Switching a business current account with CASS
How eligible UK small businesses can use the Current Account Switch Service, what transfers automatically and what still needs manual checking.
Eligible small businesses can use the Current Account Switch Service between participating providers. Current CASS eligibility includes businesses with annual turnover not exceeding £6.5 million and fewer than 50 employees, as well as qualifying small trusts. The switch takes seven working days once the new account is open and a switch date is agreed. The old account closes under a full CASS switch, payments are redirected, but items such as old statements and some third-party services still need manual attention.
Check eligibility before planning around CASS
The Current Account Switch Service says a business can use the service if annual turnover does not exceed £6.5 million and it employs fewer than 50 people; qualifying small trusts can also use it. Both the old and new providers need to participate in the service. Larger or ineligible businesses can still change bank, but the move will not follow the same automated CASS process.
Account opening and switching are separate. The new bank completes its onboarding and know-your-customer checks first, then the business chooses a switch date.
A full switch closes the old current account
Under a full CASS switch, the balance and eligible payment arrangements move to the new account and the old current account closes. Incoming payments sent to the old details are redirected, and originators can receive updated account information so they can amend their records.
If the business wants to keep the old account open as a backup, that is not a full CASS switch and the Guarantee does not apply in the same way. Decide whether closure is acceptable before signing the switch instruction.
Download records and check integrations before the switch
CASS does not transfer your historical transaction statements into the new bank. Download the records the business needs before access to the old online banking disappears. Also list accounting feeds, payment gateways, payroll software, expense tools and any third-party authorisations tied to the old account.
Our guide to business bank account fees can help compare the new account after introductory pricing ends; do not switch solely for a short promotion.
Overdrafts need separate agreement
A business can potentially switch while overdrawn, but the new bank must agree whatever overdraft or repayment arrangement is required. CASS does not force the new provider to reproduce the old facility. Resolve this before the switch date so the business is not left with an unexpected funding gap.
Read our guide to business overdrafts for the difference between a short-term facility and recurring structural borrowing.
Avoid setting up last-minute payments on the old account
CASS explains that new payment arrangements set up at the old bank within the seven working days leading up to the switch are not automatically transferred. During the final week, direct new standing instructions and payment setup to the new account where appropriate.
Tell payroll teams, key customers and large suppliers when the new details become active. Automatic redirection is useful, but the long-term goal should still be for counterparties to update their records.
Use the Guarantee if a switch error causes charges
The CASS Guarantee covers charges or interest incurred on the old or new account because of a failure in the switching process. Keep evidence of the affected payment and raise the issue with the new bank. Do not assume every post-switch problem is a CASS error; a payment created after the transfer window or a service outside the scheme may need a different fix.
After the switch, reconcile the first month carefully: check incoming customer payments, Direct Debits, standing orders, card settlements and payroll-related movements against the expected list.
Frequently asked questions
How long does a CASS business switch take?
Once the new account is open and the date is agreed, the Current Account Switch Service uses a seven-working-day process.
Can a business use CASS if it is overdrawn?
Yes, potentially, but replacement overdraft facilities must be agreed separately with the new bank.
Will old business bank statements move to the new bank?
No. Download or request the historical records you need before the old account closes.
Plan the switch around payroll, tax and supplier dates
A business-current-account switch deserves more planning than a simple personal-account move because more people and payment systems may depend on the details. Review payroll, supplier Direct Debits, tax payments, card-acquiring settlements and client receipts before choosing the switch date. Tell important customers or suppliers about new account details where appropriate even if redirection is available. Keep the final statement from the old account so the finance records remain complete after the old account closes.
Sources and verification
Oliver Grant — Markets & Regulation Writer
I would treat a business bank switch as an operational migration, even though CASS automates the core current-account movement. Before the date is booked, I would make a list of everything that depends on the old account: customer receipts, Direct Debits, payroll, merchant settlements, accounting feeds, payment approvals, cards and any overdraft. Then I would mark which items CASS moves and which need manual work. I would download historical statements early because they do not migrate with the account. I would also compare the new bank on post-promotion pricing rather than the switching incentive alone. The most important financing question is the overdraft: a switch does not guarantee replacement borrowing, so I would settle that before the old account is scheduled to close. During the seven-working-day window I would avoid creating new arrangements on the old account unless the bank confirms how they will be handled. Finally, I would reconcile the first month after the move more closely than normal. CASS is designed to make switching easier and provides a Guarantee, but a business still has responsibility for its connected systems and counterparties. A good switch is one where customers and suppliers barely notice that anything changed.
MyBankAnswers uses official provider and UK regulatory sources wherever practical. Information is general and does not constitute financial advice.