Bank switching for beginners 🪴

Banks are always looking to attract new customers. That’s why they offer switching bonuses: one-off payments for new customers who fulfil some basic requirements.

The bonuses are generous (up to £200 each!) and surprisingly easy to obtain. Thanks to the Current Account Switch Service, switching an account between most banks is smooth and effortless. All you have to do is apply for a new account at a different bank and tell them you want to switch an existing account to them. Everything is then transferred automatically - including any money in the account or any associated Direct Debits.

You can collect as many of these bonuses as you like. As long as you meet the eligibility requirements of each offer, you’re in the money.

You don’t even have to switch your main bank account. Most repeat switchers open a new “burner” bank account specifically for bank switching. This means that your main bank account isn’t involved at all, so you don’t need to worry about anything important (e.g. salary) moving to a new destination.

Step-by-step guide 🌳

Step 1️⃣: Choose the account you’re going to switch 🏦

There are two main options here:

• Use an existing current account. If you’re unhappy with the service or perks associated with your existing current account, consider switching it.
• Set up a separate “burner” current account solely for collecting switch bonuses, leaving your main account and day-to-day banking untouched.
• This is the recommended option if you’re planning to switch repeatedly to pick up all the available bonuses. Monzo is a good place to start, since they’re currently offering £5 free just for opening an account.

Step 2️⃣: Check for live bank switching offers using Switch Tracker 📱

The number of live offers is changing all the time. Sometimes there might just be one or two, but there can be many running simultaneously. You can stay updated on the latest switching offers for free using the Switch Tracker app.

Step 3️⃣: Plan your switching order 🔄

If there are lots of offers around, you can be clever about the order in which you switch. Factors you might consider when planning your switch order include:

• Offer expiry dates - you might want to grab an offer before it disappears
• Bonus payout speed - you might want to prioritise the quickest payout
• Eligibility criteria - you might qualify to repeat an other after a certain time period

All of this information is displayed for each offer within Switch Tracker.

Step 4️⃣: Meet the requirements of each offer to ensure you get your bonuses 💰

Pay attention to the eligibility criteria for each offer. For example, some offers are only available for new customers - whereas other offers are available to existing customers, too.

Follow the steps listed in Switch Tracker to meet all requirements of the offer. Tick off each step as you go - use the app as your “to do” list.

There are a few common types of requirement:

• Some offers require that your switch includes moving active Direct Debits from your existing account to your new account. Switch Tracker allows you to set these up for only £1. After you’ve set them up on your existing account, the Current Account Switching Service means that they will automatically move to your new account as part of the switch process.
• Some offers require that you deposit a certain amount of money to your new account. This can be achieved simply by temporarily moving money around between your accounts - you don’t need to keep the deposit in your new account for more than a few minutes! You also don’t need to deposit it all at once, as long as the amount you pay in adds up to the required amount.

Step 5️⃣: Wait for the bonus to arrive, then switch again! 💷

That’s it! Once you’ve done the necessary ‘work’ to meet the requirements, it’s time to sit back and wait for the bonus to be paid into your new account. After the bonus arrives, you're good to start a new switch and repeat this process!

More resources 🧰

MoneySavingExpert: Can you make £1,000s by repeatedly switching bank?