May 2020 is turning into a solid month for bank switching. With the market still adjusting to the pandemic and people reassessing their finances, several banks are pushing genuinely competitive bonuses to attract switchers. If you've been sitting on the fence about moving your current account, now's a good time to pay attention.
Let's walk through what's available right now and help you figure out which offers are actually worth your time.
The Top Offers This Month
There's good news: May has some of the strongest bonuses we've seen in a few months. Three banks are currently competing hard for your custom.
The Leaders
TSB, Nationwide, and a couple of others are offering £1,500 to switch. That's the headline number you'll see splashed across comparison sites, and it's legitimate. These aren't obscure regional offers—they're available to most UK adults who meet basic criteria.
Virgin Money is close behind at £1,000, which is still a very respectable bonus. Then you've got the mid-tier options: RBS and NatWest both sitting at £175, HSBC at £150, and Halifax and Lloyds at £125 each.
There are also smaller bonuses down to £100 and below, but honestly, if you're going through the hassle of switching, you want one of the bigger offers.
Worth noting: These figures come from verified data via Money Saving Expert and various switching schemes. Always check eligibility requirements—some bonuses have minimum deposit thresholds or require setting up direct debit guides before they'll pay out.
Breaking Down the Tiers
Understanding the offer landscape helps you make smarter decisions, especially if you're planning multiple switches over the next year.
The £1,500 Tier
If you can get a £1,500 offer, you should seriously consider it. That's roughly £125 per month for a year of extra income—equivalent to a 3% interest rate on a £50,000 savings account. The switching process itself takes about 7 working days and is completely free.
TSB and Nationwide are both established, regulated banks. If you're building a bank switching strategy, these are your anchor offers. Yes, you'll need to meet their criteria (proof of income, active direct debits, etc.), but that's standard. The time investment is minimal compare bank bonusesd to the reward.
The £1,000–£250 Range
Virgin Money at £1,000 is worth considering if the £1,500 offers don't work for you. Some people hit eligibility walls with the biggest bonus banks—maybe you haven't got enough direct debits running, or you're below their minimum salary threshold.
The mid-range offers (£250–£175) are trickier. RBS and NatWest both offer £175. That's not trivial money, but it's also not transformative. If you're already comfortable with your current bank and switching would be disruptive, a £175 bonus might not justify the admin. However, if you were already considering moving—perhaps because of poor customer service or low savings interest—it tips the scales.
The Small Bonuses (£125 and Below)
Halifax, Lloyds, and First Direct are all in this zone. These are banks that are maintaining a presence in the switching market without aggressively competing. If the service is genuinely better, or if they offer other perks (like fee-free overdrafts or good regular saver rates), then the smaller bonus is just a cherry on top.
But if you're switching purely for the money? There are better targets right now.
Which Offer Is Right for You?
This depends on your situation, and it's worth thinking through properly.
If you're new to switching: Go for one of the big offers. TSB or Nationwide at £1,500 will teach you the process, and the reward justifies the effort. Once you've done it once, you'll realise it's painless and you can build it into a regular rhythm. Check our eligibility checker to confirm you qualify before applying.
If you've already switched once and enjoyed it: Virgin Money at £1,000 is a solid second switch. Spacing switches out over several months means you get multiple bonuses without overcomplicating your banking. Some people do 4–6 switches per year and treat it as a formal income stream.
If you want bonus money but hate paperwork: Be honest about how much admin you can tolerate. If the thought of changing all your direct debits makes you want to scream, maybe skip the switches entirely and focus on other ways to earn from your banking—like regular saver accounts or stoozing with 0% credit cards.
If you're chasing maximum earnings: This is where the strategy gets interesting. You can combine bank switching with other tactics. While you're cooling-off checker between switches (most schemes have 30-day minimum intervals), you could be building a regular saver account or earning interest on a 0% balance transfer. The true earners layer these strategies.
The Hidden Value Beyond the Bonus
The bonus is headline-grabbing, but it's not the only value you get from switching.
Some banks—particularly Virgin Money—bundle additional perks. We've seen offers that include travel and breakdown cover worth £500+ per year. That's genuinely useful insurance wrapped into your current account decision.
Other banks offer preferential rates on mortgages or savings accounts to switchers. That's not direct bonus money, but if you're about to apply for a mortgage, being a recent switcher at a bank with competitive rates can add thousands to your bottom line.
And then there's the psychological win: if your current bank has been charging you fees, offering poor savings rates, or providing rubbish customer service, switching gets you out of that trap. The £1,500 feels less like "free money" and more like "finally getting paid what I'm worth."
Planning Your Switches Strategically
Here's the thing about May 2020: offers come and go. The banks offering £1,500 right now might drop to £1,000 in June. Conversely, if you wait until July, someone else might be matching or beating them.
But you can't switch to the same bank repeatedly just for bonuses. The schemes have rules: usually, you need to wait at least a year before switching back, or sometimes longer. That's why strategic planning matters.
A sensible approach:
- Switch to TSB or Nationwide this month and pocket £1,500.
- Set a calendar reminder for 30 days post-switch (after the cooling-off period) to plan your next move.
- If Virgin Money's offer is still live in June, switch there for £1,000.
- While waiting out the switching cooldowns, start a regular saver account with a high-rate provider. You can earn 4–7% on balances of £50–£200 per month.
- Once you're eligible to switch again, pick the next highest offer available.
This approach turns switching into a genuine income system rather than a one-off win. Some people earn £2,000–£3,000 per year by being systematic about it.
Making the Switch Count
Here's what makes switching work:
Timing: Do it during a calm period. Don't switch right before a mortgage application (lenders see multiple current accounts as risky) or during a house move (you'll want stability). May is actually decent timing—you're past spring tax madness and not yet in summer holiday chaos.
Bonus requirements: Read the terms. Most bonuses require:
- A minimum number of direct debits (often 3–5) on the new account
- Those debits to run successfully
- Sometimes a minimum deposit (£500, £1,000, or similar)
These aren't gotchas—they're just normal. Set up your direct debits, let them run cleanly, and the bonus hits automatically.
The actual process: Old bank transfers to new bank via Faster Payments, your new bank handles contacting the old one to close things down, everything settles in 7 working days. No missed payments, no stress.
Tax: Switch bonuses are not taxable. If you've earned interest on savings, that's taxable (but most people's interest is below the Personal Savings Allowance). If you're earning from stoozing or regular savers, those interest earnings do count as income. Keep records just in case.
Common Questions
Can I switch if I'm in my overdraft?
Yes. The switching service handles overdrafts cleanly. Your overdraft balance moves with you, and if the new bank offers a better rate, you might actually save money. Just give yourself a few weeks to get above zero if possible—it's cleaner operationally.
What if I can't meet the direct debit requirement?
Some banks are flexible, especially if you've got standing orders or regular transfers instead. But if you truly can't set up direct debits, check the smaller offers—some banks are less stringent. Alternatively, focus on regular savers and 0% credit cards for now, and revisit switching in a few months once your situation changes.
Do I have to move all my money at once?
No. You can keep your old account open for a bit and shift money over gradually. However, the bonus usually requires you to close the old account within a set timeframe (typically 30 days post-switch). Just plan for that end date.
Is switching bad for my credit score?
No. The switching service explicitly doesn't impact your credit file negatively. You'll see a hard credit check (which does create a brief footprint), but multiple checks in short succession don't hurt as much as people think. Soft checks don't show up at all. If you're planning a mortgage in the next 6 months, space out your switches, but otherwise, don't worry.
Can I do this indefinitely?
Theoretically, yes, but there are practical limits. You can usually only earn one bonus per bank every 12 months. Some banks (particularly the "premium" ones like First Direct) have stricter rules. And lenders don't like seeing 10 active current accounts—it raises fraud flags. Aim for 4–6 per year and you'll be fine.
Check our live offers page for current bonuses, and use our switching guide to plan your next move. May's offers are solid, and the momentum is in your favour right now.