Banks compete hard for current account customers, and every so often one will simply pay you to move to them. The sums can be worth having, and the process is far less painful than people fear, thanks to a switching service that does most of the work.
How switching actually works
The Current Account Switch Service moves everything for you within seven working days: your balance, direct debits, standing orders and incoming payments. It even redirects any payments sent to your old account for years afterwards. You pick a date, the banks handle the rest, and there is no overlap or gap.
The hoops to clear
The bonus almost always comes with conditions. Common ones include:
- Paying in a minimum amount each month, often by salary.
- Setting up a number of direct debits.
- Staying for a minimum period before the bonus is safe.
- Using the bank's app to register or log in.
Miss a condition and the bonus may not arrive, so read the requirements before you start.
Is it worth it?
For an hour or two of admin, a switching bonus is one of the easier bits of money to earn, and it does not affect your credit standing in any harmful way. Some people switch repeatedly to collect bonus after bonus — perfectly legitimate, if you can keep track.
One caution
Do not chase a bonus into an account that charges a monthly fee you do not need, or that pays poor interest on your balance. Weigh the one-off bonus against the ongoing terms. A good switch pays you to move and then keeps serving you well afterwards.