How to open, switch and close a bank account

Bank accounts explained

Current accounts allow you to make and receive payments, such as paying bills, withdrawing cash or being paid your salary. Here we explain the basics of banking, key terms and highlight the fees and charges to watch out for.

Key features at a glance

Here are what all the terms mean:

debit card – lets you spend online or in shops, and take money out at cash machines
bank transfer – lets you move money between your accounts or pay someone else
standing order – a bank transfer you want to repeat, such as paying rent or moving money to a savings account
direct debit – lets companies take money you owe them on a set date, usually for bills like energy or mobiles
overdraft – lets you spend more than you have, but you’ll usually pay interest every time you use this
online and mobile banking – giving you secure, 24/7 access to your accounts
branch or Post Office banking – if you want to manage your money in person.

How best to manage a current account

A well-managed bank account often makes your life easier. It can also improve your credit score, making you more likely to get the best products.

Here are some top tips:

check your balance often – make sure you have enough money available for spending and payments (you could be charged if you don’t)
check transactions and report any you don’t recognise quickly – you’ll usually get a refund if it’s fraud
if you use your overdraft, know how you’ll repay – clearing as soon as possible will reduce interest charges

if you think you’ll miss a payment, ask the provider you’re paying for help – they will listen and provide ways to support you. See talking to your creditor for help.

Have you missed a payment?

Use our Debt advice locator tool  to find free and confidential debt advice online, over the phone or near to where you live.

Bank fees and charges to watch out for

These vary per bank, but here are the main ones to check:

1. If you spend more than you have:

daily interest for using an overdraft – often up to 40% APR (annual percentage rate) until paid back
a fee if you don’t have enough money to cover a payment – usually called an unpaid transaction fee.

2. Using your debit card abroad:

a foreign exchange fee, often around 3% of the transaction amount
a spending or cash machine charge, typically between £1-£3 each time you use your card (except Euros in the EU).

Banks might also charge for certain requests, such as transferring very large sums of money or getting copies of statements.

Look at different current accounts based on their fees and charges.

Protect yourself from fraud and scams

Banks use advanced technology to keep your account safe, such as facial recognition to access your mobile banking app. But there are many online and phone scams to watch out for.

The aim is to get you to share passwords and other sensitive details so fraudsters can steal from your account.   

To help, follow these rules:  

never share passwords or online banking login details with anyone – including over the phone and via text or email
if your bank contacts you out of the blue it could be a scammer – to be safe, hang up and call them back on the number printed on your card
always log out of online banking sessions.

Read more in our beginner’s guide to scams.

You can complain if you’re not happy

If your bank makes a mistake or you’re unhappy with something they’ve done, follow these steps:  

Contact customer services and ask them to put things right – if you can’t agree on a resolution, then 
Make a formal complaint – they have eight weeks to investigate and give a final response. If you still don’t agree, or the timeframe has passed, you can 
Take your complaint to the free Financial Ombudsman Service – you’ll get an independent decision on whether the firm’s response was fair or if they need to do more.

For more information, see guide Claiming compensation if you’ve been mis-sold

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How to open a bank account

Opening a current account is usually a straightforward process, but you often need to have certain forms of ID and proof of address. Here’s everything you need to know.

Compare accounts

There are many options to choose from, including high-street banks with branches, online-only banks, accounts with perks such as cashback and basic bank accounts.

To help, our compare bank accounts tool lets you view account features, fees and charges. Or we've step-by-step help in how to choose a bank account.

If you’d find current account reviews helpful, see:

If you live in Northern Ireland, try the Consumer Council’s Current Account Comparison TableOpens in a new window

Check the eligibility criteria

While making your shortlist of accounts, it’s important to check you’re able to apply. You typically need to be aged 18 or over and a UK resident, though some accounts might also require you to:

pay in a minimum amount each month
earn a certain salary
pay a monthly fee
have a good credit history
own a smartphone.

If you’re after a bank you can visit in person, it’s also worth making sure your local branch opens at convenient times.

Student? See Student and Graduate bank accounts.

Under 18? See MoneySavingExpert's best children’s bank accountsOpens in a new window

See what ID you’ll need

Most banks will ask for a driving licence or passport to prove your identity – or a photo if you’re applying online, often along with a selfie.

If you don’t have these, check if they’ll accept other recent documents (typically under three months old) such as a:

Council Tax bill
utility bill, like gas or electricity
bank or building society statement
credit card statement
HMRC letter or tax statement
mortgage statement
tenancy agreement
benefit or state pension statement
letter from your employer, college or training provider.

It’s also worth registering to voteOpens in a new window as some banks use this as part of their checks.

If you don’t have the right documents, you could consider a prepaid card account instead, where ID isn’t usually required.

Apply – you’ll usually need to pass a credit check

Depending on the account you’ve chosen, you can usually do this:

online
using an app
over the phone
in person.

Make sure there are no mistakes on the form as errors can lead to delays or failed applications.

The bank will usually run a credit check to see your credit history, including whether you’ve had problems paying money back. It’s a good idea to check your credit file’s in good shape before applying, see how to improve your credit score.

You will then be told if you’ve been accepted or declined. If you’re turned down for a standard account you might be offered a basic bank account instead – these don’t charge fees or offer overdrafts.

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How to switch or close a bank account

You can choose to close an account or change banks at any time. Switching is usually very easy, with all your payments automatically moved over for you. Here’s all you need to know.

Using the Current Account Switch Service (CASS)

When opening a new account, you’ll usually be asked if you want to switch from an existing account – or you can do it at a later date. Some banks will even offer a freebie if you do this.

To request a switch, you’ll need to:

provide your account and debit card numbers
choose a date for it to complete – it takes seven working days

CASS will then take care of the rest, including:

transferring Direct Debits and standing orders
moving your balance
redirecting incoming payments, such as benefits or salaries
closing your old account.

If anything goes wrong, you’ll be refunded any interest and charges on your old and new accounts. See the Current Account switch guaranteeOpens in a new window

Switching with an overdraft

As part of the switch request, you’ll usually be shown if the new bank will offer you an overdraft. If this covers what you owe, the funds will be sent to your old bank and you’ll owe the overdraft balance on the new account instead.

If it’s a lower amount, or you can’t get one, you’ll need to arrange to pay off the remainder separately before you can switch or close your old account.

For help clearing an overdraft, see MoneySavingExpert’s guide to cutting overdraft costsOpens in a new window

If you just want to close, contact your bank

Closing an account is usually straightforward, you just need to ask the bank. You can usually request this:

online
by phone or live chat
in person.

If you’re using your overdraft, you’ll have to pay it back before you can close your account. You’ll lose access to statements, so make sure you’ve got copies if you need them.

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