Banks and building societies will have a maximum of seven working days in which to complete a current account switch, down from the present average of around 18 days.
Customers wishing to change account will be able to agree a switch date with their new provider, who will be responsible for ensuring all payments going in and out will be transferred in time.
However, there’s still no requirement for cards and PINs to arrive in the seven days.
The new rules are designed to raise confidence in the process and improve competition in the market. More than four in ten consumers told a recent survey by uSwitch.com that they would be more likely to switching current account when the seven-day service is in place.