Reference
Bank switching terms — the dictionary
Published 2 October 2026 · Reference guide
Every term you'll actually run into while switching banks or chasing a switching bonus, explained in plain English. Bookmark this one — we add to it as new terms come up.
A
AER (Annual Equivalent Rate)
The standardised way UK banks quote interest rates, showing what you'd earn over a full year including compounding — lets you compare savings rates on a like-for-like basis.
B
Bacs
The payment system that processes UK Direct Debits and Bacs Direct Credits (like most salary payments) — typically takes 3 working days to clear, though a brand-new Direct Debit mandate takes longer to activate.
Banking group
A parent company that owns multiple "different" bank brands — for example NatWest Group owns NatWest, Royal Bank of Scotland, and Ulster Bank. See our full visual guide.
C
CASS (Current Account Switch Service)
The UK-wide service that moves your current account — including all Direct Debits, standing orders, and incoming payments — from your old bank to your new one automatically, usually within 7 working days.
CASS Guarantee
The protection that comes with a CASS switch — if anything goes wrong (a missed payment, a fee charged in error), you're refunded, and any resulting credit file damage is corrected.
D
Direct Debit
A payment instruction where the recipient (not you) initiates each payment from your account on an agreed schedule, usually for a variable amount, protected by the Direct Debit Guarantee. See our full "what counts" guide for exactly what qualifies.
Direct Debit Guarantee
The scheme that protects every UK Direct Debit — if an incorrect amount is ever taken, you're entitled to an immediate, full refund from your bank.
E
Exclusion period
The length of time you have to wait after previously holding an account with, or receiving an incentive from, a specific bank before you're eligible for a new switching offer from them again — varies by bank, often tied to a specific cut-off date rather than a fixed duration.
F
FSCS (Financial Services Compensation Scheme)
Protects your money up to £120,000 (per person, per banking licence) if a UK-regulated bank fails — covers high-street banks and challenger banks alike.
Full switch
A complete CASS switch of your entire current account, as opposed to simply opening a new account alongside your old one — this is what most switching bonuses require.
P
Pay-in requirement
The minimum amount a switching offer requires you to deposit into your new account within a set window (commonly 30–60 days) — can usually be met with multiple smaller payments, not necessarily one lump sum. Always check the specific bank's own wording.
Partial switch
Moving only some Direct Debits or payments to a new account while keeping the old one active — almost never qualifies for a switching bonus, which typically requires a full CASS switch.
Q
Qualifying criteria
The specific conditions a switching offer requires — typically a full CASS switch, a minimum pay-in, a set number of Direct Debits, and sometimes a card-spend or app-login condition, all within a stated time window.
S
Standing order
A fixed-amount, self-initiated recurring payment you set up — different from a Direct Debit, which the recipient initiates and can vary in amount. Most switching offers specifically require Direct Debits, not standing orders.
Switch date
The agreed day your old account closes and your new one takes over fully — typically 7 working days after you submit your switch request.
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Terms and their exact application can vary slightly by bank — always check the specific offer's own terms and conditions for the precise definition used.