Three months ago, everything changed. The Bank of England slashed the base rate to 0.1% in March, lockdown shut the country down, and suddenly the world of personal finance looked very different. Savings rates have cratered. Premium Bond prizes have been cut. Easy-access accounts that were paying 1.5% in January are now offering 0.5% or less.
But here's the thing: bank switch bonuses haven't disappeared. In fact, they're now one of the most reliable ways to earn a meaningful return on your time. When a savings account pays you £5 a year on £1,000, a single bank switch paying £125–£175 is the equivalent of decades of interest. The maths has never been more lopsided in favour of switching.
Here's your complete guide to what's available this month, how to make the most of it, and why switching matters more than ever in a low-rate world.
What's Available in June 2020
The switching market has held up surprisingly well through the pandemic. Several banks are still actively competing for current account customers, and the Current Account Switch Service (CASS) has continued to operate throughout lockdown — you can do the entire process online from your sofa.
Here's what we're seeing right now:
The headline offers:
- RBS is offering £175 to switch — one of the strongest straightforward cash bonuses available right now.
- NatWest is also at £175, which makes sense given they're part of the same banking group. You can only claim one of these, so pick whichever account suits you better.
- HSBC is offering £150 to switch, a solid mid-tier offer with the backing of one of the UK's largest banks.
The solid mid-range:
- Halifax has a £125 switching bonus — they've been a reliable presence in the switching market for years, and June is no exception.
- Lloyds is also at £125. Same banking group as Halifax, so again, you'll want to pick one rather than trying both.
Still worth doing:
- First Direct is offering £100 to switch. First Direct consistently ranks as the UK's best bank for customer service, so you're getting a genuinely good account alongside the bonus.
Also running offers:
- TSB, Nationwide, and Virgin Money all have switching incentives available. The exact terms and amounts vary, so check our live offers page for the current details on these — offers have been shifting more frequently than usual since March as banks adjust to the new economic reality.
That's a lot of options. If you're new to this, the RBS or NatWest £175 offer is the obvious starting point — it's the highest guaranteed cash bonus on the table. If you've already claimed those, work your way down the list.
Use our eligibility checker to see which offers you qualify for before applying.
Why Switching Matters More Than Ever
Let's put these numbers in perspective. Before COVID, you could get 1.5% on an easy-access savings account without trying very hard. On £10,000, that's £150 a year. Unexciting, but at least your money was doing something.
Now? The best easy-access rates have plummeted. Many accounts are paying 0.5% or less, and some are headed towards zero. On that same £10,000, you're looking at £50 a year — maybe less by the time summer's over.
A single bank switch to RBS at £175 pays you more than parking £10,000 in a savings account for three and a half years at current rates. And it takes about 20 minutes of your time.
Do three or four switches this year and you're looking at £400–£600 in bonuses. That's the kind of return you'd need £100,000+ in savings to generate at 0.5%.
This isn't a theoretical exercise. This is real money, sitting on the table, waiting to be collected. The only barrier is actually doing it.
A practical example:
Let's say you start switching today. Here's what your summer could look like:
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June: Switch to RBS for £175. Set up two direct debits (a couple of £1/month charity donations work perfectly — see our switching guide for the cheapest options) and arrange a monthly deposit of at least £1,250 via standing order or salary redirect.
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July: Your RBS switch completes, bonus criteria met. Open a new sacrificial account ready for switch number two. Target HSBC at £150.
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August: HSBC switch processes. You've now earned £325 in two months from approximately 40 minutes of actual effort. Meanwhile, research whether your new accounts unlock any regular saver deals.
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September onwards: Continue working down the list — Halifax or Lloyds at £125, then First Direct at £100. By Christmas, you could have earned £500+ just from switching.
If you're doing this as a couple, double everything. That's potentially over £1,000 by the end of the year.
The Post-COVID Switching Landscape
It's worth acknowledging that the pandemic has changed a few things about how switching works in practice.
The good news:
- CASS has operated throughout lockdown. The 7-working-day switching guarantee still applies.
- Banks are processing applications online as normal. You don't need to visit a branch to switch.
- Most banks have relaxed their ID verification requirements, accepting digital submissions where they previously required in-branch visits.
- Bonuses are still being paid on time, based on everything we're seeing from readers.
Things to watch:
- Some banks have temporarily withdrawn certain account types or features. An account that offered a linked regular saver in January might not offer the same deal today. Always check the current terms on our live offers page.
- Overdraft pricing has changed significantly. The FCA's new rules came into effect in April, and most banks now charge a flat interest rate (typically 39.9% EAR) on overdrafts. If you rely on an overdraft buffer, check the terms of any new account carefully before switching.
- Customer service wait times are longer than usual. If something goes wrong with your switch, be prepared to wait a bit longer on the phone. That said, CASS complaints can be escalated directly, and the guarantee means your payments will still be redirected regardless.
What about credit scores?
This is the question we get asked most often, and the answer hasn't changed: each bank switch creates a hard credit search on your file, which can temporarily reduce your score by a few points. It recovers within a few months.
However — and this is important — if you're worried about your employment situation or think you might need to borrow money in the coming months, you might want to be more cautious about stacking up multiple applications in quick succession. The switches themselves won't damage your score meaningfully, but if you're also applying for credit cards, loans, or mortgage forbearance, the cumulative effect of multiple hard searches could raise a flag.
For most people in stable employment, switch away without worry. If your situation is less certain, consider spacing your switches out a bit more than usual. We've written about this in detail in our credit score guide.
Beyond Switching: Stacking Your Returns
With savings rates in the gutter, switching bonuses are the headline act — but they're not the only game in town. Here are three ways to layer additional income on top of your switching strategy.
Regular saver accounts: Some of the banks you switch to will offer linked regular saver accounts at rates far above the market — typically 2.75% to 5% right now, though these have been coming down. You're limited to depositing £250–£500 per month, and the effective return is roughly half the headline rate (because you build the balance gradually), but it's still dramatically better than an easy-access account. Every time you complete a switch, check whether your new bank offers a regular saver and open one immediately.
Stoozing: This is the art of using 0% purchase or balance transfer credit cards to free up cash that earns interest elsewhere. In a world of ultra-low rates, the absolute returns from stoozing are smaller than they used to be — but 0% cards are still widely available, and any interest is better than no interest. If you've got a 0% purchase card, use it for everyday spending and keep the equivalent cash in the highest-paying account you can find. Read our full guide on how stoozing works.
Interest-paying current accounts: A few current accounts still pay meaningful interest on your balance. These are perfect as holding accounts between switches — park your money somewhere it earns while you wait for cooling-off periods to expire. Even 1% on a few thousand pounds adds up when the alternative is 0.1%.
The real power is in combining all three. Switch for the bonus. Open the regular saver. Stooze your spending. Park your cash in the highest-rate current account while you wait. Each piece adds incrementally, and together they can deliver returns that would require a massive savings balance to match at current interest rates.
Your June Action Plan
Here's what to do this week:
- Check the live offers page to see exactly what's available right now and confirm the current bonus amounts.
- Use the eligibility checker to find out which offers you qualify for. No point applying for something you can't get.
- Open a sacrificial account if you don't already have one. Any basic current account will do — you're going to switch away from it immediately.
- Set up two cheap direct debits. Small charity donations or subscription services work perfectly. Our switching guide has a complete list of the cheapest options.
- Initiate the switch through CASS. The whole process takes about 15–20 minutes online.
- Set a calendar reminder for when your bonus criteria will be met (usually 60 days after the switch completes). Then forget about it until the money lands.
If you've been sitting on the fence about bank switching, June 2020 is an excellent time to start. Savings rates are at historic lows, switching bonuses are still strong, and you can do everything from home. The gap between "money sitting in a savings account doing nothing" and "money working for you through switching" has never been wider.
Common Questions
Is it safe to switch banks during the pandemic? Yes. The Current Account Switch Service has operated normally throughout lockdown. The entire process is done online — no branch visits required. Your money is protected by the FSCS up to £85,000 per banking group, and the 7-working-day switch guarantee is contractual. The pandemic hasn't changed any of this.
Will switching bonuses disappear because of COVID? It's possible that some banks will reduce or withdraw their offers if they decide they don't need new customers, but so far the market has held up well. Banks still want current account customers because those customers tend to take out mortgages, loans, and insurance with the same bank. If anything, the argument for switching sooner rather than later is stronger — collect today's bonuses before any potential cuts.
Can I switch if I'm on furlough or my income has dropped? Generally, yes. Most switching offers require a minimum monthly deposit (typically £1,000–£1,750), but this can come from any source — it doesn't have to be your salary. A standing order from another account you hold works perfectly well. The bank just wants to see regular money coming in. If your income has dropped significantly, you might struggle with the deposit requirement, but a standing order that loops money between accounts can solve this.
Should I prioritise switching or building an emergency fund? Both, ideally. The standard advice is to have 3–6 months of essential expenses in an easily accessible account before doing anything else. But here's the thing — switching bonuses are essentially risk-free income. If you have even a small emergency fund, there's no reason not to switch alongside it. The bonus money can actually help build your emergency fund faster. A couple of switches could add £300–£400 to your savings buffer.
How do I keep track of all the different accounts? A simple spreadsheet works. Track the bank name, date you switched, bonus amount, minimum holding period, and when you're free to switch again. Alternatively, our switching guide has a template you can use. The key is knowing when cooling-off periods expire so you can plan your next move in advance.
Get started: Check our live offers page for this month's deals, or read the switching guide if you're new to bank switching.