Bank switching incentives: how I earned £550 by regularly moving current accounts

Taking advantage of switching bungs really is easy money – just be mindful of your credit rating

I’d read about people making up to £1,000 by switching bank accounts and, as I could do with some extra cash, I thought I’d try it myself. 

Switching current accounts used to be a headache that could take weeks or even months, but now, under the Current Account Switch Service, it just takes seven working days. 

Remember that these are ‘working’ days, so it may take slightly longer if you switch during a bank holiday period. 

Usually, you will receive your switching fee a few days after your successful move goes through. 

As long as the banks you are moving to and from are members of the Current Account Switch Service, you can switch with ease. 

Around 50 banks and building societies belong to the service. You can't switch a savings account or ISA, and you might want to be careful if your existing account is overdrawn, as you will need to arrange an overdraft facility with your new bank.

Many banks also facilitate switching by enabling you to download an app to your phone and then move banks using it. 

Fancy earning some extra cash? Here are the best bank switching bonuses available now

What you’ll need to switch

You will usually need your passport and/or driving licence and details of the bank you want to move from and have to tap in the details. 

After just a few clicks, some minor admin, and a short wait, you eventually receive your cash. 

Often, the bank will only allow you to switch and receive a fee if you have never held a bank account with them before, or only if the previous bank account with them was opened within a certain time period. 

For example, customers can’t currently switch to First Direct if they have previously held a First Direct account or one with HSBC from 1 January 2018. 

Open a switching current account

If you don’t want to switch from your main account, you could open a new current account and switch from it instead. 

I didn’t want to switch from my main bank account as it is free and I have a useful overdraft facility with it, so I opened one with Lloyds instead and benefited from the free Disney+ it provided for a few weeks while I set about the switching process. 

Many modern bank accounts offer additional benefits, such as free insurance, breakdown cover and/or entertainment packages, such as free Apple+ TV or free Disney+ for a certain period, which can make the fee worth paying. 

Then, I opened an account with NatWest to earn £175. 

Bank switching tick list

Usually, the bank will stipulate a number of hoops for you to jump through, which you have to complete in order to win your fee.

Read the small print carefully to make sure you qualify. 

As well as signing up, you may have to pay a minimum amount into your new account, often around £1,000. However, the money doesn’t usually have to stay there longer than 24 to 48 hours, so you can soon move it elsewhere. 

You might also have to move a handful of direct debits to the account, which can be a bit fiddly, and or log in to the app a certain number of times and make a number of payments using the debit card you get with your account. 

I picked a few minor direct debits to move across, as I wanted my main payments to stay with my usual current account.  

I also found that some direct debits were easier to move than others. For some, I would have to ring up to do so. I didn’t want the hassle of this, so, I selected my car insurance and two pet insurance payments, as I found I could easily move these online. 

I had to pay in £1,250 – with the money staying in the account for at least 24 hours – add three direct debits to the account and log in to the app. 

The £175 payment came in handy while I wasn’t working and was laid up recovering from hip replacement surgery. 

Switching to Nationwide

Next, I decided to switch to Nationwide, which offered £200 for moving to them. 

It had an app but was a little more old-fashioned as the account came with a code-generating widget for making payments. I used to have one of these for my main bank account, but that was 20 years ago!

Nationwide often also rewards loyal customers throughout the year, making ad hoc payments to them of £100 or more. 

However, you usually also have to have a savings account with them and have held it for a certain period. Currently, I don’t qualify for this, but I am considering opening a savings account to benefit from this generosity in the future. 

I had to move at least two direct debits to the account, pay in £1,000, and make a debit card payment. All reasonably easy things to do. 

The banks also keep you informed about the progress of your switch with text messages and emails, which are handy. 

You usually also have to complete the move within a certain period of time, such as 45 days. 

I am now switching to First Direct, which comes highly recommended for its customer service, to earn a bonus of £175. 

Read the small print

Do read the small print, though, as many current accounts now also charge a monthly fee, which can be anything from £3 to £18, depending on the account. 

If you don’t plan to stick with the current account, pick one with the lowest fee possible to avoid losing money. 

You will need to make sure you have enough cash in your account to cover the banking fees and any other payments that will go out. If you’re busy, you can easily lose track of these payments. 

I recently forgot to add extra cash to my Nationwide account and missed a direct debit payment as there were insufficient funds in it.

However, I was able to cover the payment in time with a debit card from my main account to avoid any problems. 

Be mindful of your credit rating

Do be careful of your credit rating. Switching banks can lower it on a temporary basis. 

That’s why it’s a good idea not to switch banks if you’re planning to apply for a mortgage, loan or other credit in the short to medium term. 

I decided to take the risk as I am not immediately planning to move house or make any major purchases. 

Plus, as a freelancer, it can often be difficult to get credit or qualify for loans anyway. 

However, switching can be a handy way to make some additional cash in just a few weeks. If you fancy giving it a try, we regularly update this guide to the best bank switching bonuses on the market.