Have you heard about bank switch bonuses? Let’s go back, when was the last time you switched your bank? Maybe you originally set up an account with your particular institution way back when you were a child and have just stuck with them. It could be that you moved to the building society where you got your mortgage. You might bank with a company that has a branch in your town, which makes a lot of sense. However, loyalty is costing you money.
Did you know that banks will pay you to switch to them? There are often several decent bank switch bonuses available for people, just like you, to take advantage of. Simply put, you switch your account and get some money deposited into your new account for a new customer. This is how I made over £1000 in one year by getting bank switch bonuses. Let’s dive in and see how I did it, along with why you should be doing it too!
Different Banks, Different Bonuses
The first thing to remember is that these bank switch bonuses are never usually around for very long. Institutions will put them live for a month or two, to entice new customers to join them. The idea is that over the life of the customer, the bank will make money from them, so giving them a little incentive to join is worthwhile.
Different banks have different bonuses as well as different terms and conditions. There are usually a few hoops you have to jump through to be eligible for the bank switch bonuses. This could be to deposit an amount of money within a certain timescale after switching. You might come across offers where you have to have active direct debits on your account before you switch.
There might also be banks that are linked, offering similar bank switch bonuses. You can’t necessarily get both, as in the terms it could state this type of thing. Although I did find that even though the NatWest, RBS and Ulster banks are linked and it stated in the terms that you couldn’t get more than one, I was able to get all three bonuses. It’s worth a go!
These T&Cs can be super simple or sometimes more complex. However, they can be worked through and you can soon get your hands on that extra cash.
My Journey Of Bank Switch Bonuses
I first heard about bank switch bonuses, like many have, through Martin Lewis. It was always something I thought was a good idea but I didn’t want to switch my main bank because it is all set up exactly how I want it with different sub-accounts and such. With the most common thing that you have to do is deposit a certain amount of money, I thought that only means put it into an account. You can then withdraw straight away. So in December 2022, I set up a new bank account with TSB, clicking through Quidco where there was £33 cashback on offer. So already I was making money!
After a couple of months of personal stuff going on, I decided to use this TSB account and switch it. In order to make sure I could keep on top of everything I made a dedicated folder for paperwork and used an old wallet for bank cards. I also put £5 into the account so I would know when the switch had completed as the £5 would have shifted into the new account. I switched banks multiple times during 2023, collecting bank switch bonuses. It went something like this.
Bank Switch Bonuses
- Opened TSB account & got £33 cashback via Quidco
- Switched to First Direct for £175 (+ £40 cashback via Quidco)
- Switched to NatWest for £200
- Switched to Lloyds for £150
- Switched to RBS for £200
- Switched to Ulster for £200
- Switched to Nationwide for £200
- Switched to Barclays for £175
- Total: £1373
There was also a HSBC offer towards the end of the year which gives you £205 if you complete all the steps. £125 of this will be paid before the end of the year and the other £80 should be paid in May 2024. The offer wasn’t to switch, it was to open a new account. There were a lot of terms and conditions to get familiar with and this was perhaps the most difficult of all, but still fairly simple to follow.
If I look at the money that will be paid into my account and I will physically have had by the end of the year, that equals £1498. Two pounds shy of £1500 for simply switching (& opening) bank accounts. My wife has seen how good it is and I’ve started helping her through the bank switching process. She is now two switches in and has earned £375. How could that extra money help you in your life?
Things To Consider
There are, of course, things to think about before you start switching banks. You need to ensure that you meet the criteria (or can meet it!) before commencing on a switch. Don’t spend the money before you have it and don’t rely on getting the cashback from places like Quidco as sometimes it doesn’t track or something might go wrong.
If you are close to a big financial event, such as taking out a mortgage, this is probably not the right time for you to start looking at bank switch bonuses. Switching banks does impact your credit score slightly, so if your credit score is something you are working on ahead of getting a mortgage (for example), you don’t want to be opening multiple bank accounts and knocking points off your score.
Something else you should consider is keeping on top of all the paperwork and information you are getting. Do you have the capacity to take this on? There are always letters coming through the post and new passwords to remember or apps to log into. A spreadsheet is a wonderful way to keep track of everything, along with a folder for paperwork.
Many people do this lots of times a year so it is possible to do and stay on top of it. The money is a great addition to your income and right now, in difficult times when you might be struggling to pay bills or make ends meet because of changes in your job, these bank switch bonuses can be a real lifesaver.
