Get The Best Bank Switching Offers In January For Extra Cash
Switching your current account is an easy way to make some cash.
Looking for a way to make some quick and easy money? Switching your bank account can earn you up to £175. Really.
Lots of banks are offering all kinds of perks from cashback to memberships to high interest savings accounts. So even if you’re not eligible to switch, there’s other benefits to be had, like fee-free spending money abroad. If you’re just trying to work out which student account to go for, then we’ve got a guide for the best student bank accounts too.
A recent Student Beans survey* found that 82% of students surveyed said that school had failed to prepare them financially. You won’t be alone if the thought of switching your bank account (which, if you’re like us, has been your first ever account) is a bit nerve-wracking and confusing. How long does it take? What happens if you forget and give your old bank details? Does it affect your credit rating?
We’ve answered all your questions, so read on to find out more.
Last updated: 31st December 2024
In this article:
- How to switch your current account
- Best bank switching offers
- Can you switch student bank accounts?
- How long does it take to switch bank account?
- Does it affect your credit rating if you switch bank accounts?
- How many times can you switch bank accounts?
How to switch your current account
Luckily, switching your bank account is made SO easy with the Current Account Switching Service (CASS). Over 50 UK banks are signed up to the service, so pretty much all of the main players in UK banking. It takes only seven days, and all your direct debits will be switched over too, so it really takes the stress out of it. To get started:
- Apply and open a new account.
- Review or download any old transactions/statements, as these won’t transfer over to your new account.
- Choose your switch date. It takes seven working days to complete, so take this into account when choosing. You can continue to use your existing bank account, debit card etc. until the switch is complete. But make sure you don’t set up any new direct debits as they won’t be transferred over to the new account.
- Ask your new bank to start the switch using CASS. If you have an existing overdraft, you’ll have to agree to transfer this with your new bank. They’ll give you an agreement to sign before the switch will start.
- At this point, sit back and relax, as your old and new banks will take care of the process. Any existing direct debits you had, or payments to your old account will transfer indefinitely over to your new one. So if someone sends a payment to your old bank account, it’ll redirect to your new bank account.
- Once the switch is complete, you can start using your new account. If you stumble into any trouble, the Current Account Switch Guarantee should keep you covered.
Best bank switching offers January 2025
| Bank | Money for switching | Overdraft | Initial deposit | Monthly fee | Cashback | Extra benefits |
|---|---|---|---|---|---|---|
| First Direct | £175 | 39.9% EAR variable (0% up to £250) | Pay in £1,000+ and make 5+ debit card payments within 45 days. | Linked regular saver with 7% interest fixed for a year | ||
| Santander | £150 | 39.94% EAR variable (four months at 0%) | Pay in £1,500+ and have 2+ Direct Debits within 60 days | £3 per month | – 1% on energy, council tax, broadband, TV, mobile & water bills (max £10/month)- 1% on supermarket, fuel and train spending (max £10/month) | – No foreign exchange fee when you spend abroad |
| Nationwide | £175 | 39.9% EAR variable (0% up to £50) | Pay in £1,000 and make 1 debit card payment within 31 days of requesting a current account switch | 1% cashback for 12 months | – Linked regular saver with 6.5% interest fixed for a year on up to £200 per month- 5% variable interest on current account balance up to £1500 for a year | |
| Co-Op | Up to £150 (£75 to switch and 2x £25 for three months) | 35.9% EAR variable | Deposit £1,000+, have 2+ Direct Debits, register for digital banking, add the debit card to a digital wallet and make 10 transactions using the debit card within 30 days |
Can you switch student bank accounts?
You can switch your student bank account just like you would any current account, and it could be a good way to make some extra cash. But make sure you check the eligibility, as a lot of student current accounts are only open to first year students. So for second and third year students, you’ll want to make sure that you find an eligible student account to switch to.
Some banks WILL allow students to switch in your second or third year, usually with some limitations applied. For example, having two years left in your studies. You’ll usually have to already have a student account to switch to another student account too.
How long does it take to switch bank account?
Using the Current Account Switching Service (CASS), switching a bank account takes seven working days to complete, from the date that you decide to switch.
This is because banks need the time to process the switch and sort out the transfer. But it’s important to note that you’ll still be able to use your existing account until the switch completes.
Does it affect your credit rating if you switch bank accounts?
Switching bank accounts DOES affect your credit score, as your new bank will perform a hard credit check to verify your identity. But if you’re applying just once, the impact on your credit rating is likely to be minimal and short-lived.
If you have a poor credit score already, you might want to speak to your bank to find out what your options are, and whether it’s the right time to switch. Find out how your credit score works so you can make more informed decisions.
How many times can you switch bank accounts?
Technically, there’s no maximum limit of how many times you can switch your bank account. But, as we mentioned, lots of hard credit checks can have a negative impact on your credit score.
Most bank accounts with switch offers will also include conditions that no prior switch should have been completed with the new bank or any of their associate companies too. So while there are no limits on the amount of times you can switch, there’s technical reasons why it might not be possible to keep switching accounts.
If you’re hoping to switch accounts to make money quickly, and need some help managing your money, check out our guide on budgeting for students.
* Student Beans Freshers Report 2024 – surveyed 1000 16-18 year olds about their expectations for student life and freshers.
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