How to Switch Banks and Get Money (2021) Switching to Earn £100-£125 a time

Find out how quick and easy it is to switch banks and get money for doing so.

This is something I have been doing for years and have made well over £1000+.   

Here I share my set up as well as where to find the best current switch offers.

Make Money Switching Banks

Switching Banks For Money

Below I share the set up all you need to get started as well as sources for finding the best current bank switching deals and incentives.

Let’s have a look.

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.

Key Points:

  • 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

Best Current Bank Switching Deals

You can typically make £100-£125 per bank switch.  Although my best switch was for £250 to Bank B.

Here are some of the best current account switches on offer:

  • Natwest £125 (2 options)
  • HSBC  £125 (plus entitled you to open £250 a month Regular Saver at 2.75%
  • RBS  £100 (2 options)
  • Lloyds £100 (+ Club Lloyds annual benefits)

Total switching value of £450.

Note: All offers terms and conditions subject to change.   Please also always double-check  T&C’s before going ahead with the switch.

See further down in the post for where to double-check for the best latest deals and how to be kept up to date with any new deals.

Tip: If you live with a partner you could theoretically both take advantage of the switches and benefit your household to the tune of £900 over the course of a few weeks.

Natwest £125  (Choice of 2 Options)

The Natwest Reward Account will pay you £125 if you switch your current bank account to them by November 19th 2020.

Being a reward account it will charge you £2 a month but will pay you up to £5 a month in rewards for:

  • logging into the accounts mobile app once a month
  • £2 for each direct debit up to 2

The other option is the free current account Natwest Select Account which also pays £125 but has no monthly charges, but also no monthly rewards.

To qualify for the switch for both accounts you’ll need to:

  • Request switch by November 19th
  • Pay in £1500 by 15th January 2021
  • Log in to online banking or the mobile app by 15th January 2021

Payment of bonus: You’ll receive the bonus by 12/02/2021

Eligibility: This offer is available to new and existing customers who haven’t previously carried out a switch since October 2017 from any Natwest Group Bank (Natwest, RBS and Ulster).

HSBC Advance £125 

The HSBC Advance account pays £125 for switching it.

Open the account and start the switching process from your current bank account within 30 days.

You’ll need at least 2 direct debits or 2 standing orders on the account you switch from.   The option of standing orders is helpful as you can set these up yourself to your other accounts.

You’ll need to pay at least £1750 a month into the account.  If this is too high to do in one go, you can break the payments down and have them going back and forth to existing accounts if you like.

As a bonus option, if you have an Advance account you will be entitled to open an HSBC Regular Saver at 2.75% interest.  You’ll be able to save up to £250 a month.

Payment of Bonus: You’ll receive the bonus within 30 days of the switch completing.

Eligibility: New customers who haven’t had an HSBC, First Direct or M&S account since January 1sr 2017.

RBS £100

RBS is of the same banking group as Natwest.

Their bank switch deals are very similar, with the main difference RBS are paying you less, £100 instead of £125.

The 2 options you are:

  • RBS Reward £100 (£2 a month, but up to £5 a month cashback)
  • RBS Select £100  (no fee and no cashback)

To qualify for the switch for both accounts you’ll need to:

  • Request switch by November 19th
  • Pay in £1500 by 30th December 2020
  • Log in to online banking or the mobile app by 30th December 2020

Payment of bonus: You’ll receive the bonus by 29/01/2021

Eligibility: This offer is available to new and existing customers who haven’t previously carried out a switch since October 2017 from any Natwest Group Bank (Natwest, RBS and Ulster).

Lloyds Bank £100

The offer of the Club Lloyds account is only available until November 9th 2020.

It’s a nice simple switch with minimal requirements.

The account charges a monthly fee of £3, which is waived if you pay in £1500 a month.

Once you have a Club Lloyds accounts, you’ll be entitled to choose a reward every year.

Currently one of the following

  • Digital movie rentals (monthly movie rental from Rakuten TV)
  •  Gourmet Society digital membership (25% of the bill including drinks)
  • 6 Cinema Tickets valid for 12 months
  • Annual Magazine Subscription (from a choice of 23)

To qualify for the switch you’ll need to:

  • Request switch by 9/11/2020
  • Pay in £1500 a month to cancel out the £3 monthly fee

Payment of Bonus: You’ll receive the bonus within 10 days of the switch completing.

Eligibility: New customers who haven’t had a Club Lloyds or CLub Lloyds Platinum account since April 2018.

Which is the Best Deal to Switch too?

Generally, the best bank to switch to is the one that 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.

Overall you’ll want to factor in:

  • Value of the switch
  • Date the offer ends
  • How soon the bonus is paid (if you need the cash sooner)

The bank switch process is so easy it ranks high on my list of ways to make money from home if you are looking for extra £500+ a month.

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.

What You Might Need to Switch Bank Accounts 

There are sometimes basic terms and conditions you will need to meet in order for you to switch bank account and get the money on offer.

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 low minimum direct debits are:

  • Oxfam £1
  • Red Cross £2

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.

Where To Find The Best Bank Account Switch Offers

The Moneysavingexpert best bank accounts page features the best bank accounts in approximate order of value of the 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.

Switching to a Building Society

When it comes to switching current accounts, there are very few differences between banks and building societies.

So if a building society also has a great switch deal that you are eligible for, definitely consider it, assuming local access isn’t required and you can satisfy all the other terms of the offer.

One of the best past deals was the Nationwide Building Society who for many years offered £100 refer a friend switch incentive.  You could recommend up to 5 friends a year and each earn £100.

Hopefully, it’s an offer than will return at some point.

Other Advantages of Switching Banks and Building Societies

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 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

Related posts:

Find out how much interest on a million pound savings in bank at current rates.

Conclusion

Now I’d love 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.

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