There'll be a new bank account switching service in September

Five questions answered.

The Payments Council has announced a new bank account switching service that will start on the 16 September. We answer five questions on the new scheme. 

What does the new service do exactly?

It enables current account holders to switch banks within seven days instead of up to 30 days. 

As of Monday 16th September, 33 bank and building societies brands – accounting for virtually 100 per cent of the current account marketplace – will deliver the new switching service for consumers, small charities and small businesses.

How will it work exactly?

After the start date, when switching accounts the new provider will arrange for all direct debits and standing orders to be redirected to the new account. This system will stay in place for 13 months so no one off payments are missed.

Payments going in will also be redirected.

Why is the Payments Council launching this service?

It is being launched as a recommendation from the Independent Commission on Banking two years ago. The commission said that people only changed bank accounts once every 26 years on average.

As a result, the so-called "big four" High Street banks - Lloyds Banking Group, Barclays, Royal Bank of Scotland and HSBC - retain control over the market.

If it’s easier to switch, will banks be offering more incentives?

Yes! Two banks are already offering customers a cash incentive of up to £125 to switch their current accounts to them.

Will this new service provide a boost for smaller banks?

That’s one of the aims. Small banks taking place include the Reliance Bank, which is part of the Salvation Army – it has just one branch. Plus the Cumberland Building Society, which has 34 branches based across Cumbria and the north-west of England.

Payments Council has announced a new bank account switching service. Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

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New Digital Editor: Serena Kutchinsky

The New Statesman appoints Serena Kutchinsky as Digital Editor.

Serena Kutchinsky is to join the New Statesman as digital editor in September. She will lead the expansion of the New Statesman across a variety of digital platforms.

Serena has over a decade of experience working in digital media and is currently the digital editor of Newsweek Europe. Since she joined the title, traffic to the website has increased by almost 250 per cent. Previously, Serena was the digital editor of Prospect magazine and also the assistant digital editor of the Sunday Times - part of the team which launched the Sunday Times website and tablet editions.

Jason Cowley, New Statesman editor, said: “Serena joins us at a great time for the New Statesman, and, building on the excellent work of recent years, she has just the skills and experience we need to help lead the next stage of our expansion as a print-digital hybrid.”

Serena Kutchinsky said: “I am delighted to be joining the New Statesman team and to have the opportunity to drive forward its digital strategy. The website is already established as the home of free-thinking journalism online in the UK and I look forward to leading our expansion and growing the global readership of this historic title.

In June, the New Statesman website recorded record traffic figures when more than four million unique users read more than 27 million pages. The circulation of the weekly magazine is growing steadily and now stands at 33,400, the highest it has been since the early 1980s.