Switching banks in Spain without missing a payment

Key rules

• Cost: The official bank switching service between Spanish banks is free for you.
• Who it covers: It covers personal euro accounts in Spain, not business accounts.
• Old account fees: Ordinary fees on the old account still apply until it closes.
• Keep it open: Keep the old account open until your payroll and bills arrive in the new one.

What the switching service does for you

Spain has an official switching service that lets your new bank move your recurring payments from your old account. The new bank does the work. The service is free for you, so no rent or bill should be missed because of the move.

It covers personal payment accounts in euros held in Spain. Joint accounts are included if all holders authorise it. Business accounts and accounts of companies are not covered. Accounts abroad or in other currencies are not covered either.

What moves and what does not

The service moves standing orders, direct debits and regular incoming transfers, such as your salary.

It does not move cards, loans, mortgages, overdrafts, credit lines, investments, deposits or insurance. If a mortgage or loan has conditions tied to a direct debit, such as a payroll or bill requirement, talk to that bank separately about the terms.

How long it takes

The deadlines count in business days:

• The new bank asks the old bank for your information within 2 business days of your authorisation.
• The old bank replies within 5 business days of the request.
• The new bank then sets up your standing orders and transfers, and tells your payers and payees, within 5 business days of receiving that information.
• The switching date is the one you choose. It must be at least 6 business days after the old bank receives the request.

Expect the whole process to take around 10 working days. The steps are in the process below.

Payroll and incoming payments

The banks tell your payers your new account details, but also tell your employer yourself. That way your next payslip does not go to the old account. The new bank looks back over the previous 13 months to find your regular payments, so recurring items from that period are picked up.

Payers who are not told in time can still pay into the old account. Keep it open for a while after the switch, until your salary and bills are arriving in the new one.

Costs and what happens if something goes wrong

The new bank cannot charge you for the switch. The old bank cannot charge a penalty for the switch or for closing the account because of it. It can still charge its ordinary account fees until closure, so read your old contract.

If a bank misses a deadline or makes a mistake, it is liable for the direct losses you suffer, such as fees, interest and penalties. Start with a written complaint to the bank's customer service department (SAC). If it is not resolved after one month, or the bank rejects it, you can take it to the Banco de España's claims department. The courts are also open to you.

Before you start

Settle anything unpaid on the old account first. Unpaid debts, an overdraft or seizures can stop the old account from closing.

Switching bank accounts, step by step

• Settle anything unpaid on the old account, such as debts, an overdraft, pending payments or seizures on the account: before you start

• Ask the new bank for its switching form. It is free for you: before you start

• Sign the written authorisation at the new bank. Name yourself, both IBANs, the direct debits, standing orders and incoming transfers to move, whether to move the balance and close the old account, and the start date. Every joint holder must sign too: on day 1, when you give the authorisation

• Choose a switching date at least 6 business days after the old bank receives the request: when you sign the authorisation

• The old bank sends the lists of standing orders, direct debits and recurring transfers: within 5 business days of receiving the request

• The old bank stops accepting incoming payments and direct debits, moves the balance to the new account and closes the old one if you asked: on the switching date you chose

• If the old account stays open, clear the outstanding obligations, such as debts, an overdraft, pending payments, seizures or a co-holder who has not agreed, then ask the bank to close it: if the old bank does not close the account on the switching date

Checklist

• Check your old account contract for ordinary fees due until closure, since only the switch itself is free.

• Check that your standing orders and direct debits are set up at the new bank within 5 business days of it receiving the information.

• Keep the old account open for a while until your payroll and bills arrive in the new account.

• Complain to the bank's customer service department if a deadline is missed, and claim any fees or penalties it caused.

What to watch out for

• Fees on the old account until closure: The switch is free, but the old bank can still charge normal account fees until the account closes. It cannot charge a penalty for the switch. Read the old account contract and ask about any fees due before you pick a closing date.

• Missed deadlines can cost you money: If the bank misses a deadline or makes an error, you may get charged fees, interest or penalties on a missed payment. Claim these losses from the bank. Start with its customer service department, then the Banco de España claims department if unresolved after 1 month or rejected.

Check ordinary fees in your old account contract and confirm the complaint route with the Banco de España.

Frequently asked questions

Does the switching service move my business account?

No, the switching service only covers personal accounts held by consumers, not business accounts or accounts of companies. It also covers only euro accounts inside Spain, and a joint account needs all holders to authorise the switch.

Which products does the switching service not move?

The switching service does not move cards, loans, mortgages, overdrafts, investments or insurance.

Does the switching service update my employer with my new account?

Yes, the old bank or the new bank, as agreed, tells payers such as your employer about your new account. You can also tell your employer yourself.

What can I do if the bank misses the switching deadlines?

You can claim the direct losses from the bank, such as fees, interest and penalties caused by the delay.