December is an unusual month for bank switching. Most people are focused on Christmas shopping and year-end finances rather than changing banks. But that's precisely why December is actually a golden window for switchers. Banks still have active offers, fewer people are competing for them, and you've got time to plan your switches strategically before the new year – possibly even fitting one more bonus into your 2020 tax year.
Let me walk you through what's currently available, and why December is a genuinely smart time to move money.
What's Live Right Now (Early December 2020)
The market is actually pretty healthy at the moment. Here's what we're seeing:
The headline offer is Nationwide's £1500 switch bonus via the BCWYC (Bank Current Account Switch Service). That's genuinely excellent – one of the better rates we've seen in recent months. Virgin Money is running a solid £1000 offer, which is also very competitive.
Below those two are a strong middle tier:
- First Direct: £250
- RBS and NatWest: £175 each
- HSBC: £150
- Lloyds and Halifax: £125 each
- TSB: £100
The range from £100 to £1500 means there's real money to be made here, but you need to be strategic about which switches you prioritise. That £1500 from Nationwide? That's literally 15 times better than TSB's offer. If you're planning to switch, starting at the top of that list makes sense.
Why December Matters More Than You Think
There are a few reasons December is actually prime switching season if you're clever about it:
Fewer competitors. Most people are thinking about Christmas, Boxing Day sales, and their annual leave. Banks aren't drowning in switch applications, so the process tends to run smoothly without delays. The last thing you want is a complex switch that drags on into early January.
Tax year planning. We're just over two months away from the end of the 2020/21 tax year. If you switch banks and get a bonus in December, that bonus sits neatly in this tax year. More importantly, you've got time to plan your 2021/22 switches already – and banks love customers who plan to stay with them for at least a few months before moving on.
regular savers accounts. If you're stacking your banking income, December is when many people start thinking about their savings strategy for next year. Switching your current account now gives you the option to open a regular saver with your new bank in January, maximising your stacking potential.
The Strategic Approach: Which Switch Should You Do First?
Here's the thing about bank switching bonuses: they're not all created equal, and the "best" offer for you depends on your circumstances.
If you've got money to deposit immediately: Go for Nationwide's £1500. The application takes about 7 working days under BCWYC. That means you could theoretically switch today and have the bonus in your account well before Christmas. That's real spending money, or alternatively, a significant boost to your emergency fund heading into 2021.
If you're worried about juggling multiple switches: Virgin Money's £1000 is almost as good as Nationwide's, and Virgin Money is genuinely easy to bank with. It's a lower-stress option that still gets you serious money.
If you want to do multiple switches without overdoing it: This is where strategy comes in. You can do multiple switches, but the cooling-off checker period rules (which require a gap between switching activity on the same account) mean you need to plan carefully. A typical approach would be: switch to Nationwide in early December, then plan your next switch for mid-January once the cooling-off period has elapsed.
If you're just getting started with switching: First Direct's £250 offer is actually underrated. First Direct is known for genuinely excellent customer service, and the account doesn't have pesky account fees. If you're new to this, it's a solid, low-pressure introduction to the process.
Your Checklist Before You Switch
Before you hit that application button, make sure you've done the basics:
Check your eligibility. Head to the eligibility checker and confirm you're able to switch to each bank you're considering. Some banks have criteria around previous accounts or the amount of money you need to deposit.
Sort out your direct debit guides. This is the most common friction point. Banks require you to have at least two active direct debits running before they'll release your bonus – or you'll need to set them up quickly after switching. You don't need to keep them forever, but you do need them in place. If you're worried about this, we've got a whole guide on cheap direct debits for bank switching – you can get set up for as little as 30p a month.
Understand the cooling-off period. The BCWYC switching service has a specific cooling-off period of 30 days – but the key thing is that you need a gap between switching the same account to different banks. Plan your switches so you're not trying to move the same money back and forth too quickly. Our switching guide has the full details on how this works.
Check your payroll. Make sure your employer's payroll system can handle diverting your salary to a new account. You'll usually want to give them at least 4 weeks' notice before your first switch, but once you've done one or two, subsequent switches are easier – your employer's payroll team will have your details on file.
December Switch Timing: The Reality
Here's a real-world timeline:
Week 1 (now through 13 December): You apply to switch to Nationwide. Under BCWYC, they've got 7 working days to process it.
Week 2-3 (14-20 December): The switch completes. Your bonus hits. You're sitting on £1500 cash or you've moved it into a savings account.
Late December/Early January: You wait out the cooling-off period. You can't switch this main account again for 30 days.
Mid-January onwards: You're ready for your next switch (Virgin Money, perhaps?) without any issues.
By February, you could realistically be £2500 richer (Nationwide + Virgin Money) from just two switches. That's not trivial money.
Stoozing Whilst You Settle In
Here's a thought: if you're switching banks, you might also be thinking about your broader banking income strategy. Switching bonuses are just one piece of the pie. How stoozing works is worth understanding – it's basically using 0% credit cards to generate interest. In December, with the New Year coming, many banks are releasing new 0% balance transfer offers. If you've got existing credit card debt, moving it to a 0% card whilst you're earning switching bonuses is a smart way to stack income streams.
Same goes for regular saver accounts. Once your switch is completed and you've settled in, you can usually open a regular saver account with your new bank. These often pay 3-7% on money you save regularly – combine that with a switching bonus and you're building real momentum.
Common Questions
Can I switch to Nationwide if I've switched in the last few years?
Yes, absolutely. The cooling-off period rules apply to your current account switching activity, not to your lifetime switching history. You can switch to Nationwide, then move on to Virgin Money three months later. Many people do multiple switches per year. Just make sure you understand the rules – you need a gap between switching the same account.
Do I need to keep my old bank account open after switching?
Not necessarily, but it's often wise to leave it open for a month or two. Sometimes a stray direct debit you'd forgotten about will try to come out of the old account, and it's easier to have it there than to get stuck in a dispute. After 2-3 months, once you're confident nothing else is coming out, you can close it.
Will switching to all these banks hurt my credit score?
No. The switching service uses soft credit checks, which don't show up on your credit file. Your score isn't affected. What matters is that you don't spam applications to lots of banks in a short space of time – but doing 2-3 planned switches over 3-4 months is absolutely fine and won't hurt your borrowing power.
What happens if something goes wrong during the switch?
The BCWYC has protections built in. If your new bank messes something up, BCWYC will help sort it. And if your old bank doesn't cooperate properly, there are escalation routes. In practice, this is rare – the switching service is quite mature now. But you're protected if things do go pear-shaped.
Can I do multiple switches if I'm self-employed or have irregular income?
Yes. Income regularity doesn't usually matter. What matters is that you can meet the direct debit requirement (two active direct debits) and that the money is genuinely coming in and out of the account, not just sitting there. As long as you're using the accounts actively, you're fine.
The December Decision
Look: December is chaotic, and bank switching can feel like an extra thing you don't have time for. But the math is pretty simple. Nationwide's £1500 bonus is worth 10+ hours of work for most people. Even Virgin Money's £1000 is meaningful money. These aren't "free tenners" – they're genuine earnings from moving your money somewhere it can work harder for you anyway.
If you've been thinking about switching, now is actually a smart time. You've got breathing room before the new year chaos, the offers are live, and you can plan your moves carefully.
Check the live offers page to see what's currently available, use the eligibility checker to confirm you can apply, and then sit down with a cup of tea and plan your December switches strategically.
Your future self in January will thank you for the bonus landing in your account.