Bank Account Switching Incentives

How the switch works

Automated switching services move payments, direct debits and standing orders, and redirect incoming payments for a period.

The old account is usually closed as part of a full switch, which is what most incentives require.

The process typically completes within about a week, with the new bank coordinating.

The conditions to read

A minimum monthly deposit, which frequently must be paid in from outside the bank.

A number of direct debits that must transfer with the account.

Use of the automated switching service rather than opening an account manually.

A holding period before the incentive is paid and sometimes a further period before you can leave.

Exclusion of customers who have received an incentive from the same group previously, which is the condition that catches repeat switchers.

The account behind the offer

Some incentives sit on accounts with monthly fees, which erode the bonus over a year.

Overdraft rates vary widely, and if you use an overdraft that matters far more than a one-off payment.

Interest on credit balances, linked savings rates and cashback on bills differ and can be worth more annually than the incentive.

App quality and branch access matter if you actually use them.

The credit file consideration

Opening an account usually involves a credit check, which leaves a record.

A few switches over time are unremarkable. Several in quick succession, particularly around a mortgage application, are worth avoiding.

Practical approach

Keep a small account you do not switch, so that a problem during a transfer does not leave you without access to money.

Screenshot the terms when you apply, since offers are withdrawn and conditions change.

Note the qualifying dates and the payment date in a calendar, and chase if the payment does not arrive.