2026 Guide to Bank Switching Bonuses
Bank switching is super simple and is a great way to add some quick cash to your bank balance. Banks offer these incentives to try and entice you into switching away from your current provider to them.
How long have you been with your current bank? There’s a huge amount of competition between banks to encourage you to switch to them. The incentives include cash bonuses, cashback on bills and zero-interest overdrafts.
Table of Contents
Here’s my guide to bank switching bonuses, including how the process works and how to choose the right bank for you. If you’d prefer to listen you can do so by clicking play on the podcast episode below.
How to switch banks
The Current Account Switching Service is a free to use service that guarantees to take care of your switch from your old bank to your new bank within seven working days.
When the Current Account Switching Service switch your bank account they also transfer all your payments, direct debits and standing orders for you without the need to contact the bank or supplier.
You’ll also have any payments in or out of your old account monitored for a minimum of 36 months (to make sure that you don’t have any missing payments). Additionally, if there are any mistakes you’ll get refunded any interest or charges incurred!
Choosing the best bank for you
If you’re unsure which bank to switch to it’s best to access a number of factors. When I choose to switch I looked at these features before switching:
- What incentive is the bank offering?
- What terms and conditions do I need to meet before qualifying for the incentive?
- Does the bank have a local branch that I can visit in the case of an issue with my account?
- Are there any fees or charges attached to the account?
- Is the bank ethical?
Comparison websites are a good starting point for anyone trying to find a current account tailored to their needs. The latest bank switching bonuses:
Make sure to check the terms and conditions for these offers as they can vary per bank. Some require a minimum number of direct debits, others require you to login and make a deposit of a specific amount.
My experience switching banks
My first bank switching experience was a switch from HSBC to Natwest. I completed all the information required by the Current Account Switching Service and uploaded proof or address and photo ID to Natwest. This switched earned me £150. The switch was completed within 7 days, I received my bonus the following month and there have been no issues with payments transferring from my old account to my new account.
The second bank switching bonus came from TSB. I switched to them using my partners referral link at the time (meaning that we both pocketed £100 each). Again, this process was easy, problem free and the bonus was in my account within 30 days.
A record of my switches:
| Bank | Bonus | Date |
|---|---|---|
| Natwest | £150 | 2019 |
| TSB | £100 | 2020 |
| Lloyds | £150 | 2020 |
| Virgin | £100* | 2022 |
| First Direct | £175 | 2023 |
| RBS | £200 | 2024 |
| Nationwide | £175 | 2026 |
| Total | £1,050 |
*The Virgin Money switch earned me 20,000 Virgin Red points which are worth £100 – I plan to use these on a future holiday. I use my switching money to top up my emergency fund.
Bank switching bonuses to earn extra cash
Bank switching bonuses FAQ’s
I know I had a lot of questions before I made my first switch so I’ve included some of the common questions and concerns that come up regarding bank switching bonuses.
Can switching banks effect my credit score?
For most people switching banks will not have an effect on your credit score. However, if you’re rejected, or have tried to open a number of accounts in a short space of time it could impact it in the short-term effect. If you’re about to make a big credit application (e.g. a mortgage) it’s recommend that you switch after that. See our guide to improving your credit score.
Do I need to let my employer know that I’ve switched banks?
The Current Account Switching Service will move your salary payments to your new account – so no. I personally let my employer know my new bank details just for peace of mind.
Are bank switching bonuses taxable?
Switching incentives, just like cashback rewards on spending are not taxable. Therefore, you do not need to declare your switching bonuses to HMRC.
Can I change my mind about switching?
The Payments Council suggests that if you change your mind during the seven-day switching process, it’s actually better to let the transfer happen, and then use the service to switch back to your original provider.
Can I get a bonus for switching business banks?
Most business online banking providers do not currently offer bank switching bonuses, but keep checking back to see if this changes.
Can I bank switch without switching my main bank?
Yes. You can set up a dummy account and use this to collect switching bonuses. I set up a Starling account for this purpose – just make sure that you’re fulfilling the T&C’s of the switch (for example some banks require several active direct debits).
What does FSCS stand for?
FSCS stand for Financial Services Compensation Scheme. The FSCS protects savers and compensates up to £85,000 if their chosen bank fails.
Make your bank work for you
Banks are constantly looking for new ways to encourage us to switch to them so you can expect them to keep adding new features like cashback and rewards. Whether you decide to switch banks or not it’s important to take a look at what your bank are offering that you might not have been utilising such as:
- Cashback offers
- Access to savings accounts
- Overdraft facilities
- Easy to use internet or mobile banking
I’m very familiar with the features that my bank offers, I regularly get cashback on my spending, I have access to a market-leading savings account and I know exactly how to move money or freeze my card if I need to.
Are you thinking of switching banks for the cash incentive? Having completed two switches this year I’m a big fan of 7-day bank switching! If you have any questions about the process or incentives please do ask them in the comments below and I’ll do my best to answer them.
switch banks for money