Switching savings accounts sounds straightforward — but many savers put it off, worried about losing interest during the transfer, getting the timing wrong, or the process being more complicated than it’s worth. In reality, switching is usually simple, takes a few days at most, and can make a meaningful difference to what your money earns over the course of a year.
Why switching matters
Savings rates are variable — providers can change them at any time, and many do, especially when the Bank of England adjusts its base rate. A rate that was competitive twelve months ago may now be significantly below the best available. Loyal savers are often quietly paying the price: banks rely on inertia, and the easiest customers to keep are those who don’t check what else is out there.
Even a 0.5% difference in AER on a £10,000 balance is £50 a year. On larger balances or over multiple years, the difference compounds. Switching is one of the simplest ways to give your savings a meaningful boost without taking any additional risk.
Do I lose interest when I switch?
For easy access accounts, no — you earn interest up to the day you withdraw and begin earning interest in your new account from the day your money arrives. There’s typically a gap of one to three working days during the transfer where your money is in transit, but most providers continue to pay interest during this period, and the new account starts earning from the date of receipt.
For fixed rate accounts, switching before the end of your term is a different matter. Most providers don’t allow early withdrawals, and those that do charge a penalty — typically several months of interest. In this case, the best strategy is to switch when your fixed term ends, not before. Set a reminder for your maturity date and act quickly — providers often automatically move your money into a low-rate holding account when a term expires.
Step-by-step: how to switch an easy access savings account
- Compare current rates. Check what the best easy access rates are right now — our guide to the best easy access savings accounts UK is a good starting point, alongside Moneyfacts or MoneySavingExpert for up-to-date rate tables.
- Check your existing account’s terms. Some easy access accounts have withdrawal limits — for example, a maximum number of fee-free withdrawals per year. Closing or withdrawing from these accounts at the wrong time could trigger a fee or rate reduction. Read the small print before acting.
- Open the new account first. Apply for and open your new savings account before closing or withdrawing from your old one. Most online applications take less than ten minutes.
- Transfer your money. Once your new account is open, transfer your funds from your old account. This is usually done via bank transfer from the linked current account — you withdraw from your old savings account to your current account, then transfer in to your new savings account.
- Close your old account if you no longer need it. Some providers close accounts automatically once the balance reaches zero; others require you to contact them. Check whether there are any ongoing fees if you leave the account open with a zero balance.
How to switch a fixed rate savings account at maturity
Fixed rate accounts have a set end date — the maturity date. This is your window to act without penalty. Here’s how to handle it:
- Set a reminder 30 days before maturity. This gives you time to compare rates and open a new account before your term ends, so you can move quickly when the money becomes available.
- Check what your provider does at maturity. Most will send a letter or email explaining your options — rolling onto a new fixed term, moving to an easy access account, or withdrawing. Don’t let your provider automatically roll you into a new fixed term without comparing rates first.
- Compare and open a new account before maturity. Identify the best rate across providers and terms. Use our savings calculator to compare what different rates would earn on your balance.
- Instruct the transfer on or after maturity. Once your fixed term ends and your money is accessible, transfer it to your new account promptly. Every day it sits in a low-rate holding account is interest lost.
Watch out for introductory bonus rates
Some easy access accounts offer a higher introductory rate for the first 12 months, which then drops. If you opened an account with a bonus rate and that period has now ended, you may be earning significantly less than when you started. Check your current rate against what you signed up for — if it’s dropped, it’s time to compare and switch.
FSCS protection when switching
During the transfer process, your money remains FSCS-protected. The brief period when funds are in transit via bank transfer is covered under normal banking protections. If you’re moving a large sum — close to or over £85,000 — consider whether your new provider shares a banking licence with any existing accounts you hold, and whether you need to split your savings across more than one institution to maintain full protection.
How often should I review my savings rate?
At least once a year — and more frequently if the Bank of England has recently changed its base rate, as providers typically adjust their rates in response. A quick check every six months takes minutes and ensures you’re not quietly losing out to a provider paying significantly more.
Summary
Switching savings accounts is simpler than most people expect and rarely results in lost interest if you follow the right steps. For easy access accounts, open the new account first, transfer your balance, and close the old one. For fixed rate accounts, act at maturity — not before. Review your rate at least annually, watch for bonus rates expiring, and use our savings calculator to make sure your money is always earning what it should.