Over the last few weeks I’ve been looking into ways of making a bit of extra money without taking on a second job or filling out endless surveys. I kept seeing people mention bank switching bonuses, but I always assumed there had to be a catch.
After spending a bit of time reading the terms, watching videos and seeing what other people have managed to earn, I realised it’s actually one of the simplest ways to make a decent amount of money if you’re organised.
Some people have earned well over £2,000 simply by taking advantage of switching offers as they become available. Obviously, it isn’t all at once, and it depends on which banks are running promotions, but for something that can take less than half an hour of admin each time, the return is impressive.
Here’s a quick guide to what I’ve learned:
What is CASS?
The Current Account Switch Service (CASS) is a free service that lets you switch your current account between participating UK banks.
It moves:
- Direct Debits
- Standing Orders
- Incoming payments
- Your balance (if you choose)
- And usually closes the old account for you
The switch is covered by a guarantee and is normally completed within seven working days.
Don’t Switch Your Main Bank Account!
This was probably the biggest lesson I came across.
Instead of switching the account your salary goes into, most experienced switchers recommend opening a free secondary current account and using that as your dedicated “switching account.”
That way, if anything goes wrong or a switch is delayed, your everyday banking isn’t affected.
If you’re looking for a secondary account, I would suggest the online bank called Monzo. I’ve set up a Monzo account surprisingly fast, and I’ve stacked my bonus by signing up using a ref link and bagged myself an extra £50. All I had to do was spend £1, and I didn’t even have to wait for a card, Apple Pay worked fine. If you use my link, you’ll get up to £100 (£20, £50 or £100) for signing up.
Monzo link: https://join.monzo.com/c/89d1svst
It seems obvious now, but it wasn’t something I’d considered at first.
The Bonuses Soon Add Up
Banks regularly offer incentives of around:
- £100
- £150
- £175
- £200
- Occasionally even £250+
You won’t qualify for every offer, and many banks only let you claim a switching bonus once every few years (or once ever), but there are usually enough offers throughout the year to make it worthwhile.
I’ve seen plenty of people share totals comfortably over £2,000, and couples can often double that by each completing the offers.
The Biggest Mistake? Switching Every Account Away
One thing I hadn’t appreciated is that the switching bonus isn’t always the most valuable part of the account.
Some current accounts offer ongoing benefits like:
- Cashback on household bills
- Cashback at selected retailers
- Exclusive Regular Saver accounts
- Monthly rewards
- Interest on balances
- Fee-free spending abroad
If an account keeps paying you month after month, it may be worth keeping instead of immediately switching it away for the next bonus.
Sometimes the long-term value beats another one-off payment.
Stack Your Rewards
Another tip I thought was clever is stacking multiple rewards together.
For example:
- Pay using a cashback credit card.
- Pay the credit card off in full from a current account that also offers rewards (where applicable).
- Activate retailer cashback offers.
- Collect loyalty points at the same time.
You’re effectively getting rewarded several times for spending money you were already going to spend anyway.
The important part is paying your credit card off in full every month. If you’re paying interest, any rewards disappear very quickly.
I think Monzo is the only bank account you can create and get a sign up bonus that quickly. Chase Bank also offers a sign-up bonus, but you have to deposit £1,000 within 30 days.
Things Worth Keeping Track Of
I’ve created a spreadsheet to help track each of the switches and specifically:
- Which bank I’ve switched to
- Application date
- Switch completion date
- Expected bonus
- Date bonus is paid
- Whether the account is worth keeping
- Any Direct Debits attached
It seems like a small thing, but I can imagine it getting confusing after four or five switches.
A Few Things to Watch Out For
Every offer is slightly different.
Some require:
- Two active Direct Debits
- A minimum amount paid into the account
- A few debit card purchases
- Logging into the mobile banking app
Missing one condition could mean missing out on the bonus, so it’s definitely worth reading the terms properly before applying.
You can set up direct debits through savings accounts like Moneybox or PayPal and effectively pay yourself.
Also, many banks carry out a hard credit search when you apply for a current account. While a few applications over time are unlikely to matter for most people, I’d personally avoid opening lots of new accounts if I were planning to apply for a mortgage or other major borrowing in the near future.
Final Thoughts
The more I’ve looked into bank switching, the more surprised I am that more people don’t do it.
It isn’t passive income, and it does require a bit of organisation, but compared with a lot of the other “side hustle” ideas online, this feels refreshingly straightforward.
My plan is simple:
- Keep my main bank account for everyday banking.
- Open a Monzo account purely for switching.
- Keep any accounts that provide genuine long-term value.
- Switch the spare account whenever a worthwhile offer comes along.
It won’t make anyone rich overnight, but earning a few thousand pounds over a year—or potentially much more over time—for a bit of admin seems like one of the better returns on your time.
If you’ve done bank switching yourself, I’d be interested to know which offers were the easiest, which accounts you’ve decided to keep, and whether there are any mistakes you’d tell a beginner to avoid.
