February is here, and the switching market has had a notable shake-up since our January roundup. The headline? First Direct has more than doubled its offer to a whopping £250 — making it the single biggest cash switching bonus available right now. If you've been sitting on the fence about switching, this is a strong month to jump.
Here's the full picture of what's available as of early February 2020.
The Full Switching Bonus Lineup
The Current Account Switch Service (CASS) continues to make the actual switching process painless — 7 working days, everything moves automatically. The only effort required is choosing where to go and meeting the eligibility requirements. Let's break down every offer worth knowing about.
The top tier:
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First Direct — £250 cash switch bonus. This is the one to pay attention to. First Direct has bumped its switching incentive from £100 to £250, making it comfortably the biggest upfront cash bonus on the market. First Direct has consistently been rated among the best banks for customer service, so you're not just collecting a cheque and tolerating a rubbish bank — you're getting a genuinely good account. You'll need to complete a full CASS switch, and there'll be deposit and direct debit requirements as usual. Check our eligibility checker to confirm you haven't held a First Direct account within their cooling-off window.
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HSBC — £175 cash switch bonus. HSBC remains a strong second choice. It's a free account with a straightforward £175 bonus, and HSBC has been running switching offers consistently enough that they clearly want your custom. If you've already used your First Direct eligibility, HSBC is the next best option. Note that HSBC and First Direct are part of the same banking group — so if you've recently held an account with one, check whether that affects your eligibility for the other.
The solid middle:
- £100 bonuses from multiple banks. Several banks are running £100 switching offers this month, typically on their free current accounts. These are perfectly decent if you've already grabbed the bigger bonuses, or if eligibility windows mean you can't access First Direct or HSBC right now. Some of these accounts also come with perks — one currently offers a £250 interest-free overdraft alongside the switching bonus, which is handy if you occasionally dip into the red. Head to our live offers page for the specific banks and their requirements.
The interest-paying current accounts:
- 3% AER on balances up to £1,500. There's still an account paying 3% on balances up to £1,500, which works out to roughly £45 a year in interest if you keep it topped up. That's not going to change your life, but it's a decent ongoing return for money sitting in a current account — especially when the Bank of England base rate is just 0.75%. If you're switching anyway, landing in an account that pays interest on your balance is a bonus on top of your bonus.
Check our live offers page for the latest requirements, minimum deposit amounts, and any new offers that appear after this post goes live.
Why First Direct at £250 Is a Big Deal
Let's put the First Direct offer in context. In January, their switching bonus was £100. It's now £250. That's a 150% increase overnight, and it makes February 2020 one of the strongest months for bank switching in recent memory.
For anyone keeping a switching spreadsheet (and if you're reading StoozeMax, you probably should be), here's what a sensible February plan looks like:
If you haven't switched to First Direct before: Do it now. £250 is exceptional. Open a basic current account elsewhere to use as your sacrificial switching account (or use an existing account you don't mind moving), and initiate the CASS switch to First Direct. Set up two direct debits — a couple of £1/month charity donations work perfectly — and arrange for your salary or a standing order to hit the account each month. Our switching guide walks through the whole process step by step.
If you've already done First Direct: HSBC at £175 is your next best bet, assuming you're outside the cooling-off window. After that, the £100 offers are still free money for minimal effort.
If you've done both First Direct and HSBC: Don't despair. The £100-tier offers are still available, and remember — First Direct and HSBC cooling-off periods will eventually expire, letting you go round again. In the meantime, you should be looking at stacking other income on top. Regular saver accounts and stoozing (using 0% credit cards to earn interest) can add several hundred pounds a year to your total. Read our guide on how stoozing works if you haven't already.
A Worked Example: Making the Most of February
Let's say you're completely new to bank switching and you're starting today, 3rd February 2020.
Step 1: Open a sacrificial account. Pick any bank that isn't running a switching offer you want. A basic Barclays or Lloyds account will do. This takes a few days to set up online.
Step 2: Switch to First Direct for £250. Once your sacrificial account is open, initiate a CASS switch to First Direct. Set up the required direct debits and deposit amount. The switch completes in 7 working days.
Step 3: Wait for your bonus. First Direct typically pays the bonus within a couple of months of you meeting all the criteria. Use this time to plan your next switch.
Step 4: Open another sacrificial account. While you're waiting, open a new basic current account to prepare for switch number two.
Step 5: Switch to HSBC for £175. Once your First Direct bonus is confirmed, switch your new sacrificial account to HSBC. Same process — CASS switch, direct debits, minimum deposit.
Step 6: Keep going. After HSBC, pick up a £100 offer. By the summer, you could realistically have pocketed £525 from three switches — £250 + £175 + £100. That's serious money for what amounts to a few hours of admin spread over several months.
And if you're doing this as a couple? Double it. Two people each running through the same switching sequence could generate over £1,000 in a year. All tax-free for most people, thanks to the Personal Savings Allowance.
What Else Should You Be Doing?
Bank switching is brilliant, but it's just one leg of the stool. If you really want to maximise your income from your finances in 2020, here are the other things to layer on:
Stoozing. If you have good credit, you can get a 0% purchase or balance transfer credit card, put the money you'd normally spend from your current account into a savings account instead, and earn interest on it while the credit card charges you nothing. On a decent 0% card with a reasonable spending pattern, this can net you £100–£300 a year depending on rates and your spend. We explain the whole thing in our guide on how stoozing works.
Regular saver accounts. Several banks offer regular saver accounts paying 5–7% AER on monthly deposits of up to £250–£500. The headline rates sound amazing, but because you're drip-feeding money in monthly, the actual return is roughly half the advertised rate (since the average balance over the year is about half the total). Still, it's essentially risk-free money — and you can often open a regular saver as a perk of the current accounts you've switched to. So your HSBC switch bonus could also unlock access to an HSBC regular saver.
Interest-paying current accounts. As mentioned above, some current accounts pay 3–5% on in-credit balances. Park money in these while you're waiting between switches to squeeze out extra returns. Every pound sitting idle in a 0% account is a missed opportunity.
The Bigger Picture: February 2020 Context
It's worth noting what's happening in the wider financial landscape. The Bank of England base rate sits at 0.75%, with most commentators expecting it to stay there for a while (though there's always speculation about a cut). That makes the interest rates on offer from switching accounts — 3% here, 5% there — look genuinely attractive relative to the high street savings market, where most easy-access accounts are paying well under 1.5%.
The FCA's overdraft reforms are also looming — new rules kick in from April 2020 that will scrap fixed daily overdraft fees and move all banks to a single annual interest rate. This is going to make overdrafts significantly more expensive for many people, particularly those who used to rely on small, cheap arranged overdrafts. If that's you, it's another reason to get your banking sorted now, while the switching bonuses are strong and you can find accounts with the overdraft terms that work for you.
And with the political dust settling after the December 2019 general election, the economic outlook feels a touch more stable (Brexit trade negotiations notwithstanding). Banks tend to run more generous switching offers when they're feeling confident about customer acquisition — so February 2020 is arguably a sweet spot.
Your February Action Plan
Here's the short version:
- Check your eligibility. Use our eligibility checker to see which offers you qualify for right now.
- Go for First Direct first if you can. £250 is too good to leave on the table.
- Set up everything properly. Direct debits, minimum deposits, the lot. Missing a requirement means missing the bonus.
- Plan your next two switches. Don't just grab one bonus and forget about it. Map out your switching calendar for the year.
- Layer on stoozing and regular savers. Read how stoozing works and open any regular savers your new accounts unlock.
The live offers page has the most current information, updated regularly. And if you're brand new to all this, the switching guide will walk you through everything from start to finish.
February 2020 is shaping up to be one of the best months for switching in a while. Don't leave free money on the table.
Common Questions
Can I switch to First Direct if I've held an account with HSBC? First Direct is part of the HSBC Group, so it depends on the specific terms of the offer. In most cases, having an HSBC current account won't disqualify you from First Direct (and vice versa), because they operate as separate brands with separate account ranges. But always check the small print — the eligibility criteria can change between offers. Our eligibility checker can help you confirm.
Is £250 the highest switching bonus ever offered? It's certainly among the highest we've seen for a straightforward cash bonus. Some banks have occasionally offered larger packages when you factor in insurance or other bundled perks, but for pure cash in your pocket, £250 from First Direct is right at the top of the range. If you've been waiting for a good time to switch, this is it.
How long do I need to stay with a bank after switching? Most banks require you to keep the account open and meet the minimum requirements (direct debits, monthly deposit) for at least 6–12 months to keep the bonus. After that, you're free to switch again. The exact terms vary by bank, so check the specific offer conditions. Planning your switches around these holding periods is key to maximising your annual income.
Can I switch my joint account for a bonus too? Some banks accept joint account switches and some don't — it varies by offer. Where joint switches are accepted, both account holders typically need to meet the eligibility criteria. It's worth checking each offer's terms, as a joint switch can be an easy way to double up on bonuses without needing to open separate accounts.
What if I need my overdraft and the new bank won't match it? CASS includes a safety net for this. During the switching process, the new bank will tell you whether they can offer an overdraft facility. If they can't match what you currently have, you'll be notified before the switch goes through and you can choose to cancel. You won't be left without overdraft access unexpectedly. That said, with the upcoming FCA overdraft reforms in April 2020, it's worth reviewing whether you actually need an arranged overdraft — the new pricing structures might make it more expensive than you expect.
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