How to make up to £175 by switching bank accounts

Pedro Goncalves · Finance Reporter, Yahoo Finance UK

Wed, Apr 23, 2025, 10:00 PM 4 min read

Switching banks has become relatively frictionless — customers apply through Cass, choose their new provider, and the system handles the rest, including transferring direct debits and standing orders. The process typically takes seven working days, and incoming payments to old accounts are redirected for up to three years. While users can continue transacting on their old account during the transition period, banks advise against setting up new payments in that window.

First Direct: £175 Bonus, 7% savings and an overdraft perk

First Direct is currently among the most generous, offering a £175 cash bonus to customers who open its 1st Account and complete a full switch. Eligibility is restricted to those who have not previously held a First Direct account or an HSBC (HSBA.L) account since January 2018.

Additional perks include a fee-free overdraft of up to £250 and access to a regular saver paying 7% interest (fixed for 12 months) on monthly deposits of up to £300. To qualify, customers must use the Cass system, switch at least two direct debits or standing orders, deposit a minimum of £1,000 within 45 days, make five debit card transactions, and log in to online or mobile banking.

NatWest: £150 bonus, cashback, and a high-yield saver

NatWest (NWG.L) is also vying for switchers' attention, offering a £150 switching bonus and the potential to earn an additional £36 in cashback over a year. Customers who opt for the bank’s Reward account, which costs £2 per month, can earn £5 monthly by setting up two direct debits and logging into the mobile app, yielding a net benefit of £3 per month or £36 annually. Combined with the switching incentive, this brings the potential first-year gain to £186.

To qualify, new customers must apply via the NatWest website or app and use Cass to move their current account. Existing NatWest customers can also receive the incentive by switching an account from another provider and upgrading it to a Reward account. Within 60 days of opening, users must deposit £1,250 and log in to the mobile banking app at least once. Once all conditions are met, the bonus is paid within 30 days.

Nationwide, Lloyds and NatWest biggest ‘winners’ from account switching service

Customers using Cass made 1,093,117 current account switches between April 1, 2024, and March 31, 2025.

A total of 222,805 current account switches were completed between January and March 2025 by customers using the service, which was lower than 320,364 switches recorded in the same period a year earlier.

Figures provided voluntarily by banks and building societies also show that Nationwide Building Society, Lloyds (LLOY.L), NatWest and the Co-operative Bank achieved the highest net switching gains between October and December 2024.

Nationwide had the highest net switching gains with 51,254 over the period, followed by Lloyds Bank (50,061), NatWest (7,279) and the Co-operative Bank (3,812).

The figures do not include customers who did not use Cass to move their current account.

March was the busiest month for switching so far, with 79,680 switches, followed by February (76,007) and January (67,119).

Alastair Douglas, CEO of TotallyMoney, said: “Today’s figures highlight that while current account switching remains popular, it's driven by the sign-up bonuses on offer. The biggest winners late last autumn were Nationwide and Lloyds, who were paying customers £175 and £200 to switch, plus extras such as high savings rates, cashback, and other perks.

“Loyalty doesn’t pay, but switching banks can. So, if you're looking to bag a bonus now, First Direct is offering £175, and NatWest £150 — but you will have to tick a few boxes before they hand over the cash. So read the small print before jumping in, and have a think about the bigger picture. Access to a physical branch might be important to you, or you might benefit most from an interest free overdraft or zero fees for foreign spending.

“Just don’t be put off, because switching is easy, and data shows that nine in 10 people are happy with the process. That’s because the Current Account Switch Service will automatically transfer direct debits and regular income to your new provider within seven days.”

Since the service launched in 2013, it has facilitated more than 11.6 million switches and redirected more than 163.6 million payments.

John Dentry, product owner at Pay.UK, owner and operator of Cass, said: “The past quarter has provided a turbulent economic backdrop, no doubt encouraging increasingly money-conscious consumers to take action. By taking advantage of the competitive and dynamic banking market, they have been able to capitalise on more competitive rates, incentives, or improved features.”

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