Find out how quick and easy it is to switch banks and get money for doing so.
Plus how to set yourself up to quickly and easily take advantage of future deals.
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.
How to Make Money Switching Bank Accounts
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.
- 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:
Note: All offers terms and conditions are subject to change. Please also always double-check T&C’s before going ahead with the switch.
Total bank switching value of £290-£490.
Tip: If you live with a partner you could theoretically both take advantage of the switches and benefit your household to the tune of £580-£980 over the course of a few weeks.
Offers are still fairly limited since the pandemic, so hopefully more of the easier ones will be available soon.
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.
You need 2 direct debits or standing orders. Standing orders make this an easy offer because you can just set them up to go back and forth from your own bank accounts. The HSBC Advance account is also linked to a regular saver in which you can save £250 a month at 1% interest.
Apply before August 19th.
£140 is paid within 30 days.
Virgin Money M Plus
There are 3 steps to qualifying for your £150 Virgin Experience Vouchers:
- Have 2 direct debits on the account
- Register for Virgin Money mobile app
- Put a £1000 into linked easy-access savings account
You can withdraw the £1000 without charges after 14 days.
This account switch is only for high earners or very large savers and investors with Barclays. To qualify for a Barclays Premier account you need to earn £75k a year or have £100k invested or saved with Barclays.
What’s the Best Bank Switch?
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.
Another site you can rely on for latest switching deals is becleverwithyourcash.co.uk by Andy, and one of the leading personal finance sites in the UK.
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 that 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
Different banks have different maximum withdrawal limits at free cash machines. If ever you need more cash at a time it can pay to have more than one bank card to hand.
Find out how much interest is earned on one million-pound saving in a bank at current rates.
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.