Get Money For Switching Banks – The Ultimate Guide

Bank Switching is one of the easiest ways to get a quick cash injection with minimal effort and in this post I’m going to show you exactly how to get money from switching banks!

I have made over £1200 in the past two years from taking advantage of bank switch offers. And with each switch taking less than an hour total time investment, this is a crazy good side hustle!

Now, it does come with some T&Cs and you won’t be eligible for every single switch you see. But keeping an eye on any deals that may pop up and taking advantage when you can is so worth it!

Take it from someone who avoided doing them because it looked like “too much effort”. Once I got over myself and actually looked into it, I made £750 in less than a month from this easy side hustle.

So you may be asking, what actually is Bank Switching?

Bank switching is where you change your current bank account using the Current Account Switch Service (CASS) to a new account with a different bank or building society. Why bother? Often banks will offer incentives to get you to switch your bank account to them. These are usually cash incentives and sometimes come with other perks too.

Like I said in the intro, since my first bank switch in 2023, I’ve switched banks 7 different times and been paid out £1285 in switch incentives. Plus, I got a few extra perks, like a Regular Saver account with higher interest rates, one netted me an additional £133 in interest.

How does it work?

The CASS makes switching bank accounts hassle free and extremely easy. This is a free service which after instructed will close your old bank account and transfer everything over (including direct debits, standing orders and your salary) for you. You simply have to find the offer you want to complete, follow the application steps with the new bank, instruct CASS to close your old account and complete any additional requirements needed for the bonus!

Usually there are some steps you have to complete once the switch has completed in order to qualify for the incentive. There is usually a pay in minimum balance, a certain number of direct debits needed in the switch and sometimes a required amount of transactions on your new debit card. The steps differs from offer to offer so make sure you read the instructions carefully so you don’t miss out on the incentive.

Do I have to use CASS?

Yes! You have to complete the switch through the official switch service to be eligible for the incentive. This process is super easy and takes all the pressure off you as they do everything for you. This makes moving to your new bank account a smooth transition. The switch service will transfer everything from your old bank account to your new current account. Financial institutions communicate with each other and use your personal information to switch you over.

This means that your everyday banking will not be disrupted as you will have immediate access to your new bank details and CASS will sort the rest out for you. You will have access to your new account via the banks mobile app or online banking. Whilst your regular payments won’t be affected when you use the CASS service and any remaining balance will be transferred across to you, if you’re worried about disruption check out the next point.

Wait, do I have to loose my current account?

So whilst the offer will state you have to switch your main current account, it is possible to complete a bank switch with a “dummy” account. Essentially an account you’ve either already got that you don’t really use or an account you open for the main purpose of switching it. This is a good idea if you don’t want to move your salary, any of your main bills or move from your preferred primary bank. Just make sure the dummy account has the required number of direct debits attached to it.

Switch offers will often come with requirements such as a minimum pay in. You can just transfer money through the account to meet this requirement. 

There are a bunch of fintech banks out there that make perfect dummy accounts to switch. These are super easy to set up, require minimal paperwork and are often ready to go within a couple hours. Usually you just need your email address, phone number and ID to open one.

Looking for a good “dummy” account? You could have a Monzo account up and running within minutes PLUS get up to £50 for signing up and making a card purchase! More info here.

Can anyone do it?

Each bank or building society will have different eligibility requirements. Essentially if you qualify for the account you can take advantage of the switch service. To qualify for the switch incentive there may be additional T&Cs, such as you can’t have received a bonus for X amount of years or be an account holder with a sister bank. However, some of the banking groups will let you complete switches with multiple of the banks in their group. You could even double dip for rewards by leveraging a joint account. 

Can I do multiple switches?

You can do as many switches as you are eligible for! When I first found this side hustle, I completed 4 bank switches in one month, earning £750 total.

Plus, often the switches will reset themselves so you can take advantage of the same offer again a couple of years later. And some let you switch into an existing account to get the bonus which is great!

Does it affect your credit score?

In theory, yes it can affect your credit score because some banks will run a hard credit check on you as part of the application process. But in reality the extent of the effect will differ person to person. Personally, from the 4 back to back switches I did, my credit score only dropped 4 points. This is something you’ll have to evaluate and decide if the incentive is worth the risk.

The new hard searches might show up on your credit report but the exact impact will vary. 

Haven’t checked your credit score before? Why not hack the system and get paid to check your score! 💸

Is this safe to do?

Yes, Bank Switching is completely safe to do. So long as you are switching to a legit bank you shouldn’t face any issues. Banks in the UK are typically covered by FSCS, which insures your money up to £85k in any one account. These banks are regulated and kept to a high standard, so switching banks is as risky as opening an account the traditional way.

It is typically the traditional brick and mortar banks that are offering these switch incentives so they are usually well-known high street banks which reduces the risk. Many of them still have physical branches where you can get further information on the switch deals and get help from a human.

Will I loose any money I have in the account? Or my access?

You won’t loose any money in the account as they simply transfer everything over. However, you may loose access for a day or two as they close your old account and move everything to the new one. In the switch process you get the chance to set a date for the switch to happen. This way you can plan around potentially not having access. Plus pick a date away from when your bills come out to make sure everything is covered. 

However, this is not a problem if you are switching a dummy account as you’re actual main current account will remain unaffected. If you are switching your primary bank account make sure you have enough cash incase you loose access for a short period of time. 

Will I have to pay any fees?

It depends on the account you are switching too but the actually switch costs nothing. However, some accounts do come with a monthly fee so you would need to factor this into the incentive. Usually the types of accounts that have fees are premium accounts that come with better promotional offers. Sometimes this is freebies, like statement credits or subscription services and sometimes it’s a higher cash bonus for opening the account. 

I have an overdraft, can I still get the switch bonus?

This completely depends on the bank you are switching to and whether they will offer you the same amount in an overdraft with them. However, this is not unheard of so don’t completely write off this side hustle if you do have an overdraft balance. There might be an overdraft fee to switch the balance over. You would need to check the T&Cs of the switch offer you are looking to take advantage of. 

How do I find a Bank Switch offer?

The best place to find these type of switch offers is to look on MoneySavingExpert. They have an updated list of all the current switch offers on the market. It might also be worth checking a third party website like TopCashback to see if you could get even more money out of the switch. Most of these banks are now primarily online banks so have step-by-step guide on their website to talk you through the switch and the incentive requirements.  

There we go, everything you need to know about bank switching! Hopefully you’re now ready to go and test out this easy side hustle. If you have more questions, drop them in the comments below.

Have you ever done a bank switch before? Are you going to do one of the offers available right now?

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