Can you switch current accounts while overdrawn?
Being overdrawn does not automatically stop a current-account switch, but the new bank must separately agree any overdraft or repayment arrangement you need.
Yes, you can use CASS while overdrawn, but an overdraft is borrowing and does not automatically transfer. Agree any new overdraft or repayment facility with the new bank before the switch. If no arrangement is agreed, you must make separate plans to repay the old overdraft.
The account can switch; the borrowing needs its own agreement
The Current Account Switch Service confirms that an overdrawn customer can switch an eligible current account. The important condition is that the new bank decides separately whether it will provide an overdraft or another facility to help repay the old one. The switch service moves payment arrangements; it does not force a lender to take over another bank’s credit risk.
Before choosing the switch date, tell the new provider the current overdraft balance and ask what facility has actually been approved. An “up to” overdraft in marketing material is not the same as a personal credit decision. If the approved limit is lower than the amount owed, make a plan for the difference before the old account closes.
Compare the cost, not just the limit
A larger overdraft is not automatically a better deal. Compare the interest rate, any interest-free amount, how persistent overdraft use is handled and what support is available if income falls. Overdrafts are intended as short-term borrowing and can be expensive when used continuously.
If the old overdraft has become permanent debt, switching may improve the rate but does not solve the underlying cash-flow gap. Build a repayment plan alongside the account move. MoneyHelper notes that regular overdraft use can cost more than customers expect, so treat the borrowing as a debt balance rather than part of your normal monthly income.
How the CASS timetable works
Once the new account is open and its security checks are complete, you choose a switch date at least seven working days away. CASS moves regular incoming and outgoing payments and closes the old current account on the switch date. Payments sent accidentally to the old account are redirected.
Do not create new Direct Debits or standing orders on the old account during the final seven-working-day period because new arrangements may not transfer. See what happens to Direct Debits during a switch for the detailed payment sequence.
What if the new bank will not match your overdraft?
You still have options, but they require explicit agreement. The new bank may offer a smaller facility or another way to repay the old balance, subject to its lending criteria. Otherwise, you must arrange repayment with the old bank before or alongside the switch. Do not assume the old bank will write off the debt when the payment account closes.
If the overdraft is unaffordable, contact the old bank before switching and explain the difficulty. A repayment arrangement may be more appropriate than moving to another expensive overdraft. If necessary, seek free debt advice before taking additional credit.
Protect salary and essential bills during the move
An overdrawn household often has little spare cash to absorb a payment error. Keep track of the first salary into the new account and the first cycle of rent, mortgage, utilities and other Direct Debits. CASS provides a guarantee for interest and charges caused by a switching failure, but having a small contingency can still reduce stress.
If your employer needs a manual update, see changing the bank account used for salary. Do not time the switch solely around an incentive deadline if it creates a cash-flow risk around payday.
Frequently asked questions
Will my old overdraft automatically move to the new bank?
No. The new bank must separately approve any overdraft or repayment facility you need.
Can CASS switch an account that is overdrawn?
Yes, subject to agreeing how the existing borrowing will be handled.
What if I cannot repay the old overdraft before switching?
Speak to both banks before the switch. The new bank may offer a facility, or you may need a separate repayment arrangement with the old provider.
Choose the switch date around cash flow
An overdrawn customer has less room for timing errors, so choose the switch date around salary and major bills rather than around a promotional deadline. Ask the new bank when the approved overdraft becomes usable and make sure the first salary will arrive before large Direct Debits are due. If the old bank is taking interest daily, note the balance close to the switch date so you can reconcile what was transferred or repaid.
Keep the old bank’s final statement and the new bank’s opening statement. If the balance differs from what you expected, those two records make it much easier to identify accrued interest, pending card transactions or charges rather than assuming the switch itself lost money.
Calculate the post-switch debt on paper
Write down the old overdraft balance, the new approved limit, the old and new interest rates and any amount that must be repaid separately. Then model the balance after the first salary and essential bills. This turns a vague “better overdraft” into a concrete borrowing comparison. If the new facility covers only part of the debt, agree what happens to the remainder before the switch date. If neither bank can offer an affordable structure, pause the switch and seek debt support rather than taking another expensive facility simply to complete the account move.
Related UK banking guides
For related guidance, see What happens to Direct Debits when you switch current accounts?, How do I switch my current account to Lloyds Bank? and Can you turn a sole bank account into a joint account?.
Sources and verification
- Current Account Switch Service — common questions
- MoneyHelper — overdrafts explained
- MoneyHelper — open, switch and close a bank account
Emily Clarke — Senior Banking Writer
I would only switch an overdrawn account after the borrowing arrangement is written down clearly. The key number is not the advertised overdraft limit; it is the amount the new bank has actually approved for you and the interest you will pay. CASS makes the payment move reliable, but it does not transform or erase debt. If the new bank will not cover the existing balance, settle the gap or agree a repayment plan before the switch date. I would also use the move as a reason to review whether the overdraft is temporary or has become part of everyday income. A cheaper overdraft can be worthwhile, but persistent borrowing needs a repayment strategy as well as a new current account. I would keep the approval for the new overdraft and the final old-account balance together. Those two numbers show whether the switch actually improved the cost of borrowing or merely moved the same debt. I would also compare the old and new borrowing costs using the balance you actually carry, not the maximum overdraft limit. If the new account saves only a small amount but creates a tighter limit or a difficult repayment deadline, the switch may not improve your position. Ask for the approved facility in writing and keep the old account’s final statement so the debt transfer or repayment can be reconciled accurately.
MyBankAnswers uses official provider and UK regulatory sources wherever practical. Information is general and does not constitute financial advice.