Switching banks is no longer a hassle — it’s a smart way to earn cash rewards and take advantage of better services. Many banks offer sign-up bonuses to attract new customers, which can be a great opportunity to boost your finances without much effort. Whether you’re seeking a more rewarding current account, lower fees, or just want to make some quick cash, here’s a step-by-step guide on how to switch banks and earn money.
Why Should You Switch Banks?
Switching banks isn’t just about grabbing a quick bonus — although that’s a big perk! There are several reasons why you might want to consider making the move:
- Sign-up Bonuses: Many banks offer cash rewards for switching, which can range from £100 to £300 or even more.
- Better Interest Rates: Get more from your savings or earn rewards on your spending with improved interest rates.
- Lower Fees: Some banks charge fewer fees for things like overdrafts, transfers, and ATM withdrawals.
- Better Service: Many challenger banks and digital banks now offer better apps, faster transfers, and round-the-clock customer service.
Step-by-Step Guide to Switch Banks
1. Research the Best Bank Offers
Start by researching current offers. Many banks have special promotions for new customers that include cash bonuses. These bonuses usually require you to complete certain actions, like depositing a minimum amount or setting up direct debits.
UK Example: First Direct offers £175 for switching to their 1st Account, and HSBC often provides a £200 bonus for switching to their Advance account.
U.S. Example: Chase Bank frequently offers bonuses of $300 or more when you switch to their checking accounts.
Be sure to read the small print — each offer comes with its own set of requirements and terms.
2. Check Eligibility Requirements
Before you apply, make sure you’re eligible for the bonus. Common requirements include:
- Minimum deposits: You may need to deposit a certain amount of money within a set timeframe (usually 30 to 90 days).
- Direct debits: Some bonuses require you to set up at least two direct debits or automatic payments from the new account.
- Exclusivity: Most banks only offer sign-up bonuses to new customers. If you’ve held an account with the bank recently, you may not qualify.
Ensure you meet the requirements to avoid missing out on the reward.
3. Open the New Account
Once you’ve chosen the bank and checked your eligibility, go ahead and apply. Most banks allow you to apply online, and the process typically takes only a few minutes.
You’ll need to provide personal information, such as:
- Proof of identity (passport, driving license)
- Proof of address (utility bill, bank statement)
- Financial details (employment and income information)
4. Use the Current Account Bank Switch Service (UK) or Automatic Transfers (U.S.)
In the UK, the Current Account Switch Service (CASS) makes switching banks quick and easy. It’s a free service that transfers all your direct debits, standing orders, and incoming payments to your new account. The process takes about seven working days, and your old account will be closed automatically.
In the U.S., some banks offer similar automatic transfer services for setting up bill payments and direct deposits. If not, you’ll need to update any automatic payments manually.
5. Meet the Spending or Deposit Requirements
Once your new account is open, you’ll need to meet the specific bonus criteria to qualify for the reward. This usually involves:
- Depositing a set amount within 30-90 days
- Setting up direct debits or recurring payments
- Making a certain number of debit card transactions
Pro Tip: Use the new account for everyday expenses like groceries, bills, or online subscriptions to quickly hit the required thresholds without overspending.
6. Claim Your Bonus
After you’ve fulfilled the requirements, the bonus will usually be credited to your account within a set period (often 30 days). Keep an eye on your account to make sure the reward appears, and contact the bank if you have any issues.
Best Bank Switch Bonuses in the UK
Here are some of the best switching offers available in the UK right now:
- HSBC Advance Account: Earn £200 when you switch to HSBC, deposit at least £1,500 within 60 days, and register for mobile or online banking.
- First Direct 1st Account: Switch using CASS, deposit £1,000 in the first three months, and receive a £175 bonus.
- Nationwide FlexDirect: Offers £200 when you complete a full switch, including at least two direct debits.
Best Bank Switch Bonuses in the U.S.
Here are some of the top bank bonuses in the U.S. this month:
- Chase Total Checking®: Receive $300 when you open a new checking account and set up direct deposits totaling $500 or more within 90 days.
- Citibank Checking: Earn up to $2,000 depending on the amount you deposit in the first 20 days. The bonus starts at $200 for a $10,000 deposit.
- PNC Virtual Wallet®: Earn between $200 and $400, depending on the type of account and deposits you make within 60 days.
How to Maximize Bank Switch Bonuses
- Switch Only When Necessary: Don’t open accounts just for the sake of the bonus. Only switch when it aligns with your banking needs.
- Track Your Requirements: Keep a checklist of what you need to do to qualify for each bonus, such as setting up direct debits or reaching minimum deposits.
- Combine Bonuses: Some banks may offer referral bonuses on top of sign-up bonuses. If you know someone already banking with the provider, ask if they can refer you to stack your rewards.
Final Thoughts
Switching banks has never been easier, and the potential to earn money makes it a no-brainer. Whether you’re after better service, fewer fees, or just a quick cash reward, take advantage of bank sign-up bonuses to make your money work harder for you.
Ready to switch and earn? Apply now. These offers won’t last forever, so act fast!
Switching banks can seem like a big step, but with the right strategy, you can turn the move into an easy way to boost your bank balance.