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Switching bank account used to be a big hassle – so much so that people used to joke that you were more likely to get divorced than to change bank.

But under the terms of the Banking Code, there are now strict time limits within which information must be exchanged by banks and the new account is up and running, making the whole process a great deal easier.

What your former bank is required to do

Direct debit and standing order information must be sent to your new bank within three working days of receiving such a request from your new bank.

Once the new bank has received the direct debit and standing order details from your former bank, it will provide these to you so that you can check that they are accurate and ensure that only active ones are transferred.

If you fail to respond within a reasonable period, the new bank is entitled to assume that you want all such information to be transferred to your new account.

All account transfer notifications between banks, customers and direct debit originators will be made by the quickest method, which could be first class post, telephone, or electronically.

Your new bank must give your old bank five working days’ notice for it to transfer the credit balance on your old account to your new account.  If your former bank fails to do this within five days, it must inform you and your new bank why it could not do so. (It could be because you are overdrawn or there are other outstanding issues to be resolved).

No charge should be made by your former bank for any transfer of information or for closing your account.

What your new bank is required to do

Your new bank must inform you of the following:

• how the process for transferring your account will work and who is responsible for each step in the process;
• what information your former bank will pass to it;
• what features you will be offered with the new account so that you can compare your new account with your old account;
• how long the transfer is likely to take.

Your new bank must explain how the transfer process will work and who is responsible for each step in the process: whether it is the old bank, the new bank, yourself or the direct debit originator.

It is important if you require your account to be transferred within a certain period, that you agree a timescale that is acceptable to you.

Your new bank is required to give you ‘what you need to operate the account’ within 10 working days of approving your application.

The 10 working days are counted from the date your application is approved, namely once any necessary identification and address validation checks have been completed and, where appropriate, any necessary security has been put in place, or any necessary credit has been received.

'What you need to operate the account’ means the ability to pay into the account (including, where appropriate, a paying in book) and to make withdrawals from the account (for instance, an ATM card with PIN and, where appropriate, a cheque book).

Your new bank is required to cancel any bank charges incurred as a result of any mistake or unnecessary delay caused by it during the transfer process.