Banks say switching your account is as easy as one, two, three

An updated Code of Banking Practice spells out what you and banks must do to make changing accounts from one bank to another as painless as possible, writes Angelique Ardé.

So you want to ditch your bank and switch to another, but you’re daunted by the prospect of switching and all that it entails?

The Banking Association of South Africa (Basa) has released an updated Code of Banking Practice, which covers switching a transaction account to another bank. It spells out your role and that of your old and new banks.

Basa is an industry body that represents all registered banks in South Africa. Its new code commits members to “making it as seamless and easy as possible for all personal transaction account customers to switch banks”.

The code relates only to transactional accounts, not deposits and loans, which are individual contracts. You may terminate deposits and loans according to the contractual terms, it says.

The code explains that since banks compete to attract new transaction account customers, you need to compare their products and services, fees and charges.

“A number of independent comparison calculators are available to assist you in this. We (your bank) will also assist you to calculate the costs for your specific transaction pattern via our website, call centre or branch services.”

Basa advises that you take the following into consideration before you start the process of switching:

The rates and fees of your current bank versus another bank;

Whether the location of branches and ATMS meets your needs; and

The additional benefits on offer from both banks.

Depending on how you bank, the location of branches and ATMS may be of lesser or greater significance to you.

Once you’ve decided on a new bank, how do you go about switching? Basa says it can be done in three easy steps: open a new account, switch transactions, and close your old account. this with the originators.”

The code says that while the banks are committed to ensuring the process is smooth, it requires the co-operation of all parties involved – especially debit order originators and salary, income and benefit payers. cards or accounts that may be affected by the switch. could be asked to pay a fee, either by your account provider or by whoever the payment was going to. The mistake may be someone else’s fault if, for example, the paperwork you provided was not processed (by the account provider) on time. If this is the case, complain. You may be able to get the fee waived,” he says.

Once you’ve switched, Basa advises that you keep an eye on your debit orders and other transactions to avoid unpaid debit orders and to ensure all transaction originators are using your new banking details.

And don’t forget those once-ayear debit or stop orders in your switching instructions to your new bank.

To download the updated Code of Banking Practice, go to www.banking.org.za. You’ll find it on the home page under “What’s new”.