24th February 2014
What is the Current Account Switch Service?
On 16 September 2013, the Current Account Switch Service (7-Day Switch) launched, ensuring the process of current account switching for UK consumers is completed seamlessly in seven working days. It is designed to make it easier and faster for consumers to switch their bank accounts.
The seven day switch rules mean the responsibility for switching outgoing and incoming payments lies with the new bank and not the customer. The service is underpinned by the Current Account Switch Guarantee.
Does FSCS protect the customers of firms offering the 7-Day Switch Service?
A large proportion of UK authorised banks and building societies offer the 7-Day Switch Service. This means FSCS will protect the vast majority of their customers with current accounts.
FSCS protects your money when your UK authorised bank, building society or credit union goes bust. This means if your bank, building society or credit union goes fails, FSCS will pay you your current or savings account money back within seven days in most cases. However, there is a limit to how much FSCS can compensate savers. FSCS can pay up to £85,000 per individual, so joint account holders could receive up to £170,000.
Consumers can find out if their accounts are protected by using the FSCS protection checker tool. If your bank operates a number of brands under one banking authorisation you will only be protected up to the £85,000 limit. The Checker Tool will also identify this and let you know if your money is at risk across these brands.
A small number of non-UK authorised firms operating in the UK are taking part in the 7-Day Switch Service. Customers of these firms should contact them directly for further details about how they are protected. European Union deposit guarantee schemes provide cover equivalent to FSCS - €100,000 or the host state currency equivalent.
More information about the Current Account Switch Service
Find out more about the 7-Day Switch Service, including frequently asked questions and a list of participating firms. Visit www.paymentscouncil.org.uk/switch_service/