How to Make Free Cash By Switching Your Bank Account
Most people stay with the same bank for years, even if the service is average and the interest rate on their savings is basically zero. Banks know this, which is why they sometimes offer free cash to get you to move.
You can get paid hundreds of pounds just by moving your current account from one bank to another. It sounds like a trick, but it is completely legal and takes very little effort.
Here is how it works.
1. Use the Current Account Switch Service
You do not need to call your old bank, tell them off, or sort out your standing orders one by one. The UK has a free system called the Current Account Switch Service.
When you apply for a new account with a bank running a cash offer, you just tick the box to use the switch service. They handle everything. They close your old account, move your balance, and automatically transfer all your direct debits and payees over within seven working days.
2. Check the rules before you switch
Banks do not just hand out free money for nothing. They always have a few basic rules you need to tick off to get the cash:
• You usually have to use the official switch service.
• You might need to deposit a certain amount of money each month (like £1,500, which can just be your wages going in and coming straight back out).
• You often have to set up at least two active direct debits.
• You usually cannot have held an account with that specific bank group recently.
3. Will it wreck your credit score?
Switching bank accounts leaves a footprint on your credit file, but doing it once or twice a year makes very little difference. If you are about to apply for a massive mortgage in the next month, hold off. Otherwise, it is fine.
4. Keep a burner account handy
If you want to keep your main bank account safe and tidy, a lot of people set up a separate "burner" bank account specifically for switching. That way, you can bounce it around to different banks whenever a new cash offer pops up without messing up your main bills.
Find an offer → Check the rules → Use the 7-day switch → Collect your cash
The bottom line
Making extra money usually takes hard work or overtime. Switching your bank account takes about ten minutes of form-filling to get a free cash bonus straight into your pocket.