If you've looked into bank switching, you've probably noticed something annoying: most banks require you to set up at least two direct debit guides before you can claim your switch bonus. It's their way of ensuring you're genuinely moving your banking over to them, not just opening an account for a quick payday.
The problem? You might not have two direct debits. Or maybe you do, but moving them feels like a hassle. That's where cheap direct debits come in.
This isn't some sketchy hack — it's a legitimate strategy that thousands of people use every month. You set up inexpensive, useful direct debits that genuinely help your finances, tick the bank's requirements, and unlock bonuses that can be worth £100+ per switch. Let me walk you through exactly how it works.
Why Banks Require Direct Debits (and Why That's Good News)
Banks care about direct debits because they show genuine account engagement. Someone who moves their bills and subscriptions over is a serious customer. Someone who just parks £100 in an account to claim a bonus and then vanishes? That's not valuable to a bank.
But here's the thing: banks don't care which direct debits you set up, or how much they cost. You could set up a charity donation for £2 a month and a gym membership for £15 a month, and you've met the requirement just as well as someone paying £800 in household bills.
This means there's a gap between what banks expect and what's actually required. Smart switchers exploit that gap.
Finding Cheap Direct Debits That Actually Make Sense
The key to this strategy is finding direct debits that are genuinely useful to you, not just random charges that drain your account. You want them cheap, easy to set up, and something you'd actually be happy to keep paying if you wanted to.
Charity Donations
Donating to charity via direct debit is straightforward and genuinely helpful. Most major charities let you set up donations from £1 per month. Some popular options:
- Comic Relief, Children in Need, or other large charities: Usually allow monthly donations from £1-5. You can cancel anytime online.
- Local food banks or community projects: Often welcome donations of any size.
- Smaller charities aligned with your values: Many animal shelters, mental health charities, and environmental organisations accept very small monthly donations.
The beauty here is that cancelling after you've met the switching requirement is guilt-free (well, reasonably so) — you can always restart donations later during charity campaigns.
Subscriptions and Memberships
Before you dismiss this, think about what you already pay for:
- Gym or fitness: Many gyms cost £15-30 per month. If you've been meaning to get fit, this is perfect.
- Streaming services: Netflix, Spotify, etc. cost £10-15. You might use them anyway.
- Apps and software: Many people don't realise their phone has an app subscription they're paying for. Check your current direct debits — you might already have something here.
- Magazine or newspaper subscriptions: Digital subscriptions often start at £5-10 monthly.
The advantage of subscriptions is that they're easy to cancel online, and they're genuinely things you might use. A gym you don't visit costs money, but at least it's a real service.
Low-Cost Insurance and Protection
Some insurers offer very low-cost options:
- Mobile phone insurance: Often £3-8 per month through your provider.
- Phone breakdown cover: Usually around £5 per month.
- Pet insurance: If you have a pet, this is essential anyway. If not, skip this.
Annual Payments Made Monthly
You can convert annual subscriptions to monthly ones if the provider allows. Car insurance, home insurance, and other annual payments sometimes break down to monthly direct debits — and you might save money by spreading the cost anyway.
The Strategic Approach: Planning Your Direct Debits
Here's where it gets clever. Rather than randomly choosing cheap debits, think strategically about your bigger plans.
For Your First Switch
Most switches require 2 direct debits. You might already have one (council tax, rent, a bill). Find one other cheap debit — maybe a £2 charity donation. Done.
For Your Second and Third Switches
Now you're thinking bigger. You've already got 2-3 debits running. Many banks let you earn multiple bonuses if you switch again after the cooling-off checker period.
Here's the question: should you set up new debits for the next switch, or move your existing ones? It depends:
- Moving existing debits: Hassle-free, but you need to notify each provider. Some take time to process.
- Setting up new debits: Faster for meeting new bank requirements, but you're adding more subscriptions.
A smart strategy is to have 4-5 useful debits set up by default, and then rotate which ones you move to your new switching bank. That way you're not constantly adding and removing things.
The Cooling-Off Period Advantage
Between each bank switch, you're in a cooling-off period where you can't earn another bonus. But you can use this time to:
- Get new direct debits set up and running
- Cancel ones you don't want anymore
- Let processes settle
This breathing room is actually valuable for planning.
Avoiding Common Mistakes
Mistake #1: Forgetting You Set Them Up
You set up a £5 monthly charity donation to qualify for a switch bonus, get the bonus, and then forget about it. Six months later you're wondering why you're still being charged.
Solution: Set a phone reminder or note in your calendar to review your direct debits monthly. Most banks show you everything in one place now.
Mistake #2: Setting Up Too Many
It's tempting to sign up for five subscriptions to cover all your bases for future switches. But then you're paying £30-40 monthly for things you don't actually use.
Solution: Be intentional. Set up 2-3 that you'll genuinely keep, and add more only when you're actually planning your next switch.
Mistake #3: Not Checking Cancellation Terms
Some subscriptions renew automatically and charge for months before you notice. Others have cancellation fees.
Solution: Before signing up, find the cancellation page and make sure it's simple. Most modern services let you cancel online immediately. If you can't find a cancellation page, don't sign up.
Mistake #4: Forgetting the Actual Purpose
You're setting up direct debits to unlock switch bonuses. But the bonus is only valuable if you've actually moved your account and met the requirements. Getting three charity subscriptions running doesn't matter if you never actually switch.
Solution: Be clear on your switching plan before you set up debits. Know which bank you're switching to, when you're switching, and exactly what their requirements are.
A Practical Example
Let's say you're planning two bank switches in the next year:
Switch 1 (this month): You already have council tax set up. You need one more debit.
- Action: Set up a £2/month charity donation.
- Cost to you: £2/month
- Bonus unlocked: £100+
- ROI: You earn the bonus, and £24/year goes to charity. Net gain: ~£100.
Cooling-off period (14 days to 60 days depending on your choice):
- Your first switch is pending. You're now at your new bank.
- Action: Leave the charity donation running. Don't add anything new yet.
Switch 2 (after cooling-off period):
- You need 2 debits again for your new bank. You still have the charity donation. You need one more.
- Action: Set up a £5/month gym membership (you've been meaning to get fit anyway).
- Cost to you: An additional £5/month
- Bonus unlocked: Another £100+
- Net position after two switches: You've earned ~£200 in bonuses, you're donating £2/month to charity, paying £5/month for gym. That's a win, especially if you use the gym.
The Math That Matters
This is why the strategy actually works:
- Average bank switch bonus: £100-150 (check /offers for current deals)
- Cost of 2 cheap direct debits: £2-20 per month
- Time to set up: 15-20 minutes
- Return on time investment: Absolutely worth it
Even if you keep those debits running for 6 months (far longer than you need to), and then cancel them, you've still made a huge return. And if you're smart about it, you choose debits you'd keep anyway.
Where to Look for More Information
Every bank has different switching requirements, and offers change constantly. Before you start:
- Check /offers to see current switch bonuses and their requirements
- Use our eligibility checker to see which banks you can switch to
- Read our full switching guide for step-by-step instructions
Common Questions
Can I set up direct debits and then cancel them immediately after the bonus clears?
Technically yes, but I wouldn't recommend it. Most banks have a system that flags suspicious activity. If you set up 3 direct debits, claim your bonus on day 8, and cancel all 3 on day 9, that looks dodgy. The safer approach is to let them run for at least a few months, or until the bank confirms your bonus has been paid. Then cancel if you want to.
What if I don't have a bank account to set up a charity donation?
You need a bank account to receive a bonus, so you'll definitely have at least one. Setting up direct debits from that account is straightforward — charities will guide you through it, or you can set it up online in your banking app.
Do direct debits affect my credit score?
Not negatively. Setting up a direct debit shows you're managing multiple commitments responsibly. Just don't set up so many that you can't afford them — missed payments would hurt your score. If you're only setting up 2-4 cheap debits, you'll be fine.
Can I set up the same direct debit at multiple banks?
Yes. The direct debit itself doesn't care which bank it comes from. So you could have a £2/month charity donation running from Bank A and Bank B simultaneously if you wanted to. (Though usually you won't, since you're switching between them.)
What's the best type of direct debit to set up?
The best one is the one you'll actually use or won't mind having run. A gym membership if you go to the gym. A charity donation if you support that cause. A subscription to something you'd genuinely pay for. Avoid setting up random things you'll never use — it just clutters your finances and makes cancellation more hassle later.
Want to maximise your bank switching earnings? Start by checking what bonuses are available right now on our live offers page, then use our switching guide to plan your moves. The direct debit strategy is just one part of earning seriously from banking — when you combine it with stoozing and regular saverss, the numbers get genuinely exciting.