Today, I’m excited to share a fantastic guest post from the UK money blog, My Side Hustle. This post covers something I’ve always wanted to try but never had the courage to do—switching your bank account to earn sign-up bonuses. There are tons of great tips here, so I hope you find it useful!
Did you know you can earn hundreds of pounds just by switching your current account? It might sound complicated or time-consuming, but it’s actually super simple and one of the easiest ways to make extra money.
Over the past few years, I’ve made over £500 this way, and you don’t even have to give up the main account you’ve had for years or even decades.
Why are banks giving away free money?
You might think there’s a catch. Why would a bank pay you just for switching your account to them? The answer is simple: they want to make money from you. By getting you as a customer, they can sell you more products like account upgrades with monthly fees for perks like travel insurance or mobile phone cover. They can also offer you loans or credit cards, earning money from the interest you pay.
Banks are willing to give you £100 or more because they expect to make even more money from you in the long run. But you can outsmart them—switch your account, get paid, and avoid using their extra services if you don’t need them. There’s no limit to how many times you can switch your account.
But I don’t want to lose the account I’ve had for years
The great thing is, you don’t have to lose your main account. I’ve kept my main current account for a decade, even though I’ve switched accounts multiple times.
How?
Just open a dummy account specifically for switching. I logged into my online banking, clicked the option to open a new current account, and because the bank already had my details, they opened a second account within minutes!
How do I switch?
When you apply for a new bank account, ask your new bank to switch your old account. The application form will usually ask for the details of the account you want to switch. You’ll need to agree to the ‘Current Account Switch Agreement’ and the ‘Current Account Closure Instruction’ provided by your new bank.
Choose a switch date. The process can take up to seven working days, and you can use your old account until the switch date. All your direct debits, standing orders, and salary will be automatically transferred by your new bank.
How to meet the bank’s criteria
Some banks have specific criteria, like a minimum monthly salary or a certain number of standing orders or direct debits. For example, HSBC offers £200 in cash, but you need a monthly salary of £1,750 and two standing orders or direct debits. If you don’t meet these criteria, you can transfer money from another account and set up standing orders to meet the requirements.
You can also set up standing orders or direct debits to another account, like a savings account, or even to a charity.
Current account deals
What deals are available? Be Clever With Your Cash has an up-to-date list of accounts offering cashback and high-interest rates if you’re looking to save.
Will it affect my credit score?
Anytime a credit search is done on you, it can impact your credit score. Opening a new current account involves a credit search. From my experience, opening one additional account has minimal impact. However, opening multiple accounts in a short period can have a larger impact. If you’re planning to take out a mortgage, loan, or credit card soon, it might be wise to wait before opening a new account.
I’ve opened two or three accounts within a couple of months and had no issues.
What if something goes wrong?
All banks and building societies have signed up to the Current Account Switch Guarantee, which means they must switch your account within seven working days. If any payments are missed due to the switch, you’ll be refunded.
Is it worth it?
Absolutely. With today’s technology, you can open a new account in minutes. There’s rarely an advantage to staying loyal to your bank, just like with insurance or utility providers. Many people switch their insurance or utility providers for better deals, so why not do the same with your current account?