If you've been switching banks for bonuses this year — and frankly, it's been one of the few reliable ways to boost your income in 2020 — you've probably bumped into the concept of a "cooling-off period." It's the enforced waiting time between switches before a bank will pay you another bonus.
Understanding how these periods work isn't just academic. If you get the timing wrong, you can complete an entire switch — moving your direct debits, salary, and standing orders — only to discover you don't qualify for the bonus. That's a lot of hassle for nothing.
With 2021 around the corner, now is the perfect time to map out your switching strategy. Let's get into the detail.
What Exactly Is a Cooling-Off Period?
A cooling-off period is the minimum time a bank requires you to have been away before they'll pay you a switching bonus again. It's the bank's way of stopping people from endlessly cycling between two accounts to collect bonuses every few months.
Here's how it typically works:
- You switch away from Bank A to Bank B using the Current Account Switch Service (CASS).
- You collect Bank B's bonus (if they're offering one).
- Some time passes.
- You want to switch back to Bank A for another bonus.
- Bank A checks how long it's been since you last held an account with them. If it hasn't been long enough, no bonus.
The key thing to understand is that the clock usually starts from when you closed your previous account with that bank — which, under CASS, happens automatically when you switch away. Some banks measure it differently (from when you last received a bonus, or from when you last held any product with them), but the closure date is the most common starting point.
How Long Do You Actually Have to Wait?
This is where it gets interesting, because there's no standard. Each bank sets its own rules, and they change them periodically. As of late 2020, here's the general landscape:
12 months is the most common cooling-off period. Many of the major banks — including those currently listing accounts on comparison sites — require you to have been away for at least a year before you're eligible for a new switching bonus.
24 months is becoming more common as banks try to discourage serial switchers. Some banks have moved to this longer window, particularly for their more generous offers.
"Never held an account" is the strictest condition. A handful of offers are genuinely for new customers only — meaning if you've ever banked with them, you're out of luck. These are less common but worth watching for.
No cooling-off period — rare, but it happens. Occasionally a bank will run a promotion that's open to returning customers with no minimum absence. These are gold dust for serial switchers.
The critical point: always read the terms and conditions of the specific offer before you switch. The eligibility criteria are buried in the small print, and they can differ even between accounts at the same bank. You can check our eligibility checker to help you work out which offers you qualify for right now.
Why the Terms Matter More Than You Think
Let's say you switched away from a bank in March 2020. You might assume that by March 2021, you'd be eligible again for a 12-month cooling-off offer. But the devil is in the detail:
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"Not held an account in the last 12 months" — this means 12 months since your account was closed. Under CASS, this is typically the completion date of your switch, which is usually 7 working days after you initiate it.
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"Not received a switching incentive in the last 12 months" — subtly different. This measures from when the bonus was paid, not when you left. If the bank took 30 days to pay your bonus after your last switch, your 12-month clock started later than you might think.
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"Not held a current account or a [specific product] in the last 12 months" — some banks extend the restriction to include other products. If you hold a savings account or credit card with them, you might not qualify even if you closed your current account ages ago.
These distinctions matter. Getting one wrong could mean wasting a switch — and since you can typically only have one CASS switch in progress at a time, a wasted switch costs you both time and money.
Planning Your 2021 Switching Calendar
As we head into 2021, here's how to build a switching strategy that respects cooling-off periods while maximising your earnings.
Step 1: Audit Your Switching History
Go through your records and note down:
- Every bank you've switched to and from
- The date each switch completed (check your emails for CASS confirmation)
- The date each bonus was paid
- Any other products you currently hold with each bank (savings accounts, credit cards, loans)
If you've been switching throughout 2020, you might have something like this:
| Switch | Completed | Bonus Paid | Earliest Re-eligibility (12 months) |
|---|---|---|---|
| Switched from A to B | Jan 2020 | Feb 2020 | Jan 2021 (from A) |
| Switched from B to C | May 2020 | Jun 2020 | May 2021 (from B) |
| Switched from C to D | Sep 2020 | Oct 2020 | Sep 2021 (from C) |
Step 2: Identify Your Options for Q1 2021
Looking at the accounts currently available — including Nationwide FlexDirect with its 2% AER interest, and Barclays Bank Account — check whether you're eligible based on your history. If you've never held accounts with these banks, you're in a strong position. If you have, count the months.
Check our live offers page for the latest deals and their specific eligibility requirements.
Step 3: Space Your Switches Strategically
The optimal switching frequency depends on what's available, but as a general rule:
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Switch every 3-4 months if there are enough eligible offers. This gives you time to meet any minimum requirements (like paying in a certain amount or setting up direct debits) while keeping the momentum going.
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Don't switch just to switch. If there's no bonus available that you're eligible for, it's better to stay put and earn any in-credit interest (like Nationwide FlexDirect's 2% AER on the first £1,500) than to switch to a zero-interest account for no reward.
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Keep a "parking" account. Have a basic account with a bank that doesn't typically offer switching bonuses. You can switch to this when you need to start a cooling-off clock with a bank you want to return to later, without wasting a switch on a bank you might want to switch away from for a bonus in future.
Step 4: Track Everything
This sounds boring, but it's the difference between earning hundreds and wasting your time. A simple spreadsheet with switch dates, bonus payment dates, and cooling-off expiry dates will save you from making expensive mistakes.
The "Parking Account" Strategy in Detail
This deserves its own section because it's one of the most useful techniques for serious bank switchers.
The idea is simple: you maintain a basic current account with a bank or building society that rarely (or never) offers switching bonuses. When you need to leave a bank to start a cooling-off period, you switch to this parking account rather than burning a switch to a bank you might want to claim a bonus from later.
Good parking accounts tend to be:
- Free, with no monthly fees
- From banks or building societies that don't typically run switching promotions
- Easy to manage with minimal requirements
Once you're parked, your cooling-off clocks are ticking with every bank you've previously left. When one of them launches a new offer and your cooling-off period has expired, you switch from your parking account to claim the bonus.
The downside? You might miss out on in-credit interest while parked. With rates as low as they are right now — the Bank of England base rate is at 0.1% — this cost is minimal. But it's still worth considering, especially if you could be earning 2% AER with Nationwide FlexDirect on your first £1,500 during that time.
What Happens If You Get It Wrong?
If you switch to a bank and don't meet the cooling-off eligibility, a few things might happen:
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You simply don't get the bonus. The switch itself will still go through — CASS doesn't check bonus eligibility. Your direct debits will move, your old account will close, but no bonus lands in your account.
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You've wasted a switch. You'll now need to switch again to move on to an eligible offer, and that takes another 7 working days minimum.
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You've reset the clock. Here's the really annoying part — by opening and then closing an account with that bank again, you may have reset your cooling-off period. You'll need to wait another 12-24 months before trying again.
This is why checking eligibility beforehand is so important. Use our eligibility checker and always read the offer terms before initiating a switch.
Combining Cooling-Off Planning with Other Strategies
Bank switching is powerful on its own, but it works even better when combined with other approaches. While you're waiting out a cooling-off period:
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Open regular saver accounts with your current bank. Several banks offer these to existing customers, and the rates can be significantly better than standard savings accounts. Check what's available with whichever bank you're currently with.
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Consider stoozing. If you can get a 0% purchase or balance transfer credit card, you can put your everyday spending on it, keep your cash in a savings account earning interest, and pay off the card before the 0% period ends. Read our guide on how stoozing works for the full breakdown.
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Stack your strategies. The most effective approach is to have bank switching, stoozing, and regular savers all running simultaneously. Each one operates on different timelines, so while you're cooling off from one bank, you're earning from the other strategies.
Our switching guide walks you through how to set all of this up step by step.
Looking Ahead to 2021
2020 has been an unusual year for bank switching. Some banks pulled their offers during the early months of the pandemic, though most have returned to some form of incentive by now. The accounts currently available — including options from Nationwide, Barclays, Santander, and others — suggest that banks are still competing for current account customers.
If you've been switching throughout 2020, some of your cooling-off periods will start expiring in early 2021. That means the banks you switched away from at the start of the year could be back on the table. It's a good time to review your history and start planning your next moves.
And if you're new to all of this? December is actually a great time to start. You can make your first switch now, and by the time the bonus lands in January, you'll already be thinking about your next one. Head to our live offers page to see what's available today.
Common Questions
Do all banks have cooling-off periods? Most banks that offer switching bonuses have some form of eligibility restriction for returning customers. The specifics vary — some require 12 months, others 24, and some offers are genuinely for brand-new customers only. Always check the terms of the specific offer you're interested in. A few promotional offers occasionally waive the cooling-off requirement entirely, but these are uncommon.
Does the cooling-off period start when I switch away, or when the bonus is paid? It depends on the bank. Most measure from when you ceased to hold an account with them (i.e., when your switch completed and the old account closed). However, some measure from when the switching incentive was last paid. The difference could be a few weeks, which matters if you're right on the boundary. Check the specific wording in the offer terms.
Can I speed up a cooling-off period by closing my account manually instead of switching? The clock starts when the account closes, regardless of whether it was closed via CASS or manually. So closing an account manually and then later switching from a different account to claim a bonus can work — but only if you meet the minimum absence period. There's no shortcut to make the cooling-off period itself shorter.
If I hold a savings account with a bank, does that affect my cooling-off eligibility? Potentially, yes. Some offers specify that you must not have held "any account" with the bank, not just a current account. Others are specifically about current accounts only. If you have a savings account, credit card, or other product with a bank, read the offer terms carefully before assuming you're eligible for a switching bonus.
Is there a maximum number of times I can switch to the same bank? There's no formal limit under the Current Account Switch Service — you can use CASS as many times as you like. However, each bank decides independently whether to pay you a bonus, and they track your history. In practice, most banks will keep paying the bonus each time you meet the eligibility criteria, including the cooling-off period. But banks can and do change their terms, so an offer that was available last year might have different conditions this year.