The August 2020 Switch Landscape
If you've been thinking about switching banks but waiting for the right moment, August 2020 might just be it. After months of economic uncertainty and lockdown, many of us are reassessing our finances and looking for ways to squeeze more value from our money. Bank switching is one of the most straightforward ways to do that — and right now, the market's active enough to make the effort worthwhile.
The standout offer we're tracking is Halifax's £100 switch bonus, available via the Which? switching service. It's not the biggest bonus we've ever seen, but combined with the right strategy, it's a solid foundation for building your banking income.
But here's the thing: bonuses alone don't tell the full story. What matters is how you use them and what else you layer on top. That's where the real money lives.
What's on Offer Right Now
Halifax — £100 Switch Bonus
Halifax is leading August's offers with a straightforward £100 bonus when you switch via Which?'s switching service. To qualify, you'll need to:
- Switch your main account through the Current Account Switch Service (Which? provides one interface for this)
- Set up at least two direct debit guides or standing orders on your new account
- Wait for the bonus to credit (usually within a few weeks of completing the switch)
This is a solid, no-fuss offer. Unlike some banks that tie you to lengthy periods or complicated eligibility criteria, Halifax keeps it simple. No minimum balance requirements, no locked-in term — just a straightforward bonus for moving your account.
Where are the other offers?
The August market is quieter than spring and early summer, which is typical for this time of year. Many banks are consolidating offers and waiting to see which products attract attention as we head toward autumn. Some banks may be cautious about customer acquisition costs given the post-COVID economic backdrop.
That said, there are still deals out there beyond Halifax. For the full current picture, check our live offers page — we track the landscape constantly and update it as offers change. The key point: if you've been considering switching, now's the time to check what's available rather than waiting for August to suddenly explode with new bonuses.
Stacking: How to Turn £100 Into £500+
Here's where bank switching becomes genuinely lucrative. A single £100 bonus is nice, but it's just the start. The real strategy is stacking — combining bank switching with other banking income methods. Think of it like a financial jigsaw puzzle where each piece contributes to the bigger picture.
Bank Switching + Stoozing
Stoozing is using a 0% credit card to earn interest on your own money. Here's a practical example that works perfectly in August 2020:
Let's say you switch to Halifax and receive your £100 bonus. At the same time, you apply for a 0% balance transfer card — somewhere with a long promotional period, ideally 18 months or more. You move a chunk of your emergency fund onto that card, deposit the balance in a savings account earning interest, and let the interest accumulate while you pay nothing on the card itself.
Over a year, a £5,000 stooze at 1.5% interest earns you £75 in pure interest. Combined with your £100 switching bonus, you're already at £175 for relatively little work. Over two years with the right 0% card, you're looking at considerably more.
The catch? You need to be ruthlessly organised. You need to:
- Track when your 0% period ends and set reminders months in advance to pay off the balance before interest kicks in
- Ensure your credit score can handle the hard credit check from the card application
- Make sure the savings account interest rate is actually worth the effort (aim for 1%+ at minimum)
- Keep meticulous records to ensure you don't miss a payment on either the card or your savings account
Our how stoozing works guide walks through the full mechanics if you're new to this. It's absolutely doable, but it requires discipline.
Bank Switching + Regular Savers
regular savers accounts are banking's underrated gems. Many banks offer 3-5% (sometimes more) if you save a fixed amount each month. Unlike stoozing, there's zero complexity — just money going in, interest being credited, zero risk.
Combine a switch bonus with a regular saver account and you're building genuine wealth. For example:
- Switch bonus: £100 (one-time)
- Monthly regular saver: £200/month at 4% = roughly £4 interest per month in year one
- Over a year: £100 + (£200 × 12) + (interest earnings) = you're building a proper financial buffer while earning interest guaranteed
The beauty of regular savers is that they're zero-risk. Unlike stoozing, there's no credit check, no 0% clock to manage, no complex maths. You set up a standing order, the bank credits interest monthly, and you build savings discipline alongside actual returns.
Many people dismiss £4/month as trivial, but that compounds. And crucially, it's guaranteed. You don't have to hope interest rates stay stable or that the bank doesn't change the terms mid-year.
The Triple Stack
If you're serious about maximising your banking income, you might run all three simultaneously:
- Switch banks for the bonus (£100 from Halifax right now)
- Use a regular saver to build savings discipline and earn guaranteed interest (£48+ per year on £200/month at 4%)
- Run a stooze alongside, carefully managed to avoid the infamous 0% expiry trap (£75+ per year on £5,000)
Total in year one: £100 + £48 + £75 = £223, plus the ongoing benefit of being in the right account for your banking habits. It requires organisation, but the numbers work, and it's completely legitimate.
What About Timing?
One question we get asked a lot: Is August a bad time to switch?
Not inherently, but timing deserves thought. When you switch, you typically have a 14-day cooling-off checker period where you can change your mind. During that period, your old account remains open and your new account is settling in the background.
In August, with holidays, bank holidays, postal delays, and summer staffing, these settlement timelines can stretch. If you're planning to do multiple switches to maximise bonuses, you'll need to schedule them carefully so you're not caught in a situation where your previous switch hasn't fully settled before you want to initiate the next one.
A rough rule of thumb: allow three weeks between switches if you're chaining them. That gives your new account time to settle fully, prevents confusion with direct debits, and keeps your finances tidy.
How to Get Started
1. Check your eligibility. Not all accounts are eligible for all switch offers. Some have credit score requirements, others have geographic restrictions, and some exclude people who've switched recently. Our eligibility checker will tell you which offers you actually qualify for — no point applying if you don't meet the criteria.
2. Gather your direct debits. Most switch bonuses require you to set up direct debits on your new account. Before you switch, list them all: gym membership, council tax, utilities, insurance, subscriptions, anything that comes out automatically. You'll need at least two to trigger most bonuses, so identify them now.
3. Use the official switching service. The Current Account Switch Service (CASS) exists for a reason. Using it provides you with legal protection and speeds up the settlement process. It's not optional if you want the bonus. Our switching guide walks through the exact steps.
4. Let it settle. Once you've switched, your old account closes and your new account becomes your main account. This takes a few weeks. Resist the urge to switch immediately again; let the timing settle before your next move.
Common Questions
Do bank switch bonuses count as taxable income?
They don't. HMRC treats bank switch bonuses as gifts, not income. The same applies to regular saver interest earned within your Personal Savings Allowance (£1,000 for basic rate taxpayers, £500 for higher rate taxpayers). However, stoozing interest is treated as savings income and you should declare it on your tax return if it exceeds your allowance. We've written a full guide on tax rules for bank switching and stoozing.
Can I switch multiple times in a year?
Yes. There's no legal limit to how many times you can switch banks — but each switch creates a cooling-off period, and you need to ensure you meet the eligibility criteria for each bonus (usually you can't switch to the same bank twice within a 12-month window). Plan carefully, and you can legitimately chain switches together throughout the year.
Will switching hurt my credit score?
Each switch triggers a hard credit check, which creates a tiny negative mark on your credit file. But it's temporary and minimal — the impact fades quickly. The bigger concern is if you're planning to apply for a mortgage within the next two or three months. In that case, pause your switching activity to let your credit file settle before the lender pulls it.
Is a £100 bonus worth the effort?
On its own, perhaps not — switching takes time, organisation, and mental energy. But combined with a regular saver account and careful financial planning, absolutely. Think of it as £100 plus the interest you'll earn on your savings going forward, plus the improved account features you might get from switching to a better-designed bank.
What if I'm in my cooling-off period with Halifax — can I switch to another bank?
Technically yes, but it's complicated. Your old bank is still settling, and Halifax is settling. If you switch again during this period, you're managing three concurrent account transitions, which increases the risk of missed direct debits, confusion, and delays. Our recommendation: wait for full settlement (roughly three weeks) before your next switch unless you're exceptionally organised.