If you’re unhappy with your current account provider, have you considered earning money by making the switch to a new bank? Personal finance expert Michael Brown reveals all.
In 2013 the Government launched the current account switch service (CASS), a system designed to help people ‘safely and reliably’ change bank accounts within seven days.
Year-on-year, the amount of people using this service is increasing. In the 12 months leading up to October 2021 the CASS switched over 722,000 current accounts and in the same number of months to October 2022 this figure stood at nearly 860,000.
So, if you’re currently unhappy with your banking provider, then why not use this tool to change current accounts? Below we’ve explained the CASS in more detail and how you can use it to receive a cash boost.
What is the current account switch service?
The CASS is an independent service you can use to switch current accounts. It’s free of charge and promises to complete your move within seven working days.
The process includes transferring your balance, direct debits, and standing orders to your new account.
One change you’ll have to make manually are subscription charges, especially where these are taken directly from your payment card. Popular examples of these include Spotify or Netflix, essentially regular payments not made by direct debit.
Over 40 different banking providers are currently part of the CASS, including some of the most well-known high street banks. These providers will often display the CASS’s logo on their marketing brochures, websites, and other marketing tools.
So, when looking for a new current account make sure to keep an eye out for their logo.
How can I earn money from the CASS?
While some people use this service because they’re unhappy with their current account providers, you can cleverly use this tool to earn extra money.
Some banks and building societies offer incentives for switching to its current accounts, which takes the form of a cash boost.
Last year in November there were some providers who were prepared to offer eligible switchers up to £200 to use the CASS to bank with them.
With an economy in recession, such an extra cash boost can be a welcome bonus to your personal finances.
However, this doesn’t work for everyone. If you have changed current accounts recently making another change in quick succession could harm your credit score and therefore your chance of borrowing in the future.
This is why changing current accounts is not a sustainable way to keep earning money and it’s not wise to do this on a regular basis.
If you are interested in switching current accounts for a cash incentive visit moneyfacts.co.uk/current-accounts/best-switching-offers/ for the best switching offers currently available on the market.
