Can i change banks with an overdraft

But you can still switch to Monzo and pay off your overdraft with your old bank by following the steps below. If you switch your account through the Current Account Switch Service, your old bank might leave your old account open, and get in touch with you to agree on a way to pay off your overdraft.

Or they might close your account and ask you to repay the money another way. Your bank should contact you to agree on a way to pay your overdraft back, or you can get in touch before you switch to find out how it works. Find everything you need to know about switching bank account on the Current Account Switch Service website.

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Travel money Travel prepaid cards No foreign transaction fee credit cards Travel insurance Car hire excess insurance European breakdown cover Guides. Can I switch bank accounts if I'm in my overdraft? Share this guide. Can you really switch current accounts? Find out how to switch your bank account here What should you look for in a new account?

The step-by-step process below details exactly what happens. This short video explains how to find a current account that's best suited to your needs, or you can skip to our advice on choosing the best current account below:.

When you apply to the new provider, it will undertake its normal account-opening procedures. Banks and building societies have to comply with strict money-laundering rules so, when you open an account, you'll be asked to provide two separate documents for proof of identity and proof of address. You will then need to complete a 'Current Account Switch Agreement' form and a 'Current Account Closure Instruction' form, provided by your new bank or building society,.

Your new bank or building society will confirm whether it is using the current account switching service which is backed by the Current Account Switch Guarantee. This guarantee means that they will correct any problems with payments as a result of the switching process. You will be able to agree a convenient switch date for you with the new bank or building society.

It can't be a Saturday, Sunday or bank holiday, and must be at least seven working days after your account has been opened. Once this date has been agreed, your new bank will provide confirmation that the switch has begun and will be completed on the agreed switch date.

You will continue using your old current account up until the agreed switching date, though don't set up new payments such as Direct Debits and standing orders during the seven working days leading up to your agreed switch date. On the switch date, your new bank or building society will be responsible for moving your incoming and outgoing payments, and transferring any money to your new account, before closing the old account and sending confirmation that the process is complete.

The Current Account Switch Guarantee outlines how the switching service works and what rights you have if anything goes wrong with the switch. If you run into any problems during or after the switching process - for example, if your bank fails to comply with the Switch Guarantee - you should complain in the first instance directly to your new bank. If you're not happy with the answer you get or it doesn't reply to you within eight weeks, you can take your complaint to the Financial Ombudsman Service FOS.

Under the new switching service, it shouldn't matter what working day you choose to make the switch over to the new account. However, if all your direct debits and standing orders go out around the same time every month, it makes sense to avoid switching on this day to minimise the potential for any problems.

Yes, having an overdraft isn't a barrier to switching but you'll need to pay off any debt with your old bank. Whether or not the new account provider offers you an overdraft facility and whether or not it matches your current overdraft limit will depend on your circumstances.

If you've got an authorised overdraft and have a record of managing it well, most banks will consider taking the existing overdraft on. If the new provider won't let you move your existing overdraft across, you can still switch but you will need to discuss a way of paying off your overdraft with your old bank.

Some may agree to keep the old account open to help you pay it off gradually but others may insist you clear the debt before you switch. Yes, you can switch a joint account as long as both parties agree to do so. You can only switch to another joint account held by the same people though - It's not possible to use the CASS to switch from a joint account to a sole account. Applying for multiple current accounts can affect your credit rating in the short term - because banks must run credit checks for the overdraft facility - but having one or two credit application searches will have minimal impact.

Ideally, you should spread credit applications out, so if you're applying for a mortgage or car finance it may be best to wait until you've secured this before switching bank accounts.