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What is the Current Account Switch Service?

CASS is a free, government-backed scheme that lets eligible UK businesses move their current account from one participating bank to another. It handles the transfer of your balance, all direct debits, and standing orders, and for at least 36 months it automatically redirects any payments sent to your old sort code and account number to the new one - so clients and suppliers who don't update their records in time won't cause you a problem.

According to Pay.UK, over 1,000,000 switches were completed in 2025. It's available to businesses with an annual turnover under £6.5 million and fewer than 50 employees. If your business is larger than that, you'll need to negotiate a manual transfer directly with your banks.

All major high street banks and most challenger banks participate, including Barclays, Lloyds, HSBC, NatWest, Starling, Tide, and Monzo Business. You can check the full list of participating institutions on the Current Account Switch Service website.

Switching

It's a fact that people are more likely to divorce their other half than switch their business bank account. If you are worried about switching, then you shouldn't be as all business accounts are covered by a 7-day switcher guarantee. (Just make sure your bank is registered with this scheme!).

What's important?

• Don't just look at the free period, work out how much it will it cost after the fee free period

• Ensure you know all fees relevant to your business to avoid surprises!

• Switching can be done within 7 days

• Make sure that those you bill are aware

Before You Switch

Rushing into a switch without preparation is where disruption creeps in. A few hours spent on the following tasks will make the transition almost invisible to your customers and suppliers.

Audit your outgoing payments. Log in to your existing account and list every direct debit, standing order, and continuous payment authority (CPA) currently active. CPAs are recurring payments set up using your debit card number rather than a direct debit instruction.

Download your statements. Your transaction history won't transfer to the new bank. Download at least six years' worth of statements in PDF or CSV format before the old account closes. You'll need these for tax purposes, and HMRC may ask for them during an investigation years after the switch.

Check your accounting software connection. If you use Xero, QuickBooks, Sage, or FreeAgent with a live bank feed, that open banking connection will not carry over automatically. Note which software you're connected to so you can reconnect once the new account is live.

Identify your merchant services provider. If you take card payments through a terminal, Stripe, PayPal, Worldpay, or a similar gateway, the settlement account that receives your card takings is linked manually to your bank details. You'll need to update this in your payment provider's dashboard after the switch.

Check your switch date against your payment calendar. CASS lets you choose your own switch date. Avoid dates that land during payroll runs or the same day as large supplier payments. Scheduling the switch for mid-month, shortly after your main payments go out, reduces the chance of any timing overlap.

The Benefits of Switching Business Bank Accounts

Free business banking periods available

Account providers will be trying to entice you to switch providers to them so they might offer extra benefits, such as free business banking for periods up to 26 months

Flexible overdraft options

When switching accounts, there are a vast variety of accounts to choose from, with a huge range of overdraft options if you choose to add one

Low monthly fees

As an incentive for you to choose their account service, account providers will generally offer low monthly rates after any free banking period

Your new account within 7 days

All bank account providers now have to offer a switching guarantee, meaning your new account must be ready within 7 days of your chosen date

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The 7-day Switching Process Explained

Once you've chosen your new provider and applied for the account, the switch itself follows a fixed process:

Day 1 (your switch date minus 7 working days): Your new bank contacts your old bank to initiate the transfer. You sign a Current Account Switch Agreement authorising the process.

Days 2-6: Your new bank arranges the transfer of all direct debits and standing orders. Your old bank will close the account to new payment setups during this period.

Day 7 (your switch date): Your remaining balance transfers across. The old account closes. Any payments directed to the old account from this point are automatically redirected to the new one.

Some banks refer to a 'full switch' versus a 'partial switch.' A full switch closes the old account and moves everything. A partial switch keeps the old account open, but moves specified payment arrangements to the new one. Most businesses benefit from a full switch since the automatic 36-month redirection only applies to full switches.

What transfers automatically:

• Your account balance

• All direct debits (including HMRC payments, supplier DDs, and loan repayments)

• Standing orders

• Incoming payments and credits are automatically redirected for 36 months

• Your old account is closed on switch day

What you'll need to update yourself:

Item	Action needed
Continuous payment authorities (CPAs)	Update card details with each merchant
Accounting software bank feed	Disconnect old account, reconnect new one
Payment gateway/merchant services	Update settlement account in provider portal
Payroll software	Update bank details for salary payments out
Invoice templates	Update sort code and account number
Customer BACS references	Notify key clients paying by BACS
HMRC direct debit for VAT/PAYE	Usually transfers, but confirm on HMRC portal
Expense management tools	Re-authorise bank connection

The Current Account Switch Guarantee protects you if something goes wrong. If a payment is lost, misdirected, or results in a charge as a direct result of the switch, your new bank is obliged to refund any interest or fees incurred on either account.

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Documents You'll Need

The new provider will run their own verification checks before you can initiate a switch. What they ask for depends on your business structure.

Sole traders: Photo ID (passport or full UK driving licence), proof of address dated within the last three months, National Insurance number, and your business trading name if different from your personal name.

Limited companies: Photo ID and proof of address for all directors and significant shareholders (those holding 25%+), your Companies House registration number, your Certificate of Incorporation, and sometimes a recent set of accounts or management accounts. Your new bank may pull information directly from Companies House, but having the documents ready speeds up the application.

Partnerships and LLPs: Partnership agreement, ID for all partners, proof of business address, and your UTR (Unique Taxpayer Reference) or Companies House number if registered.

Applications are mostly completed online now, and many providers can give a decision within 24–48 hours, though some challenger banks like Tide can approve accounts the same day.

Choosing a New Provider

The obvious trigger for switching is dissatisfaction — poor online banking, slow customer service, or rising fees. But switching is also a chance to actively improve your banking setup rather than just escape a bad one.

Here's what to weigh up when comparing business bank accounts:

Monthly fees and transaction costs. High street banks typically charge £6-£12.50 per month for a business current account, while several challengers offer free accounts. But factor in transaction fees too - cash deposits and cheques can add up quickly for retail businesses

Introductory offers. Providers compete hard for switching customers. Deals change regularly, so it pays to check current switching offers before committing.

Free banking periods. Some providers offer free day-to-day banking for periods of 12-30 months. These are worth calculating properly - a 30-month fee-free period at £10/month is worth £300, but only if the transaction fees during that period are also reasonable.

Online and mobile banking. If you rely on real-time notifications, bulk payment tools, or third-party integrations, check what the new bank's app actually does before switching. Standards vary significantly between traditional banks and challengers.

Overdraft access. If you use an overdraft facility, confirm what the new provider will offer before switching. CASS does not transfer overdraft arrangements - you'll need to apply separately, and approval isn't guaranteed.

Accounting software integrations. Most major providers now support Xero, QuickBooks, and Sage via open banking. But the quality of the connection varies. Challenger banks often have tighter native integrations.

If you're a sole trader looking at your options, take a look at our sole trader bank account comparison. If you've recently incorporated or are setting up for the first time, our startup bank accounts guide covers providers with the best introductory terms.

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FAQs on Switching Business Bank Accounts

Will switching bank accounts affect payroll?

Payroll software that pays employees by BACS or Faster Payments uses the bank account you configure in the system. CASS won't update this automatically. Before your switch date, log in to your payroll system and update the source bank account. If your next payroll run falls within the 7-day switching window, schedule the switch to complete before the run or process payroll from the old account first.

What happens if a client pays my old account?

For 36 months after the switch, any incoming BACS or Faster Payments sent to your old sort code and account number are automatically redirected to your new account. The payer's bank receives a notification that the account has moved. You don't need to do anything - but it's still worth sending key clients your new details directly to avoid delays.

Can I switch bank accounts if I have an overdraft?

Yes, but your overdraft doesn't transfer. You'll need to apply for an overdraft at the new bank separately. If you're likely to need one, apply before or shortly after switching so you're not left without a facility during the transition.

What if my switch is rejected?

CASS can fail if there's a problem with your new bank application (e.g., you don't pass their checks) or if the account type isn't eligible. In this case, your old account remains open, and no changes are made.

You can then apply to a different provider or opt for a manual switch, where you open the new account and move payment arrangements across yourself.

Does CASS cover all banks?

Over 50 UK-licensed banks and building societies participate. If your old or new provider isn't a CASS member, you'll need to switch manually. This involves contacting each supplier, client, and payment provider individually to update bank details. It's more time-consuming, but entirely doable.

Is there a cost to switch business bank accounts?

Switching banks with CASS is free. Your new bank may charge account fees from the point your account opens, but the switching service itself carries no charge at all.