How to switch a business bank account
Switching your business bank account could help you save on fees or find a provider that better suits your needs. The process can be straightforward, but you'll need to check which payments and services will move automatically. Here's how to choose a new account, arrange your switch and keep your business payments running smoothly.
Key takeaways
Eligible businesses can use the free Current Account Switch Service to move accounts in seven working days
Direct Debits, standing orders and incoming payments are handled automatically, but some linked business services need updating separately
You can compare things like fees, features and eligibility, but remember to look at any existing overdrafts or borrowing arrangements before switching
How do I switch my business bank account?
You can switch your business bank account by choosing a new provider, opening an account and arranging to transfer your payments and balance:
Compare business bank accounts: Find a provider offering the fees, features and services your business needs
Look at your switching options: See whether both providers support the Current Account Switch Service (CASS)
Open your new account: Apply and complete the provider's identity and business checks
Arrange the switch: Agree a switching date and confirm which payments and services will transfer
Check everything works: Make sure payments are reaching the new account and update any linked services separately
If you're eligible for CASS, your new bank will manage the switch and arrange for your old account to close.
Can I use the Current Account Switch Service for my business?
Yes, your business may be able to use the Current Account Switch Service if it has an annual turnover of no more than £6.5 million and fewer than 50 employees. Both providers must participate, and the accounts must be eligible for the service.
The service is free and transfers your regular payments and remaining balance to your new account, and your old account is then closed automatically.
How long does switching take?
An eligible CASS switch usually takes seven working days, but you'll need to open your new account and complete the provider's checks before arranging the switch. You can choose a switching date with your new provider, as long as it's at least seven working days away and falls on a working day.
You can check which providers participate on the Current Account Switch Service website.
What should I look for in a new business bank account?
The right account depends on your business's payment habits, banking needs and budget - some things to consider include:
Account charges: Such as monthly fees, introductory offers and transaction costs
Payment options: Whether you can make bank transfers, cash deposits and international payments
Digital banking: If you can use mobile apps, online banking and accounting software integrations
Access and support: If it offers branch services, customer support and permissions for multiple users
Borrowing facilities: If you’ll have access to business overdrafts, a line of credit, or other lending options where available
For example, an account with no monthly fee might cost more overall if your business makes frequent chargeable transactions. You can compare business bank accounts with MoneySuperMarket to explore available providers and find an account that suits your needs.
What do I need before I switch?
You'll usually need your existing account details, business information and identification documents before arranging a switch, although your new provider should tell you what they need from you. It helps to prepare the following:
Account information: Your current account number, sort code and recent statements
Business details: Your registered or trading address, company information and financial details where requested
Proof of identity: Identification for directors, partners or authorised account holders, as required
Payment details: Information about regular payments, customers, suppliers and linked business services
Borrowing arrangements: Details of any overdrafts, loans or other facilities connected to your old account
You may also need approval from other directors, partners or authorised signatories, depending on your business structure. Save your old bank statements before switching, as your transaction history won't automatically transfer to the new account.
What will move automatically, and what must I update myself?
If you use the full Current Account Switch Service, your new provider will transfer your regular bank payments and remaining account balance. However, some services connected to your old account will need updating separately.
Handled by CASS | What you may need to update yourself |
|---|---|
Direct Debits and standing orders | Recurring debit card payments and subscriptions |
Regular incoming bank payments | Card terminals and merchant payment services |
Remaining account balance | Accounting software and bank-feed connections |
Payments sent to your old account are redirected | Third-party account access and payment permissions |
Closure of your old account | Payroll software and other linked business systems |
CASS redirects payments made to your old account for at least three years, but it's still worth updating customers and suppliers with your new details.
📣 Important: Avoid setting up new payment arrangements on your old account during the seven working days leading up to your switch. These won't be transferred automatically.
What if I have an overdraft, loan or merchant services?
You may still be able to switch business bank accounts if you have an overdraft or other linked services, but these arrangements won't necessarily transfer with your account. If you're overdrawn, you'll need to agree to a new overdraft with your new provider or arrange to repay what you owe before switching.
Approval for a new overdraft isn't guaranteed, while business loans and merchant services may also need separate arrangements. For example, a cafe with an overdraft and card payment terminal might need to arrange new borrowing facilities and update its card payment provider before switching accounts.
Confirm these arrangements with your new bank and any relevant lenders or payment providers before you agree a switch date.
How do I switch without the Current Account Switch Service?
You can still move your business banking if you're not eligible for CASS or one of your providers doesn't participate, but you may need to arrange more of the process yourself.
Some providers offer a Payment Transfer Service, which can help move selected payment arrangements. Unlike a full CASS switch, it doesn't automatically close your old account, transfer your remaining balance or provide the same switching guarantee.
If you're arranging a manual switch:
Open your new account: Complete the application and any required checks
Update your payments: Move Direct Debits, standing orders and other regular transactions
Tell customers and suppliers: Provide your new account details and update linked services
Monitor both accounts: Check that payments are working correctly and no transactions are being missed
Close your old account: Transfer any remaining funds and arrange closure only when you're confident everything has moved
A manual switch may take longer than seven working days, depending on your providers and the payments involved.
What should I do if a payment goes wrong during the switch?
If a payment is missing, delayed or sent to the wrong account, look at the transaction details and contact your new bank as soon as possible. If the payment is urgent, you should also contact the customer, supplier or organisation involved to explain the situation and arrange payment if necessary.
What does the Current Account Switch Guarantee cover?
If you're using CASS, your new bank must correct switching errors and refund any charges or interest paid or lost because of a failure in the switching process. If the problem isn't resolved, you can make a formal complaint to your provider - depending on your business's eligibility, you may also be able to take an unresolved complaint to the Financial Ombudsman Service.
Frequently asked questions
Can I keep my old business bank account open?
Yes, but not if you're using the full Current Account Switch Service, which automatically closes your old account. If you want to keep both accounts, ask your new provider about a partial switch or alternative transfer arrangements, but keep in mind these won't usually have the same CASS guarantee.
How long are payments redirected after switching?
The Current Account Switch Service redirects payments sent to your old account for at least three years, although the redirection arrangements can continue beyond this where necessary. It's still a good idea to update your customers, suppliers and other organisations with your new details.
Can I cancel a business bank account switch?
Yes, you can cancel a full CASS switch up to seven working days before your agreed switching date - just contact your new bank to arrange this. If the switch is already underway, your options may be limited, so speak to the provider as soon as possible.
Will switching my business bank account affect my credit score?
Switching accounts doesn't automatically damage your credit score, but your new provider may carry out credit checks when you apply. These could affect your credit record, particularly if you're applying for an overdraft or other borrowing, so you may want to check what type of credit search the provider will carry out.
Does it cost money to switch business bank accounts?
The Current Account Switch Service is free, but your new business bank account may have monthly fees, transaction charges or costs for additional services. You may also need to settle outstanding borrowing or other charges connected to your old account, so check both providers' terms before switching.
Author
Victoria Russell
General Manager - Commercial
Vikki has worked across financial services for over 20 years, and for the last 15 years, created and nurtured a career within MoneySuperMarket Group, leading to her current role as General Manager...
