How to switch bank accounts

Home › Banking > How to switch bank accounts

Whether you’re looking for a better deal on banking fees or just a service that better suits your needs, switching bank accounts could be the answer. It can seem like a hassle, but the process is often easier than you might think. In this guide, we’ll cover everything you need to know about changing bank accounts, from choosing a new provider to moving your direct debits.

Current accounts providers in Ireland can vary widely in the services and benefits they offer, not to mention the fees they charge. You may have stayed with the same bank since you first opened an account, mainly because it’s easy and familiar. But loyalty doesn’t always pay off, and sticking with the same account for life might mean missing out on better deals elsewhere.

Sometimes, switching banks becomes necessary if your current bank closes branches. But it can also be an opportunity to seek better services and conditions elsewhere.

Reasons why someone might want to switch their bank account include:

• Lower or no fees on everyday transactions and banking, including fees to maintain the account
• Reduced overdraft charges
• Cash bonuses or perks for new customers
• Better customer service — some banks are known for their excellent customer service
• Changing bank account needs, such as switching from a student to a standard account
• Superior online and mobile banking features
• More local branches if access to in-person banking is important to you

Choosing the right bank account can be challenging with so many providers available, including many that you won’t find on the high street. To make the process easier, you could simply start by identifying your main reason for switching banks. This can help narrow down your options.

Think about how you use your existing account. Will the way you use it change with a new account? Is it mainly for depositing your wages, setting up direct debits, or making frequent withdrawals? Do you often use cash? Charges for different services vary between accounts, so it can be helpful to consider your banking habits.

Here are some factors to consider when switching bank accounts in Ireland:

• What’s your banking style? If you prefer using cash, you might check whether the bank offers free ATM withdrawals with nearby ATMs. If you’re more into mobile or online banking, check if the bank has a user-friendly app and supports digital wallets such as Google or Apple Pay.
• Is there a branch nearby? If you prefer in-person banking, you could look for a bank with branches near you.
• Which features matter most to you? Most accounts offer basic services like payments, direct debits, and cash withdrawals. Some also offer extras, for example cashback, interest-free overdrafts, or travel insurance.
• Will you need an overdraft? If you think you might need an overdraft, you could check if the account offers interest-free overdraft limits or low fees. Keep in mind that overdrafts aren’t generally suitable for frequent use, as the interest charges can be high.
• Does the account offer deposit protection? In Ireland, accounts with banks, building societies, or credit unions authorised by the Central Bank are protected under the Deposit Guarantee Scheme. If the institution were to fail, you can get back up to €100,000 per person. Most accounts have this protection, but it can be worth double-checking.
• What are the current account fees? One of the main considerations will likely be the monthly fees and individual transaction charges. Many banks in Ireland charge a monthly maintenance fee, which ranges from about €1.50 a month at AIB to €8 a month at PTSB, whereas online banks tend to have no fees. However, it’s also important to look at other fees to get an accurate overall picture. Will you be charged for withdrawing cash from ATMs? What about chip and pin transactions? The fees can quickly add up, so make sure to check the terms and conditions.

If you want to avoid some of the hefty fees on current accounts in Ireland, you might consider looking into a savings account as well. See our page on current accounts vs. savings accounts to learn more.

Before getting to the switching process itself, it can be helpful to take some time to prepare for changing bank accounts.

• Gather your documentation – You’ll need your ID, e.g. a passport, and proof of address, such as a gas or electricity bill. Make sure your ID is in date and valid. Some banks may also ask for recent bank statements, especially if you’re considering applying for credit later on.
• Check existing payments and income – Go through your recent bank statements and make a list of any recurring payments, such as bills or subscriptions, noting when each payment is due. This should include any SEPA direct debits, as these automatic payments may need to be redirected to your new account. Also, take note of any deposits into your account so that they’re redirected to your new account. This includes your monthly salary or benefits.
• Note down your old account details – Make sure you have details of your current account to hand, including the name of your old bank, account number, sort code, and any debit card details associated with it.

You don’t always have to close your old account when changing bank accounts. If you prefer to keep it, that’s perfectly fine. There’s no rule against having more than one current account in Ireland. You would just have to let your new bank know if you plan to keep your old one.

The only exception is if you’re looking at a basic bank account. This type of account offers fewer services and is aimed at those who may struggle to get approved for a regular account. You cannot hold more than one basic bank account at the same time.

The main downside with multiple current accounts in Ireland is that the fees can build up. You’d have to take a close look at the terms and conditions of each account when deciding whether it’s worth keeping your old account.

Switching bank accounts might seem like a hassle, what with all the direct debits and standing orders to update and income providers to inform. Many people worry about delays and being without access to their money. However, switching banks in Ireland is often easier than you might think.

The Central Bank has a Switching Code that is designed to make sure the process runs smoothly. Essentially, the banks take care of transferring everything. Your new bank is required to have your account ready within 10 working days of the agreed switch date.

Here are some of the main steps in the current account switching process:

1. Gather the account information and request a switch pack – Once you’ve chosen a new bank, contact them to request a switching pack. You can do this in-branch or online. This will include an account transfer form, plus details about current accounts, fees, charges, and terms.
2. Complete the account transfer form and any other forms that notify your old bank of your intention to switch banks.
3. Choose a current account switch date – Choose a date with your new bank to start the switch. You might try to pick a date with minimal transactions, avoiding times when big payments like rent or mortgage or bills are due to go out.
4. Before your switch date, stop using your old bank cards or cheque books. Return any unused cheques to your old bank, as you may be eligible for a stamp duty refund. Clear any overdraft balance.
5. Your new bank will send the transfer forms to your old bank. Your old bank will notify companies of your new bank details for direct debits and provide a list of your standing orders to your new bank. Your new bank will set up these payments, but you might need to double-check everything. Mistakes can happen, and you don’t want to end up paying late.
6. Recurring payments – keep in mind that these aren’t considered direct debits and are therefore not taken care of in the Switching Code. If you have any subscriptions such as a streaming service, you’ll have to inform the providers yourself of your new account details.
7. The balance in your old account will be transferred to your new one.
8. Once the current account switch is complete, your old bank will send you a closing statement. If you want to close the old account, you’ll need to contact them directly.
9. As a final step, make sure you notify your employer, the Department of Social Protection, or any other payment providers of your new bank details (BIC and IBAN) to ensure payments are sent to the right account. This is something you’ll need to do yourself.
10. Your account should be up and running within 10 days after your chosen switch date, and your new debit card should be sent out shortly after. If you’ve decided to close your old account, you can safely destroy your old debit card. You can now set up online or mobile banking.

Yes, you can switch bank accounts on your own. You’ll need to provide ID and proof of address as before. Many banks let you open current accounts quickly and easily online, or you can visit a branch.

Instead of asking the banks to handle the current account switch, the main difference when doing it yourself is that you’ll have to manually update your payment details. This means contacting companies or individuals directly to update direct debits, standing orders, and any recurring payments.

Direct debits are usually fairly easy to update online. For standing orders, you’ll need to set them up again with your new bank, which can usually be done online or with help from the bank. As before, you’ll need to notify your employer with your new bank details (or the Department of Social Protection for social welfare payments).

Once your payments are moved to the new account, you can transfer your remaining balance and close your old account. Timing is important, as you won’t have the advantage of the guaranteed 10-day setup that comes with the Switching Code process.

As you switch to a new bank, it can be an ideal time to think about your savings, too. Current accounts typically offer little to no interest, but savings accounts can provide a much better return. By choosing an account with a competitive interest rate, you can let your money grow over time.

If you’re looking for an easy way to open savings accounts with competitive rates, consider signing up with Raisin Bank. It’s free to register and apply for savings accounts, and we don’t charge any fees for helping you find the best home for your savings.