How to Switch Bank Accounts and Get a Cash Bonus

When you switch bank accounts in the UK via the Current Account Switch Service, you're not just upgrading your current account — many banks will pay you £100–£175 to make the move. This guide walks you through the switching process, shows you how to claim that cash bonus, and explains what to do with it once it lands.

The switch itself is surprisingly stress-free: your new bank takes care of everything. All your direct debits, standing orders, and regular payments move automatically. No missed bills. No chaos. The whole thing takes exactly 7 working days. And yes, you genuinely get paid for switching.

How the Current Account Switch Service Works

The Current Account Switch Service (CASS) is a free, government-backed scheme that guarantees a smooth account switch. Here's what actually happens:

Day 1: You choose your new bank and request a switch through them. Your new bank immediately becomes your "receiving bank." You give them your old account details.

Days 2–7: Behind the scenes, CASS does the hard work. It identifies all the payments coming into and out of your old account over the past 13 months. Every direct debit — utilities, mortgage, subscriptions, insurance — gets transferred to your new account automatically. Standing orders follow the same path.

Day 7: Your old account closes (or stays open, if you want to keep it as a backup). Your new account is fully operational with all your payments rerouted.

Your old bank must refund any duplicate payments if something goes wrong. That safety net is built into CASS. You're covered.

One small detail: CASS redirects the payment instructions, not your balance. You need to manually transfer any credit balance left in your old account. Most people do this on day 7.

Which Banks Offer the Best Switching Bonuses Right Now?

Switching bonuses change regularly as banks compete for customers. At the time of writing, the market typically looks like this:

Premium tier (£150–£175): These are usually offered by banks pushing hard for market share or launching new features. Often bundled with conditions: maintain a minimum balance (usually £1,000–£2,000), set up a salary payment, or use the debit card 10+ times per month.

Standard tier (£100–£150): The most common bracket. Many high-street banks and online banks offer bonuses in this range. Conditions tend to be lighter: often just switching via CASS and maintaining the account for a set period (typically 12 months).

No bonus tier: Some banks don't offer bonuses. They're betting you'll stay for features, not cash. That's fine — switch for the better current account, not the money.

Pro tip: Bonuses are usually paid within 30–60 days of your switch completing. Check the small print. Some banks pay on day 7; others wait until you've hit their conditions (e.g., 10 debit card transactions). Plan accordingly.

When choosing a bank, consider what actually matters to you: interest on savings, low fees and charges, cashback, or strong app features. The bonus is the cherry on top, not the whole reason.

The Step-by-Step Process: How to Get Your Cash

Here's the exact flow from decision to bonus in your pocket:

Step 1: Choose your new bank (days 0–1) Decide what matters to you. Is it better interest on savings? Lower charges? Mobile app features? Once you've narrowed it to 2–3 banks, check their switching bonus. Compare current accounts online or go direct to the bank's website.

Step 2: Check the conditions (day 1) Read the terms. How much do you need to deposit? How many transactions? How long do you keep the account open? Most bonuses require you to stay for 12 months; breaking the rules early forfeits the cash. That's not a dealbreaker — just know it upfront.

Step 3: Request the switch through your new bank (day 1) Visit the new bank online or in branch. Tell them you want to switch via CASS. They'll ask for your old account number and sort code. That's it. They handle everything else.

Step 4: Wait for the redirect (days 2–7) During these 5 working days, CASS works behind the scenes. Check your new account around day 5 — you should see payments arriving in their new location. No action needed from you. If something's wrong, CASS has a dispute resolution team.

Step 5: Move your balance (day 7) Your new account is now live. If you had money sitting in your old account, transfer it to the new one. Most people do this immediately to avoid confusion.

Step 6: Close the old account (day 8+) Once you've confirmed everything's working, ask your old bank to close the account. Or keep it open as a backup if you prefer. Some people maintain two accounts for resilience — if you ever get locked out of your new account, you have somewhere to land. If you keep it open, just make sure it doesn't have a monthly fee, or the fee will eat into your bonus savings.

Step 7: Claim your bonus (days 30–60) Your new bank pays the bonus. Most credit it automatically once you've hit the conditions. If not, email support and ask where it is. It usually arrives within 60 days, but check the terms for your specific bank.

Common hiccup: If you miss the conditions (e.g., didn't make 10 debit card transactions), you forfeit the bonus. Read the small print. It's tedious, but it's the difference between free money and nothing.

Common Switching Mistakes (and How to Avoid Them)

Mistake 1: Forgetting to move standing orders manually CASS handles direct debits automatically, but standing orders — the payments you set up manually to a person or organisation — sometimes need manual intervention. Check your old account on day 8 and confirm every standing order has moved. Takes 10 minutes. Saves a headache.

Mistake 2: Missing the bonus conditions Most bonuses require you to use your account. If the condition is "10 debit card transactions per month," you need to hit that every month, not just once. Miss it, and you don't get paid. Set a phone reminder in month 1 to check your progress.

Mistake 3: Closing your old account too early Some people get impatient and close their old account on day 8. If a payment arrives late (sometimes they do, depending on the institution), you've got nowhere to catch it. Wait 2–4 weeks before closing. Better safe.

Mistake 4: Not checking whether you qualify for the bonus Some bonuses come with income thresholds or employment requirements. Read the small print. "Existing customers" sometimes don't qualify (even if you closed an account there 5 years ago). Some bonuses are only for first-time switchers. If you don't meet the criteria, you won't get paid, no matter how many transactions you make.

Mistake 5: Switching for a bonus you don't actually want the account for You switch banks for the cash, but the account is rubbish — poor app, expensive overdrafts, no savings interest. You're locked in for 12 months to keep the bonus. Only switch if the account itself is an upgrade. The bonus is the cherry on top, not the whole reason.

To avoid these, spend 10 minutes reading the full terms before you switch. Tedious, but much cheaper than losing £150.

What to Do With Your Switching Bonus

You've got £100–£175 landing in your account. Now what?

Option 1: Emergency fund If you don't have 3–6 months of expenses saved, add the bonus to your emergency pot. Boring, but it's the financial equivalent of patching the roof before it leaks. Move it to a high-interest savings account so it grows while you save.

Option 2: Pay down debt Carrying credit card debt at 18–22% interest? That bonus is earning you a guaranteed 18–22% return just by paying it off. The maths is clear: bonus → credit card debt → instant "return."

Option 3: Invest for the long term If you've got an emergency fund and no high-interest debt, invest the bonus. A stocks ISA is tax-free. Even £175 at 7% real return over 30 years grows to roughly £1,200. Small seed, big tree.

Option 4: Treat yourself (smartly) You're allowed to enjoy some of it. If you decide to spend £50 on something that actually improves your life, that's fine. But couple it with one of the above — save £75, enjoy £50, invest £25.

For more ideas on how to allocate windfall money — bonuses, refunds, gifts — check out our guide to smart ways to use unexpected cash. The principles are the same.

Many people combine these. £75 to emergency fund, £75 to invest, nothing spent. The point is: treat a switching bonus like a bonus, not like salary. You got it for free; don't let it disappear into your current account like it was never there.

Once you're in your new account with a bonus, look for other cashback credit cards or loyalty programs you can layer on top. Switching bonuses are one piece; bundling them with cashback, loyalty, and smart subscriptions creates a real money-saving system. Our money-saving apps guide covers tools that help you track and optimise all of this.

Frequently Asked Questions

Q: Is the switch actually free? A: Yes. The Current Account Switch Service is free by law. Your old bank can't charge you to close, and your new bank can't charge you to switch. If anyone quotes you a fee, you're being scammed.

Q: What if I don't get my bonus? A: Check the terms first. Did you hit all the conditions? If yes, email the bank's support team with proof (screenshots of transactions, confirmation emails, etc.). They usually resolve bonus disputes within 10 business days. If they're being evasive, escalate to the Financial Conduct Authority (FCA).

Q: Can I switch back to my old bank and get another bonus? A: Sometimes. If your old bank offers a bonus for switching back, you can claim it. But once you've switched away, you typically can't claim a switching bonus from them again for 12 months (or more). Check their terms. Trying to play musical chairs with bonuses sometimes works; usually it doesn't.

Q: How many times can I switch per year? A: Legally, unlimited. In practice, one switching bonus per bank per year, and many banks don't offer bonuses repeatedly. If you switch four times in 12 months, you might only get one bonus. Banks also have fraud filters; multiple switches can trigger them. Stick to one or two genuine switches per year.

Q: What happens to my old bank statements? A: They're yours. You can download them before you close the account, or ask your old bank to archive them. Most banks keep statements available online for 7 years after closure. Take copies of anything you might need for tax, mortgages, or reference.

Q: Do I need to keep my old account open after switching? A: No. Most people close it. But some people keep a backup account at their old bank for resilience — if you ever get locked out of your new account, you have somewhere to land. If you keep it open, just make sure it doesn't have a monthly fee, or the fee will eat into your bonus savings.

Q: Can I switch if I'm self-employed or have irregular income? A: Yes. The switch doesn't care how you get paid. Some bonus conditions mention "salary payments," but they usually mean any regular income. If the bonus requires a £2,000 minimum balance, that's based on your balance, not your income. You're fine.

Q: How do I know the switch is actually complete? A: Check your new account. All your direct debits should be showing. All your standing orders should be routed. Check for 3–4 days (some things take longer than others). If something's not there by day 10, contact your new bank. CASS allows 7 days, but some institutions are slower to redirect.

Should You Switch?

Switching isn't just about the bonus. It's about whether your current bank is still serving you. Interest on savings? Broken. Overdraft charges too high? Upgrade fees for nothing? These are reasons to switch independently.

The bonus is the financial nudge that makes it feel worth the hassle. And now you know the hassle is actually just 10 minutes of your time and then waiting.

If your current bank is charging you £10/month in fees and your new bank charges nothing, that's £120/year saved before the bonus even lands. Multiply that over a few years and the switching bonus looks very small compared to the actual savings.

So the real question isn't "Is the bonus worth switching for?" It's "Why aren't you already using an account that matches your actual needs?"

If you're unsure what your ideal account looks like, ask yourself:

• How often do I go overdrawn? (If regularly, pick an account with cheap overdrafts or good interest on savings.)
• Do I need cashback or rewards? (Some accounts bundle these.)
• Do I want a physical branch? (Online banks are cheaper but don't have branches.)
• How much interest do I need on my balance? (Varies wildly; check current rates.)

Once you know that, the bonus becomes a straightforward side effect of a sensible decision.