Switch & earn: 2024’s lucrative bank switch incentives

Did you know that you can earn money by changing bank accounts? Of course you did. So let’s take a look at some of the best bank switch offers currently available on the market. It’s a simple way to make £100’s every year.

The best bank switch incentives

Currently, you can switch to:

• Barclays £175
• TSB £220 (and gift)
• Monzo £5
• Kroo £5

Switching for cash

Let’s be honest, banks and building societies aren’t here to help us; they want our money. And to attract our custom, they offer us all kinds of rewards in the hope that we become customers for life. This could be a case of wine, a cashback offer, a gift card, improved interest rates or, best of all … cash incentives.

And the good news is to make extra cash from your bank by switching your current account.

And there is a lot of money to be made, often well over £100 each time.

Why do banks offer a current account switch incentive?

The current account market has become more competitive over the last few years, and swapping your account is far simpler. And banks like to think that you’ll never leave once you’re with them. In turn, you will end up giving them lots of money.

Is it complicated to switch your bank account?

Changing your bank account could not be easier. Thanks to the current account switch guarantee introduced in September 2013, your account could be switched in, errrrr seven days (well, seven working days). Your new provider sorts out the whole process, including the swapping of direct debits and the moving over of standing orders and outgoing payments. In fact, it’s so easy to do that over 3 million accounts have been switched.

The switch process can be completed online and usually take 15 minutes of your time. You even get to choose your own switch date. You will rarely need to visit your local branch.

How much do you usually earn from a bank switch bonus?

Most accounts will pay in the region of £100-£150 for switching. Sometimes this can be as much as £250, although this usually means staying with the bank for at least six months.

But I like my bank

What if you want to keep your main current account? That’s not a problem, and you can create a 2nd current account and use your new account details to complete the switch. You’re not limited by the number of current accounts you can hold.

The easiest way to create a 2nd account is through your current provider. Usually, this can be done through online banking and can be done within minutes. And because you’re already a customer, they’re unlikely to ask you for ID.

Direct Debits

When you have your 2nd bank account ready, it’s time to look at setting up direct debits. Now you may be wondering why you need to do this. Most banks require you to complete the switch with at least two direct debits to qualify for the bonus.

You can sign up for an app like Moneybox or Plum, which take money by direct debit. Plum is free, whilst Moneybox charges £1 per month. Both can be set up online with little hassle. Alternatively, you can set up a direct debit with a charity or the Lottery. Take a look at my post about cheap direct debits you can set up.

If you’ve opened a new account to begin a switch, wait for the direct debits to become active. Of course, this depends on the dates you arrange for them to be taken out of your account. Once your account is set up with active direct debits, you’re ready to roll and swap away!

Anything else?

To receive the switching incentive, you usually have to deposit a certain amount of money within a period of time or every month if it’s an incentive for staying with the bank. Direct deposits don’t have to be from wages and can be transferred immediately. However, always check the T&Cs before switching.

You will also (usually) have to close the old bank account that you’re switching from. But don’t worry, when you start the switching process, it just involves ticking a box. Then, your old account will be closed automatically. You don’t have to do anything else.

How much can you make?

Over £1,000 in the space of a couple of years is certainly possible. It does depend on when a bank switch bonus is offered, but they usually appear every few months.

Does switching banks affect your credit rating?

If you regularly switch your main current account, it may indicate that you’re not financially stable and less likely to pay off your debts. The best thing to do is to have at least one current account that is several years old. Although, as a regular switcher and having access to my credit report, I have never noticed any adverse effects from switching accounts.

The best deals for switching banks

Please note that the offers below are from all genuine UK organisations and all accounts are regulated by the Financial Conduct Authority (FCA) and the Financial Services Compensation Scheme (FSCS).

Why not take a look at current accounts that give you cashback on your bills? They charge a monthly fee but are generally good value for money.

FAQs