Switching banks? Bring your direct debits with you
August 3, 2022
Switching banks can be an intimidating task – but if you do need to switch current account providers, take action sooner rather than later. Otherwise you run the risk of delays, or issues with paying your direct debits.
Our recent research on current account switching found that moving direct debits was the biggest challenge among those who had started or completed switching.
To help make the process smoother for you, we’ve created a step-by-step guide to moving direct debits. Read on to find out how to move your direct debits when switching banks.
Step 1: List your direct debits
Go through your current account statements to see how many direct debits you regularly pay. Common direct debits include:
- household utilities
- gym membership
- insurance cover
- loan repayments
Step 2: Create a contact list
Making a list of all your direct debit payments will show you which businesses you need to give your new current account information to. This will help you avoid missed or late direct debit payments.
Remember to also update your new debit card details if you have recurring payments set up. For example, a Netflix subscription or a toll account.
Step 3: Confirm the transfer process
The transfer process for direct debits may be different for each business. You may have to complete a direct debit form with your new account information. You may be asked to do this online, in person, or by post. Contact each business directly for more information.
Did you know?
Under the Central Bank’s Switching Code, you can ask your new provider to switch your direct debits. Ask your provider for a switching pack for more details.
Step 4: Plan your switching dates
Direct debits can take up to 14 days to process.
Plan your switching dates carefully to allow for plenty of time for your direct debits to be transferred.
Your broadband direct debit comes out of your account on the fifth day of every month. Aim to contact your provider as soon as possible after the fifth with your new account information. This will help to avoid delays in updating your details before your next payment is due.
Step 5: Try to keep money in your account
Try to keep money in both your new and old accounts to avoid unpaid direct debits, which could result in late payment fees.
We have created a suite of helpful information on the switching process. Visit our switching Hub for advice, top tips and essential information.
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