By December 2022, something fundamental has shifted in UK banking. For years, bank switching was a clear slam-dunk decision: get a big bonus, do a bit of admin, move on. But now, with interest rates rising and the savings landscape changing week by week, the question people are actually asking is different. Is it still worth it?
Let's do the maths properly.
The Current Bonus Landscape
Right now, the offers are decent but no longer extraordinary. HSBC is offering £1,500 through uSwitch if you switch and set up a qualifying direct debit guide. NatWest and Starling are both at £1,200. These are solid numbers, but they're not what we saw earlier in the year when banks were competing fiercely. (Check our live offers page for current deals.)
On the surface, £1,500 sounds like a no-brainer. But let's dig into the actual value you're getting.
The Hidden Costs of Bank Switching
Here's what most switching guides don't properly account for: your time is money, and cooling-off periods have a real cost.
The Cooling-Off Period Problem
When you switch banks, you're locked in a 14-day cooling-off period where you can change your mind. Sounds reasonable, right? But that's not the real problem. The problem is that many people do multiple switches in sequence, and those cooling-off periods stack. You finish cooling-off checker from Switch A, wait for the bonus to hit, do Switch B, cool off again, and so on.
In December, with people wanting to hit their switches before year-end and start fresh in January, cooling-off periods become a genuine bottleneck. If you want to do even 2–3 switches in a month, you're realistic looking at 4–6 weeks of elapsed time. That's actual calendar time that limits your options.
Here's the cost: while you're in cooling-off periods, your money is sitting in suboptimal accounts earning minimal interest. With savings rates now at 4% for easy-access accounts (and higher for fixed-rate bonds), a cooling-off period on £5,000 for two weeks is costing you roughly £4 in lost interest. Multiply that across multiple switches and it adds up.
The Credit Score Impact
Switching banks triggers a hard credit check, which does appear on your credit file. Most banks will do a soft check first (which doesn't affect your score), but the actual switch involves a hard check. One hard check isn't a problem. Three or four in quick succession? The impact becomes measurable, especially if you're planning a mortgage application within the next 12 months. Even a small dent in your credit score can cost you basis points on a mortgage rate.
If you're planning to borrow money in 2023, aggressive switching in December might not be your best move.
The Time Investment
Let's be honest: switching banks involves real work. You need to:
- Research which banks are offering what
- Verify eligibility (some offers have conditions)
- Set up a qualifying direct debit (more on that below)
- Chase the bank for the bonus if it doesn't arrive on time
- Eventually switch everything back to your preferred bank
For a £1,500 bonus, over roughly 8 weeks of elapsed time (setup, cooling-off, post-switch admin), you're looking at maybe 5–7 hours of actual work and mental energy. That's about £200–300 per hour of work, which is genuinely good. But it's not a passive income stream. It requires active management.
What Else Can You Be Earning Right Now?
This is the key question that's changed in December 2022: your alternatives are much better than they were.
Easy-access savings: Chip away £5,000 in an easy-access account at 4% interest. That's £200 per year, or about £42 in three months. Not bad, and zero effort. You could genuinely do better than this with a fixed-rate bond.
Fixed-rate bonds: A one-year fixed bond at 5% (and good ones exist right now) would earn you £250 per year on £5,000. Spread over six months, that's £125. It's not as sexy as a £1,500 lump sum, but it's reliable and you don't need a direct debit, a cooling-off period, or credit checks.
Regular savers: If you can afford to put money aside regularly, banks are offering 5%+ AER on regular saver accounts. Over a year, putting aside £500 per month, you could earn £150–200 from the interest alone, plus the account growth is genuine.
Stoozing: Using a 0% credit card to earn interest on a balance transfer is still viable if you can access the cards, but the offers are drying up and the interest you can earn is modest compare bank bonusesd to earlier in 2022. (Read more about how stoozing works.)
When Bank Switching Still Makes Sense
All that said, bank switching absolutely still makes sense. Here's when:
1. You've done it before. If you've already optimized your process, know which banks you prefer, and have a system for tracking direct debits and cooling-off periods, the time investment drops dramatically. It's mostly routine. The ROI improves.
2. You're young and don't have immediate borrowing plans. If you're not applying for a mortgage, car loan, or other credit in the next 12 months, the credit score impact becomes almost irrelevant. One hard check now won't materially affect anything.
3. You're doing it as part of a stack. Bank switching is most valuable when combined with stoozing and regular savers. You're not choosing between switching OR earning interest elsewhere—you're doing switching AND putting money in regular savers AND optimizing your ISA allowance. The total returns of a well-executed stack are genuinely impressive.
4. You have large amounts to move. The bigger the balance you're moving, the better the ROI. A £1,500 bonus on £5,000 is 30% in six weeks. A £1,500 bonus on £50,000 is 3% in six weeks, which is still good, but the time investment is the same. Banks with higher switching bonuses often require higher minimum balances.
5. You're combining it with a direct debit that would exist anyway. If you already need to move a qualifying direct debit (gym membership, charity, subscription service), the friction disappears. The direct debit isn't an extra task—it's something you were doing anyway.
The December 2022 Decision Framework
So, should you switch banks in December? Here's a practical framework:
Do it if:
- You're moving less than £15,000 and the bonus is £1,000+
- You have no major borrowing plans in the next 12 months
- You already have a system for managing cooling-off periods
- You can find a direct debit you need to move anyway
- You're combining it with other strategies (stoozing, regular savers, ISA planning)
Consider it if:
- The bonus is high but so is the cooling-off period (4+ weeks)
- You're on the fence about whether the time is worth it (probably not)
- You want to time it for January instead (more on that below)
Skip it if:
- You're planning to apply for credit in 2023
- Your time is genuinely valuable (freelancers, business owners)
- You already have your money in optimized accounts
- The bonus is less than £500 after factoring in your time
- You're exhausted by financial admin
Timing for 2023
Here's a thought for December: you don't have to switch now. January is actually a better time for bank switching. Banks launch new offers in January, people are making New Year financial decisions, and there's less competition from holiday spending.
If you switch in early January instead of mid-December, you'll probably see better offers, the heating will be more stable, and you won't be rushing through the process before Christmas. The cooling-off period won't overlap with Christmas chaos either.
Making the Most of December
If you're not switching, December is the time to:
Maximize your ISA allowance. You have until 5 April 2023 to use your £20,000 annual allowance, but December is when you can open a cash ISA earning 4%+ and get three months of interest before the tax year ends. Check your eligibility here.
Lock in fixed-rate savings. Find a one-year bond above 5% and secure the rate. These offers are genuinely good right now and could disappear if interest rates fall.
Set up a regular saver. Open a 5%+ regular saver account and commit to monthly contributions in January. The setup happens now, the money goes in January.
Plan your 2023 switching calendar. If you're going to do multiple switches next year, now is when you map it out. When will you cool off? Which bonuses are you targeting? What direct debits do you need to move? Use our guide to get organized.
Common Questions
Should I do multiple switches now to "get in before the year ends"?
Only if you're prepared for the cooling-off period chaos and the credit score impact. Most people are better off spreading switches across January and February instead.
Can I apply for a switch bonus if I already switched three months ago?
No. Most banks require you to have been banked elsewhere for at least three months before you're eligible to switch. The clock starts from when you opened your account at the previous bank, not when you closed it.
What counts as a qualifying direct debit for the bonus?
It varies by bank, but generally: utilities, insurance, subscriptions, gym memberships, and streaming services. Some banks are stricter than others. Always check the terms before switching—our eligibility checker can help confirm what qualifies.
Is it worth switching to a bank with a £200 bonus if the time is low?
Honestly? Probably not. £200 over 6–8 weeks of elapsed time, with the friction of cooling-off periods and credit checks, doesn't pencil out. You'd earn similar returns just parking the money in an easy-access account.
Should I worry about the credit score impact if I'm not borrowing?
Not really. One hard check has minimal impact and falls off your file after 12 months. Multiple checks in quick succession do start to matter, but if you're spacing switches out (say, one per month), the impact is genuinely small.
The verdict for December 2022: Bank switching is still genuinely profitable, but it's no longer the obvious slam-dunk it was. The maths still work if you're strategic, combine it with other methods, and don't waste time on low-value switches. But be honest with yourself about your time, your credit situation, and whether the returns justify the effort. If you're on the fence, January is a perfectly good time to start fresh instead.