Best bank account switch offers in the UK - Times Money Mentor (2024)

If you’re thinking of changing current accounts, consider the providers which are paying you for switching. The extra cash could come as a handy benefit, so below we’ve rounded up the best bank account switching bonuses in 2024.

From taking advantage of enhanced current account features to accessing better customer service, there are many reasons why you may wish to switch banking providers.

But before finalising your application, have you considered the current accounts with switching incentives?

Below we’ve listed the top cash incentives across the market, and if these accounts aren’t for you we’ve also listed some other providers with great long-term rewards.

In this article, we outline:

• The best bank account switch offers
• Recommended bank accounts for ongoing rewards
• Student switching offers
• Is there a downside to switching banks?

Read more: Six best current accounts

Best bank account switch offers in 2024

We list all the banking providers with cash switching offers below:

Read more: How to switch current accounts

First Direct – 1st Account

• Switching Incentive: £175.00

• Account Fee: £0.00

• Overdraft: Yes

Go to provider site

Eligible accounts: 1st AccountOne thing First Direct does well is customer service. During the Times Money Mentor awards last year it scored overwhelmingly high in this category and won “The Times readers’…

Eligible accounts: 1st Account

One thing First Direct does well is customer service. During the Times Money Mentor awards last year it scored overwhelmingly high in this category and won “The Times readers’ favourite financial app” award to boot.

As a digital provider, which is part of the HSBC banking group, you will only be able to contact its support team via phone, app or website. This is available 24/7, meaning you won’t need to wait for regular banking hours to log any requests or pick up the phone to make a call.

The account also comes with a few other perks, such as £250 interest-free overdraft (subject to status) and no first direct fees when spending abroad.

Ts&Cs apply. The switching offer currently has no end date, but can be removed at anytime.

Recommended bank accounts for ongoing rewards

If you’re unhappy with your current bank it could be worth switching accounts regardless of special bonuses. Some accounts offer cashback on your spending or high interest rates on your savings.

Chase – Current Account

• Arranged overdraft rate (EAR): Not applicable

• Interest Free Overdraft Period: Not applicable

• Interest Free Overdraft Limit: £0.00

• Unarranged overdraft rate (EAR): Not applicable

• Account Fee: £0.00

Go to provider site

JP Morgan’s UK bank Chase offers a current account with ongoing rewards.Upon signing up, you can get 1% cashback on your everyday debit card spending for a whole year with the account.…

JP Morgan’s UK bank Chase offers a current account with ongoing rewards.

Upon signing up, you can get 1% cashback on your everyday debit card spending for a whole year with the account. This means you can get cashback on anything from your holiday to a coffee stop with friends.

Choose to round up your spending to the nearest £1 and the bank will autosave the difference for you. You can also earn 5% AER (variable) interest on your round-up balance. After a year, Chase automatically transfers your remaining round-up balance to your current account.

Chase also has an easy-access savings account paying annual interest of 3.85% AER (variable).

Barclays – Premier Current Account + Avios Rewards

• Arranged overdraft rate (EAR): 35%

• Interest Free Overdraft Period: Unlimited

• Interest Free Overdraft Limit: £500.00

• Unarranged overdraft rate (EAR): Not applicable

• Account Fee: £0.00

To take advantage of the Blue Rewards Scheme you’ll need to open Barclays’ Premier Account. It comes with a £20 monthly fee, but will be free if you meet one of the…

To take advantage of the Blue Rewards Scheme you’ll need to open Barclays’ Premier Account. It comes with a £20 monthly fee, but will be free if you meet one of the following criteria:

– Pay in a gross annual income of at least £75,000
– Have a total balance of at least £100,000 in savings with Barclays, in Barclays UK investments, or in a mixture of both

The Premier Account also includes:

– Exclusive savings and mortgage rates. This includes an Instant Easy Access ISA at 1.66% AER on balances up to £10,000. However, it’s worth noting that several different providers better this rate
– Access to “financial guides”, a team of bankers willing to guide you through your personal challenges
– The option to join Barclays Avios Rewards for £12 a month, a scheme which gives you money off future journeys with British Airways
– Access to a black card, which allows ATM cash withdrawals of £2,000.

This makes it a handy account if you’re a frequent traveller and you wish to use its Avios Rewards scheme. For your £12 monthly fee you’ll be guaranteed 1,500 Avios points, which have a face value of about £15. But its real value is in the bonus 7,000 points you’ll receive for being a member for a full year and its discounted airport lounge passes.

Student account switching offers

If you’re at university, we have ranked the best student bank accounts. But here are a few examples of some of the student accounts that are available with perks:

Is there a downside to switching banks?

One of the main disadvantages to switching bank accounts is that it can temporarily lower your credit score. When opening a current account, your new provider will need to perform a credit check – and if you’re looking to make use of an overdraft facility it’ll perform a hard check which will appear on your report.

Recent applications for accounts, even when they’re successful, can temporarily lower your credit score. So, if you’re looking to take out a mortgage or another form of financing it could impact your application.

There are other usability factors to consider too. For example, if you’re someone who relies on internet banking you’ll need to get used to a new app and online banking experience. Over time you could get used to the experience, but if you’re happy with your current experience you’ll need to decide if giving this up is worth the cash incentive.

Likewise if you rely on visiting your branch you’ll need to form new relationships at your new bank.

Read more: Best premium bank accounts

What is the Current Account Switch Service?

In order to make switching easier, the government endorsed the launch of the free-to-use Current Account Switch Service (CASS).

To use the CASS, you’ll need to apply for a new account with your chosen provider and during the application you’ll be asked if you wish to use the service. Once you agree, you’ll need to fill in your old banking information and the switch will begin.

You can choose on which date you wish the switch to complete, with the earliest being seven working days once the switch begins. During the process the CASS will transfer your balance to your new provider, copy across your payee’s information, set up your Direct Debits across your new account, and redirect any payments from your old provider to your new one for a limited time.

What it can’t do is set up your subscriptions. So you’ll need to reorganise payments like Netflix and Spotify.

Read more: How to switch bank accounts

What should I know before switching banks?

There are many things to consider when changing banks:

Customer service

How good is the customer service at your new bank? Are they good at answering your questions and allaying concerns?

Security

Opt for banks with good security. Things to consider are encryption technology, fraud monitoring and security alerts, two-factor authentication (2FA), biometric authentication, password policies and automatic logouts for online banking. A few of these might seem like basic data protection, but they are not things you want to be taking for granted when your money is on the line.

Interest rates and fees

Be sure to compare the latest interest rates across different banks before making a choice. Also look to see if there are any special offers or incentives for signing up.

If you have a loan

You might need to pay it off before changing banks. You could however, also be able to transfer the loan. It is important to contact your current and new bank to assess your options.

Is this the right bank for me?

You need to find the type of account that works for you. Do you spend a lot of your time abroad? If so, it might be better to opt for a bank with no charges for spending your card abroad. Are you a student or graduate who could benefit from specifically tailored accounts with perks that suit your needs?

FAQ

How often can you switch bank accounts?

You can switch current accounts as many times as you wish. Although, as mentioned above, this can have an adverse effect on your credit score.

Does closing a bank account damage your credit score?

This largely depends on the account and your credit report. In theory, closing a credit account will reduce the amount of credit available to you and, if you’ve had it for a long time, the average age of your accounts.

If you have access to an arranged overdraft on your account then this is seen as a credit account.

Credit reference agencies value well-maintained, long-standing accounts so this could negatively impact your score. However, there are a variety of variables at play when determining your credit score so this may have a marginal impact.

Do I need to tell my bank I’ve switched current accounts?

If you’re using the CASS then you don’t need to inform your old provider of moving current accounts.