Part of our Bank Account Switching UK hub — covering CASS, current accounts, and switching bonuses.
Bank switching bonuses are one of the few genuinely free sources of cash available to UK adults. Banks compete aggressively for current account customers, and the cash incentives — typically £100 to £200 — require nothing more than moving your account using the official switching service. This guide explains what’s currently on offer, what the requirements actually mean, and how to make the most of switching more than once.
How Much Can You Earn from Switching?
Bonuses in 2026 range from around £100 to £200 per switch, depending on the bank and how competitive the market is at that moment. Some banks have periodically offered up to £175 or more to attract new customers. Offers rotate — a bank might run a promotion for a few months, then withdraw it.
Beyond the one-off cash bonus, some accounts pay ongoing rewards: monthly cashback on household bills, interest on your in-credit balance, or perks tied to packaged accounts. The bonus gets you in the door, but the ongoing features determine whether it’s worth staying.
Offers change frequently. The specific amounts below reflect the types of deals commonly available in 2026 — always verify current figures directly with the bank before applying.
Current Switching Offers
| Bank | Typical Bonus | Key Requirements |
|---|---|---|
| Nationwide FlexDirect | £100–£175 | Full switch, 2+ direct debits, pay in £1,000/month |
| First Direct | £100–£175 | Full switch, never had a First Direct account |
| NatWest / RBS | £100–£150 | Full switch, 2+ active direct debits |
| Halifax | £100–£150 | Full switch, pay in £1,500/month, new to bank |
| HSBC | £100–£200 | Full switch, qualifying activity within 30 days |
| Lloyds Bank | £100–£150 | Full switch, maintain 2+ direct debits |
| TSB | £100–£125 | Full switch, minimum monthly pay-in |
Check MoneySavingExpert’s Best Bank Accounts page for live, verified offer amounts — they track every active deal in real time.
How the Switch Service Works
The Current Account Switch Service (CASS) is the government-backed system that makes switching safe and automatic. When you apply to a new bank and select the full switch option, CASS handles everything:
- All direct debits and standing orders move to your new account
- Your salary and any incoming payments are automatically redirected
- Your old account closes on the switch date
- Any payments sent to the old account are redirected to your new one for 3 years
The whole process takes 7 working days from the switch date you choose. Under the Current Account Switch Guarantee, if anything goes wrong — a direct debit doesn’t move, a payment bounces — your new bank must refund any charges or interest you incur as a result. There is no financial risk to switching.
What Bonus Requirements Actually Mean
Every switching offer comes with conditions. Understanding them is the difference between collecting the money and missing out.
“Full switch using CASS” — you must use the official switching service, not just open a new account manually. The bank can verify this.
“New customer” or “new to this bank” — you’ve never held a current account (and sometimes any account) with that bank before. This is checked. If you had an account closed years ago, you may still be ineligible — check the exact wording.
“Minimum monthly pay-in” — you must deposit at least the required amount each month (typically £500–£1,500). Moving the money back out again the same day is usually permitted — the bank wants to see the pay-in register, not that you leave the money there.
“Two active direct debits” — you need at least two direct debits coming from the account. If your old account doesn’t have any, set some up before switching (utility bills, a streaming subscription, a charity donation — all count).
“Complete within X days” — most banks require you to meet all conditions within 30–60 days of switching. Don’t delay.
Serial Switching: Collecting Multiple Bonuses
There’s nothing illegal or even frowned upon about switching banks repeatedly to earn bonuses. Banks know customers do this; they structure their offers accordingly.
A realistic annual strategy:
- Choose Bank A (strong bonus, decent ongoing features)
- Switch, meet all requirements, collect the bonus
- After the minimum holding period (typically 12 months), switch to Bank B
- Repeat — rotating through banks you haven’t used before
Keep a simple spreadsheet noting which banks you’ve had accounts with, the switch date, the bonus received, and the earliest date you could switch again. This avoids accidentally applying to a bank where you’re ineligible.
You can also hold multiple current accounts simultaneously. Keep one as your main account for switching eligibility and use others for overflow, savings, or specific bill payments.
Choosing the Right Account Beyond the Bonus
If you’re going to switch anyway, look past the one-off cash. Our best current accounts guide compares the full picture — cashback rates, in-credit interest, app quality, overdraft charges, and customer service scores.
Key features worth comparing:
Cashback on bills — some accounts pay 1–15% cashback on direct debits to energy, broadband, and phone providers. Over a year, this can exceed the switching bonus itself.
In-credit interest — a handful of accounts pay competitive interest on balances up to a set limit. Useful if you keep a buffer in your current account.
App and budgeting tools — digital banks (Monzo, Starling, Chase) lead here. Traditional banks have improved but still lag on features like savings pots and spending categorisation.
Overdraft rates — if you occasionally go into the red, overdraft rates matter more than the bonus. Rates range from 15% to 40% EAR; compare carefully.
Branch access — if you ever need to pay in cash or speak to someone in person, check the bank has branches near you.
Tax on Switching Bonuses
Switching bonuses are not taxable. HMRC classifies them as promotional incentives — not interest, not income. You don’t need to report them on a self-assessment tax return.
Interest earned on any balance you keep in the account is different — that counts towards your Personal Savings Allowance (£1,000 for basic rate taxpayers, £500 for higher rate). But the bonus itself is tax-free.
Step-by-Step: How to Switch
- Pick your new bank and read the bonus terms carefully before applying
- Check eligibility — confirm you qualify as a “new customer” under their definition
- Apply online — complete the application and ID check
- Select “Full Switch” via CASS — this triggers the official switching service
- Choose your switch date — at least 7 working days from today
- Receive your new card — it arrives before the switch date
- On switch day — direct debits, standing orders, and balance all move automatically
- Meet bonus conditions — pay in the required amount, ensure direct debits are active
- Collect your bonus — usually paid within 30 days of meeting all criteria
If your bonus doesn’t arrive on time, contact the bank’s switching team with evidence that you met the conditions. Escalate to the Financial Ombudsman if needed — they handle switching bonus disputes.
Switching Checklist
Before switching:
- Read the full bonus terms and conditions
- Confirm you qualify as a new customer
- Note all active direct debits on your old account
- Check if you have an overdraft that needs clearing or porting
- Confirm you can meet the monthly pay-in requirement
After switching:
- Verify all direct debits have moved (check after first billing cycle)
- Update salary payment if your employer needs the new details
- Make any required card transactions within the deadline
- Note the date your bonus should be paid
- Follow up with the bank if the bonus doesn’t arrive on time