In this post, you are going to find out how quick and easy it is to make money for switching banks.
This is something I have been doing for years and have made well over a £1000+.
Below I share the set up you need to get started as well as sources for finding the best current bank switching deals and incentives.
Some of the switches require a referral code and you are welcome to request mine for a nice easy £100 opening a bank account payday. Plus you can refer more friends and make up to another £500!
Let’s get started.
Switching Bank Accounts Is Easy
Since 2013 when the Current Account Switch Service (CASS) was introduced switching bank accounts became really easy and only takes 7 days to complete.
- Takes 7 days
- The new bank closes your old bank account for you
- All existing standing orders and Direct debits are transferred to the new account
- Switch Guarantee ensures any payments made in error to your old bank account will be transferred to your new account for the next 3 years
- Get paid cash
Make Money Switching Bank Accounts
You can typically make £100-£125 per bank switch.
My best switch was for £250 to Bank B.
Examples of recent deals this year (2019) have been:
- HSBC £175 cash
- First Direct £50 cash
- M&S £100 Gift Card + £80 Gift Card after 1 year
- Nationwide £100 (friend referral switch + refer up to 5 friends for another 5 x £100)
Generally, the best bank to switch to is the one which offers the best deal or rewards at the time.
When a good bank switch offer is available it’s best to take advantage of it as soon as you can in case it’s withdrawn early and you miss out.
Setting Yourself Up For Future Bank Account Switches
If you don’t have a current account you want to switch you can simply set up a new bank account and prepare it purely for switching or bank swapping in the future.
Here’s how I set myself up.
Open a New Account Purely For Switching
Set up a new bank account with a bank that does not offer a deal to switch to them. One option could be to open a new account with your existing bank because switching deals are not for existing customers. Many banks allow you to a second current account and they are usually relatively quick to open.
Optional: Set this new account up with a minimum of two Direct Debits. These can be for any amount. You could transfer over some existing monthly direct debit bills, credit card payments.
Put some money in the account and set up monthly standing orders back and forth to your other main current account.
This current account would then be ready to switch at any time.
Extra – Open Third Account:
If you have the time and inclination you could also set up a third account.
The reason it helps to have a third account is that the 2nd account will be closed when you switch to a new bank account. As part of the switch, you may have to keep the account open for a year. This is sometimes why good cashback deals are staggered. For example, you might get £100 a month after switching and then another £80 if you keep the account open for a year.
During this waiting time, there might be 2-3 other cashback deals available that you cant take advantage of.
Switch For Cashback: With a 2nd and possibly a third account set up, you are now ready to make some decent money switching bank accounts.
Credit Rating: In general having a couple of credit searches isn’t likely to affect your credit rating. I tested this myself and my rating before and after 2 bank switch applications stayed at the maximum 999.
For further information see Experian’s Will changing bank accounts affect my credit score?
What You Might Need to Switch Bank Accounts
Direct Debits – Some bank accounts you switch to will set a condition for you receiving cashback that as part of the switch there is a minimum of 2 direct debits on the account. This shouldn’t be an issue for most bill payers.
If you struggling to find enough Direct Debits, which can be the case with multiple switches, it can even be worthwhile setting up small £1 or £2 monthly donations to a charity. You can cancel them when the conditions of the switch have been met.
Two well-known charities that have £1 minimum direct debits are:
- Red Cross
A minimum monthly income – if this figure is higher than your typical monthly income you can simply set up multiple smaller payments back and forth from your other bank accounts.
Set Reminders For Meeting the Account Conditions
Before or when the old account is closed, cancel any standing orders you have in place to that account.
If you need to, set up new ones to the new account.
Make a note or set reminders for any key details of the account, for example, if it’s a high-interest account for a limited period, make a note of the end date so you can take action to move the money to a better-paying account.
Refer A Friend Bank Account Switches
Some banks offer a refer a friend scheme that pays one or both parties for switching.
Below I feature deals where you can get paid for switching, then refer any other friends and collect more referrals.
Nationwide Refer a Friend Switch Bank and get £100
£100 for switching to Nationwide FlexDirect then up to another £100 x 5 a year for recommending friends to switch.
Heres a video that highlights how quick and simple the process is.
You should receive the £100 within 30 days of the switch being completed and the old account closed.
You could then refer up to 5 people a year and make another £500 per tax year.
One tactic for couples is for one person to switch, receive the £100. Once your switch is complete you can refer your partner and share another £200 between you.
The account also offers 5% interest for the first year on balances up to £2500 which is potentially another £125 in interest.
For this particular account, you will need to switch an account that has 2 active Direct Debits.
For more details to see Nationwide Refer a Friend.
Contact me for a referral code please email or contact me via any social media channels. All I need is the email address you want to receive the switch details to.
Where To Find The Best Bank Account Switch Offers
The Moneysavingexpert best bank accounts page features the best bank accounts in approximate order of pst valuable switching perk.
MSE also clearly covers any conditions of the switch in order to qualify. You can be sure the best bank switch deals are kept fully up to date.
The MSE Money Tips weekly email will alert you to any new switching deals.
Once you’ve completed all available switches, some months might pass before new deals are available at banks you haven’t already used.
When good new deals become available they are quite often mentioned in the email header, so even if you don’t read the email for a few weeks, you’ll spot when new good deals are on the scene.
Other Advantages of Switching Banks
Sometimes you’ll switch to a new bank account and end up keeping it open for the advantages it offers.
These might be
- Availability to a high-interest Regular Saving accounts
- Higher interest on current account balances
- Cashback on transactions and monthly bills
- Freebies such as magazine subscriptions or cinema tickets
Now I’d like to hear from you.
Have you switched bank before? How much have you made?
Or if you have any further tips please comment now.
Don’t forget to share this post with anyone you know who might benefit from earning a few extra hundred pounds a year.