Happy new year — and what better way to start 2020 than by getting paid to switch your bank account? January is traditionally a strong month for switch offers, and right now there are some genuinely decent bonuses on the table. Here's the full picture.
Every Switch Bonus Available Right Now
The Current Account Switch Service (CASS) makes switching painless — your direct debits, standing orders, and salary all move automatically in 7 working days. And right now, banks are paying handsomely for your custom.
Here's what's on offer as we head into 2020:
The big hitters:
- HSBC — £175 switch bonus. The highest cash incentive available right now. HSBC has been aggressive with switching offers recently, and this is a strong one. You'll need to complete a full CASS switch, deposit at least £1,750 within 30 days, and stay for a minimum period.
- RBS — £150 switch bonus. A solid £150 for switching via CASS. Royal Bank of Scotland has been quietly competitive in the switching space, and this is worth considering if you've not held an account with them recently.
- NatWest — £150 switch bonus. Same parent group as RBS, same £150 offer. If you've already used RBS, you likely won't be eligible for NatWest (and vice versa), since they share banking licences. Worth checking your eligibility before applying.
The middle ground:
- Lloyds — £125 switch bonus. Lloyds has been a reliable fixture in the switching game for a while now. £125 is decent, and the account itself is straightforward with no monthly fee.
- Halifax — £125 switch bonus. Part of the same group as Lloyds, so again — if you've switched to one, check whether you're eligible for the other. Halifax's £125 is a dependable option.
Still worth doing:
- First Direct — £100 switch bonus. First Direct consistently wins awards for customer service, and they've been running switch incentives for years. The 1st Account has no monthly fee, and £100 cash for switching is a fair deal — especially if you value a bank that actually picks up the phone when you call.
- Nationwide — £100 switch bonus. The FlexAccount comes with a £100 switching incentive. Nationwide is a building society rather than a bank, which some people prefer on principle. No monthly fee on the standard account.
- TSB — £50 switch bonus. The lowest cash offer on the list, but still free money for about 20 minutes of form-filling. TSB's Classic Plus Account also pays 3.0% AER on balances up to £1,500, which sweetens the deal considerably (more on that below).
Total if you could do them all? A theoretical £1,075. In practice, you can only do one CASS switch at a time, and cooling-off periods mean you'll need to plan your route carefully. But even two or three switches over the course of 2020 could net you £300–£500. Not bad for filling in a few forms.
Check our live offers page for the most up-to-date requirements and any new offers that appear after this post goes live.
Beyond the Bonus — Current Accounts That Actually Pay Interest
The switch bonus is a one-off windfall, but some of these accounts also pay ongoing interest on your balance. That's worth factoring into your decision about which account to keep long-term (or at least until you switch again).
Nationwide FlexDirect — 5.0% AER on balances up to £2,500 for the first 12 months. This is genuinely excellent. If you keep £2,500 in the account, that's roughly £125 in interest over the year — on top of the £100 switching bonus. After 12 months the rate drops to something far less exciting, but by then you can switch again. Use our switching guide to plan your next move before the rate expires.
TSB Classic Plus — 3.0% AER on balances up to £1,500. Less headline-grabbing than Nationwide's 5%, but there's no introductory catch — it's an ongoing rate. That works out to about £45 a year if you keep the account topped up. Combined with the £50 switching bonus, you're looking at nearly £100 in your first year from what is, let's be honest, minimal effort.
Santander 123 Current Account — 1.5% AER but with a £5 monthly fee. The 123 account also pays cashback on household bills (council tax, energy, broadband, and so on), which can offset the fee. Whether it's worth it depends on your specific bills. For most people, the maths only works if you have large direct debits and keep a healthy balance. Run the numbers before committing.
How to Maximise Your Switching Income in 2020
If you're new to bank switching, here's the approach that works:
1. Start with the highest-value offer you're eligible for. That's HSBC at £175 right now. Use our eligibility checker to confirm you qualify — the main disqualifier is having held an account with the same bank within their cooling-off period (typically 12–36 months).
2. Keep a "sacrificial" account. You need an existing current account to switch from. Open a basic account with any bank that isn't running a switching offer — this becomes your rotating sacrificial account. You switch it to the highest-paying offer, collect the bonus, then open another basic account to switch next time.
3. Set up the minimum requirements immediately. Most banks require at least two active direct debits and a minimum monthly deposit (often £1,000–£1,750) to qualify for the bonus. Set up a couple of cheap direct debits — a £1/month charity donation and a £1/month subscription will do — and redirect your salary or a standing order to cover the deposit requirement. We've got a full breakdown in our switching guide.
4. Stack with stoozing and regular savers. Bank switching is brilliant, but it's just one part of the picture. If you're not already using 0% credit cards to earn interest on money you'd be spending anyway, read our guide on how stoozing works. You can realistically add another few hundred pounds a year on top of your switching income.
5. Track everything. This is where it gets easy to lose money — forgetting when a 0% deal expires, missing a cooling-off period, or not meeting direct debit requirements. Write it down, set calendar reminders, or let StoozeMax track it all for you.
A Worked Example: Your First Three Switches
Let's say you're starting from scratch in January 2020.
Switch 1 (January): Open HSBC, switch your sacrificial account via CASS. Deposit £1,750 and set up two direct debits. Collect £175 after the qualifying period.
Switch 2 (April): Open a new basic account (takes a few days). Then switch that account to Nationwide FlexDirect. Collect the £100 bonus, plus start earning 5.0% AER on up to £2,500. If you park £2,500 there for the remaining 9 months or so, that's roughly £94 in interest.
Switch 3 (August): Open another basic account, switch to Halifax or Lloyds for £125.
Running total by end of 2020: £175 + £100 + £94 (interest) + £125 = approximately £494. From three switches and keeping some money in a current account. No risk, no investing, no complicated products.
That's nearly £500 just from being organised about where you keep your current account. And if you're doing this as a couple with joint accounts or separate switches, you can potentially double it.
What's Changed Since Last Year
If you were paying attention to switching offers in 2019, you'll notice the landscape is fairly similar. HSBC remains the headline act, and the big banks continue to compete in the £100–£175 range. The FCA's overdraft reforms are coming into effect in April 2020, which will change how overdraft charges work across the board — but that shouldn't affect your switching strategy unless you rely on an arranged overdraft.
The Nationwide FlexDirect 5.0% rate is still the standout for ongoing interest, though it's been at this level for a while now and there's always a risk it could be cut. If you haven't taken advantage of it yet, now would be a sensible time.
One thing to watch: with interest rates generally low, banks may start trimming their in-credit interest rates over the coming months. Lock in what you can while it's available.
Common Questions
Can I switch if I'm in my overdraft? You can, but the new bank will need to agree to provide an overdraft facility. If they can't match your existing overdraft, you'll be told before the switch completes and can choose not to proceed. It's generally easier to switch when you're in credit.
Do I need to wait for one switch to finish before starting another? Yes. CASS only allows one active switch at a time, and each switch takes 7 working days. You'll need to wait for the bonus to be paid (usually 30–60 days after meeting requirements) before you can confidently assess your next move — though you can open a new sacrificial account in the meantime.
Will switching multiple times hurt my credit score? Each new account application creates a hard credit search, which can temporarily dip your score by a few points. For most people, this recovers within a few months and has no material impact on borrowing. If you're planning to apply for a mortgage in the next 6–12 months, it's worth being more cautious — but for general switching, the effect is minimal.
Can I switch back to a bank I've used before? Yes, once their cooling-off period has passed. This varies by bank — typically 12 to 36 months. Check with the specific bank or use our eligibility checker to see where you stand.
Is the switch bonus taxable? Technically, HMRC considers switch bonuses to be taxable income. In practice, most people won't owe anything because the amounts fall within the Personal Savings Allowance (£1,000 for basic-rate taxpayers, £500 for higher-rate). But it's worth keeping track of your total interest and bonus income across the tax year.
Start Your 2020 Switching Plan
January is the perfect time to get organised. Check which offers you're eligible for on our live offers page, read through the switching guide if you're new to this, and make 2020 the year you actually get paid for having a bank account.
Read our complete guides: Bank Switching: The Complete UK Guide | Stoozing Guide | Regular Savers Guide