UK Bank Switching: Get Paid to Switch Current Account

Banks in the UK routinely offer £100-200+ just to switch your current account to them. It’s one of the easiest ways to earn free money — and the process is fully automated. Here’s how to do it.

Why Switch Bank Accounts?

The numbers speak for themselves:

• £100-£200+ in cash bonuses for switching
• Takes 7 working days via the Current Account Switch Service
• Fully automatic — payments, direct debits, and standing orders are moved for you
• No risk — the service is backed by the Payments Council
• You can do it multiple times with different banks

If you’re comfortable switching once a year or so, you can earn hundreds of pounds with very little effort.

Current Bank Switching Bonuses

Banks change their offers regularly. As of mid-2026, here are the most common bonuses available:

Note: These offers change frequently. Always check the bank’s website or MoneySavingExpert for the latest deals before switching.

How the Current Account Switch Service Works

The Current Account Switch Service (CASS) is a free, automated system that moves your entire current account from one bank to another.

What happens:

1. You apply to the new bank and choose to switch via CASS
2. The new bank handles everything — you don’t need to contact your old bank
3. Your balance is transferred, all payments and direct debits are moved
4. The old account is automatically closed
5. 7 working days after the switch, everything is set up at the new bank
6. Payments made to the old account are automatically forwarded for 36 months

Important: CASS moves everything except savings accounts, credit cards, and investments linked to your current account.

Requirements to Qualify for a Bonus

Each bank sets its own conditions. Common requirements include:

Minimum Pay-In

Most banks require you to pay a certain amount into the account each month (typically £1,000-£2,000). This can be a salary, pension, or transfer from another account.

Direct Debits

You usually need to set up 2-3 direct debits on the new account. Utilities, subscriptions, or charity donations all count.

Online Banking

Many banks require you to log in to online or mobile banking within a set period.

Switch via CASS

The bonus is typically only paid if you use the Current Account Switch Service — not if you simply open a new account.

Time Frame

Some banks require you to meet the conditions for 3-4 months before paying the bonus.

Eligibility Rules

Not everyone qualifies for every bonus. Common restrictions include:

• Existing customers: Most banks won’t pay if you already hold (or recently held) an account with them
• Previous bonus: You must not have received a switching bonus from the same bank before
• Switch period: Some banks only pay once per 12-24 months
• Minimum age: Typically 18+
• UK resident: You must have a UK address and bank account

Always read the terms and conditions carefully before switching. Missing a single requirement can mean losing the bonus.

Best Current Accounts: Beyond the Bonus

Don’t just chase the sign-up bonus — consider what ongoing benefits the account offers.

Rewards Accounts

Some accounts pay ongoing monthly rewards for meeting certain criteria:

• Club Lloyds — cinema tickets, magazine subscriptions, or Disney+ subscriptions (worth up to £180/year)
• Nationwide — Fair Share bonus for eligible members (pays out annually)
• First Direct — offers a £250 overdraft buffer and top-rated customer service
• NatWest — cashback on bill payments through Rewards account

Interest-Bearing Accounts

A few current accounts pay interest on balances:

• Nationwide FlexDirect — 5% AER on up to £1,500 for the first year
• TSB Spend & Save Plus — interest on balances

Compare the Full Package

Look at:

• Monthly fee vs. rewards value
• Interest rates on credit balances
• Overdraft rates
• Customer service ratings
• Branch and ATM access

Switching Frequency and Strategy

You can switch multiple times to collect different bonuses, but keep these points in mind:

• Some banks restrict repeats — e.g., First Direct won’t pay if you’ve had their bonus before
• Leave enough time — don’t switch so often that you miss conditions like “hold account for 3 months”
• Keep a backup account — consider keeping a basic account open separately for emergencies
• Track your switches — keep a spreadsheet of dates, bonuses earned, and requirements met

A popular strategy is to switch to a bank, collect the bonus, then switch to another bank 6-12 months later. Over a few years, this can add up to £500-1,000+ in total bonuses.

Tax on Bank Switching Bonuses

Good news: bank switching bonuses are completely tax-free.

HMRC treats switching bonuses as a gift, not income. You don’t need to declare them on your tax return, and there’s no Income Tax or National Insurance to pay.

This makes bank switching one of the cleanest, simplest ways to earn extra money in the UK.

Worked Example: Switching Twice for £325

Here’s a realistic example of earning through bank switching:

Switch 1: First Direct

Time spent: ~20 minutes setting up, then nothing.

Switch 2: HSBC

Time spent: ~15 minutes.

Total Result

That’s roughly £550 per hour of effort — better than almost any other side hustle.

Step-by-Step: How to Switch

1. Check current offers on MoneySavingExpert or MoneyHelper
2. Pick a bank with a bonus you qualify for
3. Apply online — choose the CASS switching option
4. Provide your old bank details — account number and sort code
5. Set up direct debits on the new account within the required time
6. Pay in the minimum amount each month (salary counts)
7. Log in to online banking as required
8. Wait for the bonus to appear (usually within 1-3 months of meeting conditions)

Top Tips

1. Check MoneySavingExpert regularly for the latest bonus offers
2. Read the terms carefully — every bank has different rules
3. Use CASS to switch — don’t just open a new account manually
4. Meet all the conditions — missing one can disqualify you from the bonus
5. Consider ongoing benefits — a £100 bonus with poor monthly rewards may not be worth it
6. Keep a basic account open as a backup while you switch
7. Set calendar reminders for when conditions need to be met
8. Don’t forget — bonuses are tax-free, so what you get is what you keep

References

• MoneySavingExpert — Best Bank Accounts
• MoneyHelper — Current Accounts
• GOV.UK — Current Account Switch Service