Make money by switching your bank account

Paul Prowse


26th Sep 2023

Reading Time: 5 minutes

Switching bank account to another provider is something everyone should consider. The benefits can be enormous and it’s actually simple to do. As with any service provider, it pays to always be on the lookout for a better deal. Switching bank accounts is no different.

Many of us are happy with our bank account and have no desire to switch, but that’s often because we’ve have never considered it and aren’t aware of the benefits it could bring. Financial regulation in the UK allows consumers to switch whenever they like and banks know this. As a result, they offer various perks to encourage customers to switch.

Some people switch periodically to make sure they are always taking advantage of the latest offers. Once you switch you’re be able to move your current account, along with all your direct debits and standing orders, to another bank within just seven days. It’s also completely free and the banks do all the hard work for you.

Did you know people in the UK are more likely to get divorced than switch their bank accounts during the course of their lives? This is an incredible statistic – and it’s due to us getting comfortable with our familiar bank.

Here are the latest current account switches you can make to save money and earn great rewards:

Current accounts that pay you for switching your bank account

There are other perks to switching your bank account. Some banks actually offer a cash incentive if you do. Here are the ones doing it in 2023:

Nationwide – free £200 for switching

Nationwide offers the most generous switching incentive right now.  Switch to its ‘FlexDirect’ account and you can earn a cool £200 as long as you’re moving from another bank, and you move over at least 2 direct debits as part of the switch.

To be eligible, you can’t have had a Nationwide switch bonus since 18 August 2021.

First Direct – free £175 for switching

First Direct are offering £175 if you switch to their standard account as long as you haven’t had an account with First Direct before (or had an account with HSBC since January 2020).

To get the offer you must pay in at least £1,000 within three months.

Lloyds Bank – free £175 for switching

Another bank offering something similar is First Direct who are giving away £175 to anyone who switches by 14 November 2023 (as long as you haven’t received a switch bonus from Lloyds or its sister bank, Halifax, since April 2020.

Do note there’s a £3 monthly fee unless you pay in at least £2,000 every month.

TSB – free £150 for switching

TSB offers switchers to its ‘Spend & Save’ account a cool £175.  To get it you must switch & move over at least 2 direct debits, spend on your debit card at least once, & use mobile banking – all by 31 October 2021.

On top of this, you can earn £10 cashback for 6 months if you spend 20+ times on its debit card every month. To be eligible for these offers you can’t have had a TSB switch bonus since October 2022.

Ready to change yet?

Many of us can’t be bothered to change our account every six to twelve months to ensure we’re getting the best deal on the market. Some of us have just never thought of it. That’s okay, but it’s worth investigating.

Banks rely on you not looking for alternative accounts, they offer perks to new customers while you just get the same service you always did, good or bad. But now it’s never been easier to switch so it’s a great time to take advantage of the incentives available.

You’re under no obligation to stick with your current bank, and the rewards are out there for those who are open to change.

Disclaimer: Information is true at the time of publication. MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.