The best offers for switching banks: get up to £200 free cash

Looking to move bank accounts? You can now bag as much as £200 for switching current accounts from two major banks

Not happy with your current account? Then it’s easy to switch bank accounts – and you can now bag as much as £200 from one major banks when you move your current account - and some also come with linked regular saving accounts paying up to 7% interest.

There used to be plenty of offers on the market for switching banks, but during the pandemic, most banks pulled these deals. 

However, bank switching offers are now coming back as lenders fight over new customers. 

The cash bonuses on offer for switching banks have returned to levels not seen for years. Right now you can pick up £200 just for switching your account. That's as close as you can come to picking up free money for almost no work. But - if you're looking to snap up the free cash, don't delay - these offers don't hang around along. 

The Current Account Switch Service (CASS) makes it quick and painless to switch banks to move current accounts as the banks are required to do the legwork and complete the switch within seven working days.

All you do is open a new current account and request a switch via CASS. The service will then close your old account and move all your money, direct debits and standing orders to your new account within seven days.  

Plus, for three years any money that is paid into your old bank account or tries to leave your old account will automatically be changed to your new account.

Still, it is important to remember that while these offers might look attractive you should only switch to an account that suits your needs as some of the accounts below also charge a monthly fee. You should always check the terms and conditions to make sure you qualify for the bonus before you start the switch process.

The best offers for switching banks on the market  

HSBC*: £200 free cash (plus 5% interest on its regular savers account)

If you’re new to HSBC, you can bag £200 for moving your current account to the HSBC Advance account*.

The account is free, but you will need a minimum of £1,500 paid into the account within 60 days of opening the account and should be switching over at least two direct debits.

The HSBC Advance account comes with some perks, which include access to exclusive savings rates as well as discounts at ASOS and Costa Coffee. The linked savings account has a 3% interest rate on cash up to £10,000, but only for months where you do not withdraw from it.

To qualify for the £200 bonus, you must be a new to HSBC or First Direct (its sister bank) and can't have had an account there since January 2019. The switch must be from another account. You should also be eligible for a £1,000 overdraft. 

The overdraft comes with a £25 buffer, so if you go beyond the arranged overdraft limit by £25 or less, it’s still at 0% interest. After that, you will be charged 39.9% APR based on a £1,200 overdraft.

First Direct*: £175 switching bonus (plus 7% interest on it regular savers account). 

Customers who use the Current Account Switch Service and pay in at least £1,000 to a new First Direct 1st Account will receive £175. The offer is only available to new First Direct customers, or HSBC customers who haven't opened an account since 1 January 2019.

A smaller bonus of £20 is also available for those who open an account and use online or mobile banking within three months. There's no need to pay in any money to get the smaller bonus. 

On top of the switching bonus, First Direct also offers a 7% regular saver account, fixed for 12 months. To receive the full amount, savers must put away £25 to £300 a month - the maximum you can save in any given year is £3,600.

First Direct also offers an overdraft of up to £250 at 0% EAR, subject to status.  

These options make this one of the best offers for switching banks.  

*When you open an account through this link, we may earn an affiliate commission.

TSB: Up to £100 switching bonus 

This deal is open to both new and existing customers, through if you have used the switching service to claim a TSB offer since 1 October, you are not eligible. 

You can bag two separate bonuses of £50 each if you do the following:

1. Switch and open a TSB Spend & Save account or a Spend & Save Plus account before 16 December, and then log onto the online banking app at least once to receive the first £50. 

2. For the second £50 bonus, make sure you have at least two direct debits going out from this account, use the debit card for at least five transactions and pay in at least £500. All this must be done by 13 January 2023 to be eligible for the second £50 bonus.

TSB said it will make all bonus payments by 31 August 2023 - so you may have to wait some time to benefit from your switch bonus. 

Recommended

Isas vs private pensions – which is better for retirement?
Isas

Isas vs private pensions – which is better for retirement?

Isas are becoming a popular option for retirement, but private pensions still have certain advantages.
7 Dec 2022
UK house prices see their biggest fall since 2008
House prices

UK house prices see their biggest fall since 2008

Halifax’s latest house price index shows UK house prices fell by 2.3% in November
7 Dec 2022
Key dates for 2023: here are the dates you need to know when it comes to your money in 2023
Personal finance

Key dates for 2023: here are the dates you need to know when it comes to your money in 2023

There is no shortage of important dates to be aware of next year – which are likely to affect your financial health. We run through the key dates in 2…
6 Dec 2022
What is a recession and how will it affect you?
UK Economy

What is a recession and how will it affect you?

The UK economy is heading towards a recession, according to economists. But what is a recession, and what does it mean for your money?
6 Dec 2022

Most Popular

Is it cheaper to leave the heating on low all day?
Personal finance

Is it cheaper to leave the heating on low all day?

The weather is getting colder and energy bills are rising, but is it really cheaper to leave the heating on low all day or should you only turn it on …
1 Dec 2022
Radiator vs electric heater – which is cheaper?
Personal finance

Radiator vs electric heater – which is cheaper?

We compare the costs, pros and cons of radiators and electric heaters and see which one will help keep your energy bill as low as possible.
28 Nov 2022
The pros and cons of smart meters – should you switch?
Personal finance

The pros and cons of smart meters – should you switch?

A smart meter can help you keep tabs on your energy usage, but is it better than a regular meter? We take a look at smart meters vs regular meters.
2 Dec 2022