You can transfer money between your own accounts, but you cannot convert one account type into the other
A savings account and a current account are two separate products with different rules, fees, and purposes. Your bank will not turn a savings account into a current account by changing a label. What you can do is open a current account and move your money there, or transfer funds between the two accounts if you hold both.
The process depends on whether you want to move money once, move it regularly, or close the savings account entirely. Each path takes a different amount of time and involves different steps.
Key Takeaways
- You cannot convert a savings account into a current account; they are separate products with different terms and features.
- You can transfer money from savings to current in a single transaction, usually within one to three business days.
- Opening a new current account takes one to five business days depending on your bank and whether you do it online or in person.
- If you want to close the savings account after moving your money, you must do that as a separate step after the balance reaches zero.
- Some banks charge fees for closing accounts early or for maintaining both account types, so check your account terms before you start.
Moving money from savings to current in a single transfer
If you already have both a savings account and a current account at the same bank, you can move money between them immediately. Log into your online banking, select the transfer option, enter the amount, and confirm. The money typically arrives within the same day if you transfer before the bank's cutoff time (usually 3 p.m. on business days), or by the next business day if you transfer after hours.
If your accounts are at different banks, the transfer takes longer. Use your current account's online banking to set up a transfer to your savings account's bank details, or ask your bank for a bank transfer form to fill out in person. This route takes one to three business days because the banks must communicate through the clearing system. You will need your savings account number, sort code, and the account holder's name (your own).
Some banks also offer standing orders, which let you move a fixed amount on a set date each month. This is useful if you want to shift money regularly rather than in one lump sum. Set it up through your current account's online banking or by visiting a branch.
Opening a new current account if you do not have one
If you only have a savings account and need a current account, you must open one as a new product. Most banks let you do this online in 10 to 15 minutes. You will need proof of identity (passport or driving licence), proof of address (utility bill or council tax letter dated within the last three months), and your National Insurance number. Some banks ask for additional information depending on their fraud checks.
Online applications are usually approved within one to five business days. Your bank will send you a debit card and PIN by post, which takes a further five to seven working days. You can use the account for transfers before the card arrives, but you cannot withdraw cash or pay in person until you have it.
If you prefer to open an account in person, visit a branch with the same documents. The process takes 30 to 45 minutes, and you can often leave with a temporary card or access to your account the same day, though the full debit card still arrives by post.
Closing your savings account after the transfer
Once your savings account balance is zero, you can close it. You cannot close an account while it still holds money. Contact your bank by phone, online, or in person and ask to close the account. They will confirm there are no pending transactions, check for any outstanding fees, and process the closure within one to five business days.
Some banks charge a fee for closing an account early, particularly if you opened it recently or as part of a fixed-term savings product. Check your account terms or ask your bank before you start the closure process. If there is a fee, they will deduct it from your final balance or charge it to your current account.
After closure, your bank will send you a final statement by post. Keep this for your records. The account number cannot be reused, and you will not be able to access it online.
What happens to interest and fees during a transfer
Interest on your savings account stops accruing once you close it, so timing matters if you are near the end of a month or quarter when interest is paid. Some banks pay interest on the last day of the month; others pay quarterly. Check your statement or account terms to see when your next interest payment is due, and close the account after that date if you want to collect it.
If your savings account has a monthly or annual fee, you will still owe it up to the closure date. If you have already paid fees in advance, ask your bank whether they will refund the unused portion. Current accounts often have different fee structures, so compare the two before you move your money.
Moving money if your accounts are at different banks
If your savings account is at Bank A and you want to move money to a current account at Bank B, you cannot do it through the banks' internal systems. Instead, use a bank transfer (also called a BACS transfer or Faster Payment, depending on speed). Bank transfers are free and take one to three business days.
To set up the transfer, log into your current account at Bank B and select "send money" or "make a transfer". Enter your savings account details from Bank A: the account number, sort code, and account holder name. Confirm the amount and the date. The money will leave your savings account and arrive in your current account within the timeframe your bank quotes.
If you want the money to arrive the same day, ask your bank whether they offer Faster Payments. This service costs the same as a standard transfer but completes within two hours on business days. Not all banks offer it, and some charge a small fee, so check before you commit.
Frequently Asked Questions
Will I lose my interest if I transfer money out of savings?
Interest stops accruing once you close the account, so the timing of your transfer matters. If interest is paid on the last day of the month and you transfer on the 15th, you will not receive that month's interest. Check your account terms for the interest payment date and transfer after it if you want to collect the full amount.
Can I keep both accounts open at the same time?
Yes, many people hold both a savings account and a current account. Some banks charge a fee if you hold multiple accounts, while others do not. Check your terms or ask your bank whether there are any charges for holding both before you open a new current account.
What if I transfer money but change my mind?
If you transfer money to the wrong account or want to reverse the transfer, contact your bank immediately. Transfers completed within the same bank can sometimes be reversed on the same day. Transfers between different banks take longer to reverse and may not be possible if the receiving bank has already processed the payment. Act quickly and call your bank rather than waiting.
Do I need to tell my bank I am closing my savings account?
Yes, you must contact your bank to close the account formally. Do not simply stop using it. Dormant accounts may incur fees, and your bank needs to confirm the closure in writing for your records. Call, visit a branch, or use online banking to request closure.
How long does it take to move everything and close the old account?
If you already have a current account at the same bank, you can transfer money the same day and close the savings account within one to five business days after that. If you need to open a new current account first, add five to ten business days for the account to be set up and the debit card to arrive. The full process typically takes two to three weeks from start to finish.