank takes responsibility for transferring your direct debits and standing orders, and for setting up a redirect from your old account. Your old account is closed automatically once the switch completes. For 36 months afterwards, any payments that still arrive at your old account details are automatically forwarded to your new one, and the sender is notified of the updated details.
The seven-working-day guarantee means that if anything goes wrong during the process — a missed payment, a processing error, or a charge arising from the switch — your new bank is required to correct it and cover any resulting costs.
Are all business accounts eligible?
CASS covers the majority of UK business current accounts, but not all. Accounts held with overseas banks, some payment institution accounts, and certain specialist accounts fall outside the service. Your new bank will confirm eligibility at the outset, so there is no need to investigate this yourself in advance.
If your account is not CASS-eligible, you can still switch — it just requires transferring direct debits and standing orders manually. Most banks will provide a direct debit mandate list on request, which gives you everything you need to recreate them with your new provider. It is more work, but straightforward once you have the list in front of you.
What to do before you switch
A small amount of preparation makes the process much smoother.
First, download or request a list of your direct debits and standing orders from your current bank. CASS will handle the transfers, but having your own record lets you cross-check that everything arrives correctly after the switch completes.
Second, check for any products linked to your current account. An overdraft facility, a business credit card, or a savings account with the same provider will not switch automatically — these need to be addressed separately. If you have a business loan with your current bank, read the loan agreement before switching. Some loan terms require you to maintain a current account with that provider.
Third, think about timing. Switching a few weeks before a busy period — a large payroll run, a VAT quarter end, a significant supplier payment — gives you more breathing room if anything needs attention after the switch completes.
Finally, check whether your new bank is offering a switching incentive. Cash bonuses for business account switchers appear occasionally and are worth factoring in when you are comparing options.
How to switch — step by step
Once you have chosen your new account and your application has been approved:
Tell your new bank you want to switch using CASS. You will complete a Current Account Switch Agreement, which authorises them to manage the process.
Choose your switch date — this must be at least seven working days from the date you sign the agreement.
Your new bank contacts your old bank to initiate the switch. Direct debits and standing orders are transferred, and a payment redirect is put in place.
On your chosen switch date, your remaining balance is transferred and your old account is closed.
For three years after the switch, any payments sent to your old account details are automatically forwarded to your new account and the sender is notified.
You do not need to contact your old bank yourself. Your new bank manages the entire process.
What to look for in your next account
The right account depends on how your business actually operates. A few factors are worth working through before you commit.
Monthly fees and transaction costs. Some accounts are free; others charge between £5 and £25 a month or more. Free is not automatically better — the question is whether the features justify the fee. Equally, accounts that look cheap can become expensive under high transaction volumes. Check the cost per payment in and out, and look at any charges for cash deposits if those are relevant to your business.
Accounting software integration. Direct bank feed connections to Xero, QuickBooks, or FreeAgent save meaningful time on reconciliation each month. For businesses using these tools, this is often the feature that tips the decision.
Overdraft availability. Not all business accounts include an overdraft facility, particularly among newer digital providers. If having a buffer matters to how you manage cash flow, confirm this before you apply rather than after.
Support and access. Digital-only banks offer convenience and often lower fees, but may not have dedicated relationship managers or branch access. If your business occasionally needs a direct conversation with someone who knows your account, that is worth weighing against the cost saving.
Onboarding speed. Some digital banks can open a business account within 24 hours. Traditional banks typically take longer. If you have a timing constraint, factor this into which providers you consider.
To compare current accounts across the market on fees, features, and eligibility criteria, visit the HowMuch business bank account comparison page.
Frequently asked questions
How long does switching a business bank account take?
Using CASS, the switch completes within seven working days of your chosen switch date. Choosing and applying for a new account will add time on top — some digital banks approve applications within 24 hours, while traditional banks may take longer. Allow two to three weeks from the decision to the switch completing.
Will switching affect my credit file?
Applying for a new business bank account may involve a credit check, leaving a soft or hard footprint depending on the provider. The switch itself does not affect your credit file. Closing an existing overdraft facility may have a minor impact on your available credit, though for most businesses this is negligible.
What if something goes wrong during the switch?
The CASS switching guarantee requires your new bank to correct any errors and refund any charges arising from problems in the process. Keep a record of your direct debits and standing orders before switching so you can identify any discrepancies quickly and raise them with your new bank promptly.
Can I switch if I have an overdraft or loan with my current bank?
An overdraft you are using will need to be cleared or replaced before your account closes — your new bank may be able to offer an equivalent facility. A business loan is separate and will generally remain with your current bank after the switch. Check your loan agreement for any conditions tied to maintaining a current account there, and speak to the bank before you initiate the switch if you are unsure.
Is it free to switch business bank accounts?
The switching process itself is free. Your new account may carry a monthly fee, and your old bank may charge for account closure in some circumstances, though this is uncommon. Check your existing account's terms and conditions before you start.
This article is for informational purposes only and does not constitute financial advice. Always seek independent advice before making financial decisions.
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