The March 2021 Bank Switching Landscape
Spring's here, and with it comes new financial opportunities. If you've been sitting on the same current account for a while, March 2021 is an excellent time to review what's available. The switch bonus market is healthy right now, with offers ranging from £30 all the way up to £1500 depending on which bank you choose and what conditions you can meet.
This guide walks you through what's currently available, how to actually qualify for these bonuses, and—most importantly—how to stack multiple income streams to turn a bank switch into a proper money-making exercise.
Current March 2021 Switch Offers: The Full Picture
Let's start with what's actually out there. Rather than listing random offers, I'm going to categorise them by value so you can understand what tier you might realistically hit.
The Premium Tier (£750–£1500)
Right now, the top offers are hitting £1500 and £1000. These aren't from some obscure bank either—these are legitimate current accounts from recognisable institutions. To hit these, you'll typically need to:
- Complete a CASS switch (mandatory for all bonuses anyway)
- Set up 2–3 active direct debit guides
- Potentially maintain a minimum balance during a qualification period
The £1500 offer is genuinely the top of the market right now. If you can meet those requirements, it's worth your time to switch just for that single bonus.
The Middle Ground (£100–£250)
Below the premium tier, you've got a decent cluster of offers in the £100–£250 range. This is where you'll find most banks competing. The entry requirements are usually similar (CASS plus direct debits), but some of these may have lower balance requirements or less stringent qualification periods. A £250 bonus is a solid mid-tier offer, and £125 is another common tier you'll see regularly.
Creative Alternatives
Not every bonus is purely cash. Some banks are offering alternative perks:
- Virgin Wines: £138 in free bottles (which, if you were going to buy wine anyway, is basically free money)
- Travel and mobile cover: £500+ per year value included with some accounts
- Interest-free overdrafts: £250 interest-free borrowing alongside cash bonuses
None of these are knock-your-socks-off offers individually, but they illustrate that banks are competing on multiple dimensions, not just pure bonus amount.
For the complete, up-to-date list with all the specific terms, head to our live offers page where we track every available offer in real-time.
How to Actually Qualify for These Bonuses
This is where people often get confused. The bonuses sound great until you realise you need to jump through hoops to get them. Let's be clear about what those hoops actually involve.
Step 1: The CASS Switch
This is mandatory and actually quite straightforward. CASS stands for Current Account Switch Service. Here's what it does:
- It's a free, regulated service that moves your account from your old bank to your new one
- Takes exactly 7 working days
- Automatically redirects all your standing orders and direct debits
- Your old account stays open for 13 months so any incoming payments can still be redirected
Importantly, the bank you're switching to handles all of this. You don't do anything except give them permission. Once you've initiated a CASS switch, you've basically done the hardest part already.
Step 2: Direct Debit Requirements
Most bonuses (especially the higher ones) require you to set up active direct debits. Typically:
- 2–3 active direct debits running for 2–3 months
- They need to be genuine, not fake ones
- They need to be "active"—meaning debits are actually going through during the qualification period
This is where people get stuck. You might not have 2–3 bills to put on direct debit. Maybe you pay everything on a credit card, or you've got most things already on direct debit at your old bank.
Solution: set up new direct debits. This doesn't mean expensive bills. Direct debits can be charity donations (often £1 per month minimum), magazine subscriptions (£10–15 per month), streaming services like Spotify (if you were going to subscribe anyway), gym memberships, phone contracts, or insurance. Many people set these up specifically for switch bonuses and cancel after the qualification period.
Our switching guide has detailed advice on finding cheap, legitimate direct debits that actually work.
Step 3: Balance and Timeframe Requirements
Some offers have secondary conditions: maintain a minimum balance (often £1000–£2000) for a set period, keep the account open for a minimum timeframe, or the bonus pays after 2–3 months rather than immediately. These vary significantly by bank, so always read the fine print before switching.
The Stoozing Angle: Making Bank Switching Much More Profitable
Here's the thing about the bonuses listed above: they're good, but they're even better when combined with stoozing.
If you've never heard of stoozing, it's simple: use a 0% credit card to temporarily hold money while it earns interest in your current account. Since the credit card charges you nothing (0% interest), you keep all the earned interest. It's one of the most underrated money-making tactics available.
How It Works
- You get a 0% credit card offer (there are several available right now with 15–25 month 0% periods)
- You put money on that card—let's say £2000
- You transfer it to your new current account (you can do this via a cash withdrawal or bank transfer, depending on the card)
- That £2000 now sits in your current account earning interest
- You pay off the credit card balance monthly from your current account, using its own interest earnings plus a bit of your salary
- After the 0% period ends, you've earned interest on £2000 without paying any credit card interest charges
The Real Money Example
Let's say you:
- Switch to a new bank on March 1st and earn £1000 bonus
- Put £2000 on a 0% card at 15 months interest-free
- Earn roughly £30–50 in interest while the money sits there over the next 6 months
- Your bonus arrives after 2 months: another £1000
- After the cooling-off checker period (30 days), switch to another bank: another £1000
Total in 2 months: £2000+ in bonuses, plus £30–50 earned interest.
This is why stoozing combined with switching is so powerful. You're not just getting a bonus; you're creating an interest-earning machine. Our how stoozing works guide goes into much more detail, but the basic principle is this: stoozing turns your switch bonuses into interest-earning accounts, multiplying your returns.
March 2021: The Timing Question
Why switch in March specifically? A few reasons.
Tax Year Alignment
The UK tax year runs from 6 April to 5 April. We're currently in the 2020/21 tax year, which ends on 5 April. If you switch now and earn interest before 5 April, you can track it separately from next year's tax year earnings. Switch bonuses themselves aren't taxable (they're gifts, not interest), but any interest you earn is—so timing can matter if you're close to your Personal Savings Allowance limit.
Cooling-Off Periods
Most banks have 30-day cooling-off periods. Switch in early March, and you can switch again in early April without penalty. This stacks your bonuses nicely across the tax year boundary, allowing you to plan multiple switches strategically.
Spring Reset Mentality
March is mentally when people think about financial fresh starts. Your old bank might be charging you for things (overdraft fees, poor interest rates) that you've gotten used to. Spring is a natural time to switch and reclaim some of that money.
Important Things to Remember
Your Credit Score Won't Tank
Switching triggers a credit check, but it's usually a soft check that doesn't show on your credit file. Hard checks (the ones that affect your score) are usually only done by lenders. Bank switching checks are typically soft and won't damage your credit profile.
You Can Switch Multiple Times Per Year
There's no rule against switching twice, three times, or more per year. The only limitation is bonus eligibility—you can typically get one bonus per account per calendar year, and you can't get the same bonus twice within 12 months. switch planneres strategically across the year to maximise earnings.
The Bonus Is Guaranteed (Usually)
Once you've completed the CASS switch and met the direct debit requirements, the bonus is almost always guaranteed. Banks occasionally withdraw offers entirely, but they don't claw back bonuses already earned. You're protected once you've met the conditions.
Common Questions
Can I switch if I've got an overdraft on my current account?
Usually yes, but the balance will transfer with you. Check with your new bank that they'll honour any existing overdraft arrangements. You might need to sort out the overdraft first if it's large.
What happens to my old bank account after I switch?
It stays open for 13 months, continuing to redirect payments. After that, it closes automatically. You can ask your old bank to close it earlier if you prefer, though it's usually simpler to just leave it.
Can I combine multiple switch bonuses in the same month?
Not really—you can only complete one CASS switch every 13 months per account, though you can use multiple different accounts if you have them. The cooling-off period also prevents you from switching back to the same account within 30 days.
Are switch bonuses taxed?
No. Switch bonuses are treated as gifts, not taxable income. However, any interest you earn while the money sits in your account is taxable. Track it separately to keep things clean come self-assessment time.
What's the best way to approach multiple switches in a year?
Plan them around the cooling-off periods and tax year boundaries. Switch in January (bonus arrives March), switch in April (bonus arrives June), and so on. Space them out and use each period to build your stoozing income. Use our eligibility checker to confirm you're eligible before applying to each new bank.