Current Account Switch

Digital_Payback

When you switch a current account from one bank to another do I have to have a zero balance in the first, or are funds in the account transferred as well as direct debits?

singhini

Funds are transferred aswell as the direct debits (personally ive always switched with some money in the old account). 

Digital_Payback

Singhini, many thanks. 

I intend to do likewise and leave a few £ in the closing account. 

Then I’ll know, when added to the new account, that the switch is complete!
Appreciate the prompt response. Thank you. 

Altior

I received a very bizarre snail mail communication from Lloyds that I had to clear the funds from my current account before the switch. The letter landed on my door mat on the day before the switch! I'm pretty sure this is not in line with the standard CASS process. But I had £2K in the account, so withdrew it anyway. 

singhini

@Altior
Was that recently with Lloyds? 

The only time i had to clear funds in an account was back in 2021 when TESCO were closing some of their accounts and if there were any funds they would be lost (but that was closure of account and not a switch)

Altior

singhini said:

@Altior
Was that recently with Lloyds? 

The only time i had to clear funds in an account was back in 2021 when TESCO were closing some of their accounts and if there were any funds they would be lost (but that was closure of account and not a switch)

Yep a Club Lloyds Current Account. I have done multiple current account switches, first time I've been told I need to clear the balance. It was to avail the Barclays switching bonus, and Barclays have a fixed switching date, 7 days after the application. All pretty odd, I assume the funds would have been moved but it was much simpler to do it manually, rather than risking problems after the switch.

singhini

@Altior Thanks for the update, worth knowing something like that 

Altior

Here's the letter

Altior

I suppose they could mean if it has a debit balance from their perspective, ie it's overdrawn. Pretty ambiguous language if that's the case.

HillStreetBlues

Altior said:

I suppose they could mean if it has a debit balance from their perspective, ie it's overdrawn. Pretty ambiguous language if that's the case.

It must be ambiguous as I read it as if you are in debt with them, I wouldn't even have considered needing to manually transfer a credit balance.

Altior

I'm an accountant so to me a debit balance is asset positive. Perhaps as it's terminology I have used practically every working day. Yes that extra letter is all important, but if it read 'debt', that would have been be more logical! Even better if they had just written overdrawn.