Overview
A cash incentive can make changing bank feel like a straightforward win. The useful calculation includes what you must do to qualify, what the new account costs and what you give up by closing the old one.
The switching service and the bank's promotional offer are also separate things. A switch can complete successfully while a bonus remains unpaid because one of the promotion's conditions was not met.
Quick Answer (Read This First)
A switching offer is worth considering when you clearly qualify, can meet the conditions without unnecessary spending or borrowing, and still want the account after the bonus is paid. Calculate the benefit after fees and lost account perks.
The Current Account Switch Service normally completes an agreed switch in seven working days after the new account is opened and ready. It transfers relevant payments and closes the old account. It does not promise that you qualify for a particular cash offer.
Read the Offer as a Set of Separate Conditions
Promotions change, so work from the bank's current written terms rather than an old comparison article or social post. Save a copy of the offer that applies when you submit the application.
Common conditions to look for include the qualifying account, the application deadline, completion deadline, previous-customer exclusions and any restrictions on people who have already received a bonus. Conditions may cover more than one brand in a banking group.
Next, record any required pay-in, Direct Debits, card transactions, app registration or ongoing account use. The wording matters: a Direct Debit being set up and a payment actually being collected are not necessarily the same condition.
| Condition | Record before applying |
|---|---|
| Eligibility | Which previous accounts or bonuses disqualify you |
| Switch requirement | Whether a full switch using the named service is required |
| Funding | Amount, deadline and which transfers count |
| Payments | Number and type of qualifying payments |
| Account fee | Monthly cost and any genuine waiver conditions |
| Reward | Expected payment date and any retention requirement |
Do not take out subscriptions you do not want merely to create qualifying payments. Our subscription-cancellation guide shows how small recurring costs accumulate.
Calculate the Benefit You Would Actually Keep
Use the same time period for the new and old accounts. Twelve months can be a useful comparison, but it is an assumption for your calculation, not a universal minimum holding period.
Consider an invented offer with a £175 bonus. Suppose the account costs £5 a month, the fee is not waived in your circumstances, and switching would lose £24 of annual benefits you currently use.
| First-year comparison | Amount |
|---|---|
| Switching bonus | £175 |
| Twelve monthly fees of £5 | −£60 |
| Lost existing benefit | −£24 |
| Benefit remaining before other differences | £91 |
If the new account includes something you would otherwise pay for, add only the saving you will genuinely make. Travel cover has no replacement value in this calculation if it is unsuitable or you would not otherwise buy it.
Also compare overdraft costs, interest on balances and the practicality of cash deposits or branch access. A one-off bonus should not hide an ongoing feature that makes the account expensive for your normal use.
What the Switching Service Moves
For eligible participating accounts, the service moves the balance and relevant payment arrangements, including Direct Debits and standing orders. Payments sent to the old account are redirected under the service.
The old account closes as part of the switch. If keeping it open is important, discuss an alternative transfer arrangement with the bank; that may not meet a promotion requiring a full switch.
The service does not move savings accounts or ISAs. Joint accounts also need appropriate joint-account arrangements and both holders' agreement. The official switching questions explain these boundaries.
Before starting, check what closure does to any linked saver, insurance, reward or fee arrangement. A separate product may remain open but lose a preferential condition, or require a new funding account. Its own terms decide that outcome.
Keep a Short List of Things to Update Yourself
Recurring payments using your old debit card need particular attention because you will have new card details. Review subscriptions, online shopping accounts and travel bookings, and follow the provider's instructions for replacing the saved card.
Open Banking permissions and budgeting-app connections may need to be authorised again for the new account. Your historic statements do not transfer with the payment instructions, so download records you expect to need.
If you use a separate bills account, confirm that your own top-up transfers will still reach the right place. For bank pots and spaces, recreate the allocation rules and verify how bills are funded at the new bank.
An Overdraft Needs Its Own Agreement
The new bank does not have to reproduce your existing overdraft. Agree any facility you need before starting and compare its cost as well as the limit.
If the new bank will not provide it, you need another arrangement to repay the old overdraft before switching. The switching service does not write off that debt.
For someone regularly overdrawn, a less expensive sustainable account arrangement can matter more than the incentive. Our guide to overdraft interest explains how to think about that cost.
Choose a Date You Can Monitor
Account opening and switching are distinct stages. Allow time for the new bank's checks before treating a proposed switch date as certain.
Choose a date when you can monitor the accounts and have access to essential money. Keep the old account funded for payments before completion, and avoid setting up new instructions there during the final switching period.
After completion, check the next salary or other regular incoming payment, the next important bills and the promotional conditions. Contact the new bank if the switch goes wrong. The guarantee covers relevant charges or interest caused by switching errors, while a dispute about a bonus needs checking against the offer terms.
Frequently Asked Questions
Explore the Budgeting & Banking guides for related help. This is general UK information, not a recommendation of a bank or account. Sources checked on 20 September 2026.
