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Switching bank accounts could earn you £200: so should you make the change?

Updated 26 January 2023

2min read

Craig Rickman
Senior Content Writer

Cash bonuses are having a significant impact on the number of people switching their current bank accounts in the UK, with more and more individuals looking for the best deals and incentives when it comes to managing their money. 

Switching bank accounts could earn you £200: so should you make the change?

According to recent data, the number of people switching their current accounts has risen dramatically in the past few years, with many banks offering cash bonuses as a way to entice new customers.

These bonuses, which can range from £50 to £200, are offered to tempt customers to switch their accounts to a new bank or building society. 

The surge in current account switches

The trend of switching bank accounts has been on the rise in recent years, as more and more consumers are becoming aware of the benefits of shopping around for the best deals and incentives.

With the current account market becoming increasingly competitive, banks and building societies are seeking to stand out from the crowd and attract new customers. 

While cash bonuses are clearly a draw, they are not the only factor that you should consider when switching your current account.

Other important ones include account fees, interest rates, and the availability of online banking and mobile apps. 

However, a cash bonus might swing the balance for many of you, especially if you’re looking for an easy way to boost your savings or pay off debt. In addition, switching your accounts can bring several other benefits such as free overdrafts, free travel insurance, or even free mobile phone insurance. 

The Current Account Switch Service

Switching bank accounts may seem a daunting task, but it doesn't have to be.

The Current Account Switch Service makes it simple and straightforward, with most switches completed within seven working days. You can even switch an account that’s overdrawn. 

The Service takes care of all the work involved, including transferring direct debits and standing orders, and closing the old account.

Plus, if anything goes wrong during the switch, the Current Account Switch Guarantee ensures that any payments accidentally made to or from the old account are automatically redirected to the new one. 

Are there any disadvantages of making the switch?

As always, there are a couple of disadvantages for you consider.

Your credit score might be affected if you switch regularly, as lenders like to see a stable banking history.

In addition, you would need to update your bank accounts details with your employer and take the time to set up and get used to a new online banking app.  

However, if you’ve decided a switch is right for you, these drawbacks are unlikely to put you off. 

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About the author
Craig Rickman is senior content writer at unbiased.co.uk. He has been writing about personal finance and wealth management since 2016, including four years as a journalist at the Financial Times Group. Prior to this, Craig spent eight years working as a regulated financial adviser. He holds the CII level 4 Diploma in Financial Planning.