One of the most frustrating rules of bank switching is this: to qualify for a bonus, most banks require at least one active direct debit guide. Not a standing order. Not a simple transfer. A proper direct debit, active on your account when you switch.
If you don't have any direct debits, you face a choice: either skip the bonus entirely, or set one up. For years, this meant paying £10–30 a month for a gym membership you'd never use, effectively cutting your bonus in half before you'd even started.
But here's what many switchers don't realise: there are legitimate, genuinely cheap ways to meet this requirement. Some cost as little as 30 pence a month. This guide shows you exactly how to qualify without wasting money, and how to strategise around the direct debit requirement to maximise your earnings calculator.
Why Do Banks Care About Direct Debits?
This is worth understanding, because it shapes everything else.
When a bank asks for a direct debit, they're not being awkward. They're solving a real business problem. Direct debits are a sign of active account usage. Someone who has set up a direct debit is someone who:
- Uses the account regularly – they have recurring bills or payments
- Is invested in the relationship – they've taken time to set up the arrangement
- Is less likely to close the account quickly – switching accounts is a hassle; someone with direct debits has more reason to stay
- Is higher-value to the bank – they might use overdrafts, credit products, or other services
From a bank's perspective, bonus-hunters are a gamble. A customer who opens an account, claims the bonus, and closes it after a week is expensive to acquire and gives the bank nothing in return. A customer with an active direct debit is someone who might become a genuine, long-term customer.
So the direct debit requirement isn't punitive—it's a filter. Banks use it to separate casual bonus-chasers from people who might actually use the account.
The Direct Debit Requirement in June 2020
Right now, most banks offering switch bonuses require:
- At least one active direct debit on the account by the time you switch
- That direct debit must remain active for a set period (often 3–12 months)
- The amount and recipient don't matter – a 30p monthly payment counts the same as a £300 one
Some banks are stricter (requiring two direct debits, or specific categories like utilities or insurance), but the majority follow the "at least one active" rule.
This is where the opportunity lies.
Finding Cheap Direct Debits Under £1/Month
If you don't already have direct debits, the strategy is simple: find the cheapest possible legitimate payment that meets the requirement, set it up, and forget about it.
Savings Pots and Bank-Managed Transfers
Some newer banks offer "savings pots" or sub-accounts within the current account, with automatic transfers you can set up as direct debits. For example, you might set up a 1p-per-month automatic transfer to a linked savings pot. The banks officially frown on this (they'd rather you had real bills), but it's not illegal, and it still technically qualifies.
Cost: 1p–30p/month, depending on the bank's policy
The downside: some banks' app systems flag these as "not genuine" direct debits and may cancel the bonus if they spot them. It's a grey area.
Charity Donations
This is legitimate, and thousands of switchers use it. You can set up a direct debit to donate to nearly any charity—and the amounts are entirely flexible. Many people donate as little as 30p or 50p per month.
Cost: As low as you want – 30p/month is perfectly acceptable
Charities are set up to accept these small amounts; they're used to regular donors at every level. You're genuinely supporting a cause, and the charity gets a regular, predictable payment. It's a genuine direct debit by any definition.
Popular choices:
- Cancer Research UK: 50p/month, you feel good about it
- RSPCA: Similar setup
- Oxfam: Flexible amounts
- Local food banks: Often need small regular donations, especially during 2020
Streaming Services and Subscriptions
This is the "accidental" direct debit many people already have. If you pay for Spotify, Netflix, or other streaming services via direct debit, you've already met the requirement—and you're paying for something you probably use.
Cost: £4–15/month (depending on service), but you probably have these anyway
The advantage here is that it's genuine usage. You're not creating an artificial payment; you already have this direct debit.
Gym Memberships and Activity Classes
Pre-COVID, this was the classic option. Now it's trickier because many gyms are closed. But if you have access to a local gym, swimming pool, or activity class that takes direct debits, it works.
Cost: £10–30/month
The catch: you need to be willing to actually use it, or you're wasting money. If gyms reopen soon, this might return to being a popular option for switchers.
Savings Accounts Within Your Bank
Some people set up a very small direct debit within the same bank – from their current account to a savings account – effectively moving a tiny amount of money back and forth each month.
Cost: 1p–50p/month
This is the grey area. It works, but banks increasingly watch for it. If discovered, they may cancel the bonus, arguing it's not a "genuine" direct debit.
Utilities Negotiation
Here's a less common option: negotiate with your current utility provider (gas, electricity, water) to reduce your direct debit to the absolute minimum amount required. Explain you're moving house or restructuring your payments.
Cost: Could be as low as £5–10/month if you're lucky
This requires confidence on the phone, but it's genuinely possible. Some utility companies will work with you, especially if you have a good payment history.
The Switching Strategy: Timing Is Everything
Now you know where to find cheap direct debits. Here's how to use that knowledge strategically.
The Classic Path
- Current situation: You have no direct debits (or only expensive ones)
- Action: Set up your chosen cheap direct debit 1–2 weeks before starting your switch
- Reason: You need it to be active (usually showing as active in the bank's system) when you switch
- After switching: Keep the direct debit running for the required period (usually 3 months minimum)
- After the period expires: You can cancel it if you want
The 1–2 week buffer is important. Some banks' systems update slowly; you want to be certain the direct debit is showing as active by the time your switch completes (which takes about 7 working days in the UK).
The Staggered Approach (For Multiple Switches)
If you're planning to switch banks multiple times (which many StoozeMax readers do):
- Set up your cheap direct debit once
- Each time you switch, the same direct debit counts as meeting the requirement
- You only pay for one direct debit across all your switches
This is huge. If you plan to switch twice a year, you've effectively paid 30p once to unlock two bonuses—£30–50 each. That's an ROI of thousands of percent.
Keeping Receipts
If your direct debit is a charity donation or subscription, screenshot or save evidence of the payment:
- Bank statement showing the debit
- Email confirmation from the charity or service
- Screenshots of the payment setup
If a bank later questions whether your direct debit is "genuine," you can provide evidence. This is especially important if you've used a savings-pot transfer or similarly borderline option.
Common Mistakes (And How to Avoid Them)
Setting up the direct debit too late: If you set it up the day you start your switch, it might not show as active in the bank's system in time. Aim for at least a week beforehand.
Cancelling too early: Some banks' bonus conditions require the direct debit to stay active for 3–12 months. Check the terms before cancelling. If you cancel early, you might forfeit the bonus.
Using a non-recurring payment: A one-off payment or standing order doesn't count. It has to be a proper direct debit—a recurring, automatic payment that the recipient can control.
Forgetting the direct debit exists: If you've set up a savings-pot transfer and then closed that savings pot, the direct debit might fail, and the bank might cancel your bonus. Keep a note of what you've set up.
Assuming all direct debits are equal: Some banks are picky about what counts. Charity donations and subscriptions almost always count. Savings-pot transfers are risky. Check with the bank if you're unsure.
Combining with Other Strategies
Here's where this gets interesting. The direct debit requirement is just one part of the switching picture. The real power comes from combining it with other strategies:
- Stack multiple switches: Switch to three different banks in a year, using the same cheap direct debit for all three
- Add a regular savers: Many banks offer bonus regular savers in addition to switch bonuses—and you can do both simultaneously
- Use a 0% card: After switching and waiting for the bonus, apply for a 0% balance-transfer card and combine it with stoozing
- Timing around annual milestones: Switch in April (new tax year) and September (post-summer), when banks often launch fresh offers
Check our switching guide for the full strategy, and visit our live offers page to see what's available right now.
Is It Worth It?
Let's do the maths. Suppose you:
- Set up a 30p/month charity direct debit
- Switch to a bank offering a £100 bonus
- Keep the direct debit active for 3 months (90 pence total cost)
- Cancel it afterwards
Profit: £99.10
Or, more realistically:
- Set up one 30p/month direct debit in June
- Switch to Bank A (£100 bonus) in June
- Switch to Bank B (£75 bonus) in September (same direct debit)
- Switch to Bank C (£100 bonus) in December (same direct debit)
- Total cost: £3.60 (12 months of direct debits)
- Total gain: £275
- Net profit: £271.40
The direct debit is essentially a fee for accessing thousands of pounds in bonuses. It's one of the best ROI bets in personal finance.
Common Questions
Can I use any direct debit, or does it have to be a specific type? Most banks don't care what the direct debit is for. A charity donation, subscription, or utility payment all count equally. Check the bank's specific terms if you're unsure—some older banks may require it to be a "household bill" (utilities, insurance, rent), but this is becoming rare.
What if I set up a direct debit and then change my mind before switching? You can cancel it anytime. Just don't cancel it after switching; you need it to stay active for the period specified in the bonus terms. If the bonus requires it to be active for 3 months and you cancel it after 2, you risk forfeiting the bonus.
Will setting up a cheap direct debit affect my credit score? No. The direct debit itself doesn't affect your credit score. However, opening a new bank account (which you'll do as part of switching) triggers a soft credit check, which doesn't impact your score. If the bank does a hard check (rare for switches), it will show on your credit file, but won't materially damage your score, especially if you're not applying for credit elsewhere at the same time.
Can I set up a direct debit with my current bank and then switch to a new bank, keeping the old one open? Absolutely. The direct debit can stay with your current bank. You'll be switching your main current account to a new bank, but you can keep the old one open—which is handy if the direct debit is there. Many switchers deliberately keep old accounts open for this reason.
What if my direct debit fails or bounces? If your direct debit fails (e.g., you accidentally close the linked account), the bank might cancel it and could claim you've breached the bonus conditions. Always make sure there's enough money in the account to cover the payment. Even if it's only 30p, make sure it goes through.
Want to start switching? Check your eligibility with our eligibility checker, then head to our offers page to see which banks are accepting new customers right now. And if you're curious about the broader strategy—how to combine switching, stoozing, and regular savers—read our guide on how it all works.