If you've been paying attention to the news, you've heard it plenty: interest rates went up. A lot. Through 2022, the Bank of England raised rates nine times, and we've all felt it in our mortgages, our loans, and—yes—in our savings accounts.
But here's the thing people often get wrong: they assume that rising interest rates have killed bank switching as a money-making strategy. The logic seems sound on the surface. "Why bother switching for £175 when I can just leave my money in an easy-access account earning interest?"
That thinking misses something crucial. And it's actually the opposite of what's happening in 2023.
How Rising Interest Rates Changed the Playing Field
Let's break down what actually happened through 2022 and what it means for your strategy now.
The Stoozing Math Got Tighter
If you've been using 0% credit cards to earn interest on your savings (stoozing), 2022 was a tough year. As base rates climbed, credit card companies tightened the terms on 0% balance transfer offers. The window for getting long 0% periods got shorter. The rates they charged on fresh borrowing went up. And here's the killer: the returns on your stoozing got worse because the spread between 0% on the card and the interest you could earn in a savings account got tighter. You can earn 3–4% in a savings account now, but that's a far cry from when savings rates were 0.1% and you were pocketing the difference.
But stoozing isn't dead—it's just different now. More on that in a moment.
Credit Card Offers Became Less Generous
While 0% stoozing took a hit, the credit card landscape also shifted. New cards launched with shorter 0% periods. Existing cards reduced their offers. The "golden age" of 20+ month 0% deals? That's largely gone. This isn't great news if you were planning to build a stack of credit card balance transfers, but it's important to understand the changed reality.
Savings Accounts Finally Got Interesting
Here's the flip side: if you have money sitting in savings, you're finally earning something. Easy-access accounts that paid 0.01% in 2021 now offer 3–4%. Fixed-rate bonds are paying 4–5%. regular savers accounts—those brilliant accounts that reward you for putting in money monthly—are now offering 5%+ on some accounts.
This is brilliant, but here's what matters for your switching strategy: you don't need to hold vast sums in savings accounts to earn decent interest anymore. You can do it with your main account after a switch bonus. The interest becomes a bonus on top of the switching bonus, not the main event.
Switch Bonuses Stayed the Same
And this is the crucial bit: live offers page still shows switching bonuses ranging from £175 to £250 depending on the bank. These haven't changed. They're not affected by interest rates. They're fixed money in your pocket just for moving your current account.
Do you see the paradox now?
Why Bonuses Matter More in 2023
When savings accounts were paying nearly nothing, the switch bonus was nice, but it wasn't dramatically better than what you'd earn from interest over a year. A £175 bonus might match twelve months of interest at 0.1%.
Now? The maths have inverted.
Let's say you switch to a bank offering £175. You move your money, meet the requirements, and pocket £175. Over the next year in that account, you might earn £60–80 in interest on your balance (depending on the account and how much you hold). But the bonus remains: £175.
That £175 is now a much larger proportion of your total earnings. It's not just a nice-to-have anymore. It's often the most significant chunk of your returns.
compare bank bonuses that to someone who heard "rates went up" and decided not to switch. They're earning interest, sure—maybe £60–80 a year. But they've given up the £175. That's leaving money on the table.
Even with interest rates at their highest in over a decade, switching bonuses are delivering better value than ever.
Your 2023 Switching Strategy
So how do you adapt? The framework is straightforward:
Prioritise Bonuses Over Interest Rates
When choosing which bank to switch to, focus first on the bonus amount, second on any service features you need, and third on interest rates. The bonus is your primary return. The interest is the cherry on top.
Layer In Regular Savers
Once you've switched, don't just leave your money in the current account. Many banks offer live offers page regular saver accounts with rates of 4–5% or higher. Put your monthly spare cash into these accounts. You get two returns: the switching bonus from the current account move, plus regular interest from the savings account. This layering is more powerful now than it was when rates were uniformly terrible.
Plan for Tax
Bank switching bonuses and interest are both taxable. If you earn more than £1,000 in savings interest in a tax year, you'll owe tax on the surplus (or £500 if you're a basic-rate taxpayer). Switching bonuses aren't taxed, but interest is. Factor this in if you're planning multiple moves. The live offers page can help you calculate what you'll actually keep.
Stooze Differently, Not Disappear
Stoozing still works in 2023, but it's not the dominant strategy anymore. Instead of relying on long 0% windows to earn interest, focus on short-term stoozing plays: get a card with 0% for a few months, float money in a savings account earning 4%, and pocket the difference for that window. It's smaller returns than before, but it's still real money for minimal effort. Just check your card's terms carefully before you commit.
Don't Waste cooling-off checker Periods
With rates in flux and bank offerings changing, your switching guide matters more than ever. The 14-day cooling-off period exists for a reason: use it to make sure the account you switched to is delivering what you need. If it's not, switch again. Your strategic window hasn't closed—it's just shifted.
Real Numbers: What This Looks Like in January 2023
Let's build a realistic January 2023 scenario.
You switch to Bank A and get a £175 bonus. You also arrange to move £1,000 into their regular saver account at 4.5% (real rates available now). That £1,000 earning 4.5% yields £45 in a year.
Year one returns: £175 (bonus) + £45 (interest) = £220
Then you switch to Bank B, get another £175 bonus, and put another £1,000 into a regular saver at 4%. Another year of £40 in interest.
Year two returns: £175 (bonus) + £40 (interest) = £215
Over two switches, you've made £435. That's not assuming anything fancy—just basic switching plus regular savers at available rates.
Now compare that to someone who heard rates went up and just left their money in an easy-access account earning 3%: they'd make £60 per year on the same £1,000 balance. Over two years, they'd have £120. You've made £435 vs. their £120. That's the power of the paradox.
And if you're strategic about the timing, manage cooling-off periods carefully, and stack multiple strategies? The numbers get better.
The Catch: Don't Overdo It
There are limits. You can only switch your main current account every so often—most people do it every 3–6 months for maximum returns. You can't hold unlimited regular savers (there's a practical limit before you're managing too many accounts). And each new account application will show on your credit file, which can affect mortgages or big credit decisions.
But for most people in 2023, the occasional switch with layered regular savers is well within sensible limits. Check with your eligibility checker if you're unsure about your own situation.
The Bottom Line
Interest rates rose in 2022. That's changed the landscape, but not in the way most people think. Switching bonuses now represent a larger proportion of your potential returns. They're more valuable, not less. Regular savers are now competitive. Stoozing requires adaptation but still works.
The people making the most money from strategic banking in 2023 won't be the ones sitting it out waiting for rates to get better. They'll be the ones understanding that the rules changed, and switching strategy accordingly.
January is the perfect month to make your first move. Check live offers page, pick a bank with a decent bonus, and get started. Your 2023 returns are waiting.
Common Questions
Has bank switching become harder because of interest rates?
No, it's become more valuable. While interest rates affect credit card offers and savings rates, they don't change switching bonuses. Those are fixed. With savings interest rates now meaningful, you're layering fixed bonus + actual interest, making switching worth more than ever.
Should I stooze in 2023?
Yes, but differently. The long 0% windows are gone, but short-term plays (3–6 months at 0%) combined with 4%+ savings accounts still yield a return. Calculate the actual margin on each card before committing. It's smaller than pre-2022, but it's not worthless.
What if I missed the January banking rush?
Don't worry. Banks rotate offers constantly. You can switch anytime, and you'll always be able to find banks accepting new customers. January is convenient, but any month works. Check live offers page to see current bonuses.
Do I need to hold a lot of money to make switching worthwhile?
No. Even with £1,000–£2,000, you can make £200–£400 per year in switch bonuses plus interest. Most people don't need massive balances to benefit. Smaller balances just mean smaller interest returns, but the bonus is the same regardless.
Are regular saver accounts worth it now?
Absolutely. With rates at 4–5%, they're delivering real returns. If you can put aside £200–£300 per month consistently, regular savers paired with a switched current account create a powerful two-part strategy. Use the live offers page to find the best available rates.