MoneyMagpie Editor and financial expert Vicky Parry explains everything you need to know about switching bank accounts
UK banks are still offering up to £250 in cash just to persuade you to switch current accounts – but is it really worth the admin?
Let me be honest with you, switching your bank account for a cash bonus can be a proper faff.
There are forms, conditions, deadlines and that nagging worry that something will go wrong with your bills. It’s why most people never bother — and banks know it.
But here’s the thing. In 2026, UK banks are still offering £150 to £250 or more in cash just to tempt you to move your current account.
So the big question is: is it worth the admin? For some people, absolutely. For others, not a chance — and that’s fine too. Here’s what you need to know before you even think about switching.
What is a bank switching bonus?
A bank switching bonus is a cash incentive paid by banks when you move your current account to them.
To qualify, you normally have to use the Current Account Switch Service (CASS) — the official switching system backed by UK banks.
CASS:
- Moves your balance automatically
- Transfers direct debits and standing orders
- Redirects incoming payments like your salary or benefits
- Completes the switch within seven working days
- Guarantees compensation if something goes wrong
Banks offer these bonuses because once people switch everything over, most stay put.
Which banks are paying you to switch in 2026?
Switching deals change regularly and can be pulled with little notice, so always check the bank’s own website before applying.
That said, these are the main banks offering cash incentives in 2026:
- Lloyds Bank – bonuses of up to around £250, usually linked to a full switch and a minimum pay-in. Some accounts come with monthly fees.
- Santander – typically around £200, often requiring two active direct debits and a minimum monthly deposit.
- Nationwide – usually offers £150 to £175, with eligibility rules that can exclude recent switchers.
- First Direct – often pays around £175, with no monthly fee and a strong reputation for customer service.
- TSB – bonuses generally sit between £150 and £180, but often involve extra steps such as debit card use.
As a rule, the bigger the bonus, the more boxes you’ll need to tick.
Why bank switching puts so many people off
I won’t sugar-coat it — you are being paid because this isn’t effortless.
Here’s why many people decide switching isn’t worth it:
- You must complete a full switch, not just open a new account
- Most banks require two active direct debits
- There’s usually a minimum monthly pay-in, even if you move the money straight back out
- Deadlines matter — miss one and the bonus disappears
- Some accounts charge monthly fees if conditions aren’t met
If admin stresses you out or you know you won’t read the small print carefully, switching can quickly feel more annoying than rewarding.
The pros and cons — at a glance
Pros
- Cash rewards that often beat savings interest
- Fully legal, regulated and widely used in the UK
- A good excuse to leave a poor-value bank
- CASS protection if anything goes wrong
Cons
- Admin-heavy and deadline-driven
- Some accounts come with monthly fees
- Switching repeatedly can affect your credit score
- Bonuses aren’t guaranteed if you miss conditions
How to make switching less painful
If you do decide to go for it, these tips can make the process much smoother:
- Set up two small direct debits you control (charity donations or subscriptions work well)
- Move money in and out on the same day to meet pay-in rules
- Screenshot confirmation pages and emails
- Set calendar reminders for key dates
- Use a secondary account, not the one your salary depends on
This isn’t something to do while distracted. Treat it like a short-term money project.
Your biggest questions, answered
Is switching banks legal? Yes. These offers are openly advertised and regulated.
Can I switch more than once? Yes, but banks usually won’t pay you again if you’ve already had a bonus from them.
Will switching affect my credit score? Possibly in the short term, especially if you do it frequently.
Do I pay tax on the bonus? Usually no, unless HMRC considers it regular income, which is uncommon.
MoneyMagpie’s Verdict
Switching banks for a cash bonus in 2026 isn’t “free money” — but it is one of the few ways left to earn £200-plus without needing special skills.
If you’re organised, patient and happy to follow instructions, it can be well worth the hassle. If not, don’t beat yourself up. There are plenty of other ways to save money that don’t involve changing banks at all.
Sometimes, the smartest decision is knowing when something just isn’t for you.
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