If you've been following along with bank switching, stoozing, and regular savers accounts throughout 2020, it's the perfect time to take a step back and count up exactly what you've earned. More importantly, it's a brilliant opportunity to review what worked, what didn't, and how to make 2021 even more profitable.
2020 was an unusual year in many ways, but for those willing to put in the effort, the banking opportunities have been genuinely strong. Whether you've been quietly stacking bank switch bonuses, making the most of 0% credit cards, or building up regular saver interest, there's real money to account for. And if you've been doing all three simultaneously, you might be surprised just how much it adds up.
Let's work through it properly, because knowing precisely what you've earned helps you spot opportunities for next year—and it's essential for getting your tax situation sorted before the new year starts.
Calculating Your Bank Switch Bonuses
This is the most straightforward part of your banking earnings, but it's easy to lose track if you've done more than a couple of switches throughout the year.
Look back through your email and your bank statements. Each time you switched, you should have received a bonus paid directly into your account. In 2020, we've seen some genuinely strong offers:
- Nationwide hit £1500 at multiple points
- Virgin Money offered £1000
- First Direct's £250 bonus has been reliable
- RBS and NatWest both offered £175
- HSBC came in at £150
- Lloyds and Halifax both offered £125
- TSB rounded out the year at £100
If you've done just three switches, you could easily have earned £400–£500 in bonuses alone. Five switches? You're looking at £1000+ without much effort at all. Seven or eight? That's a serious chunk of change.
The key is to count:
- How many switches you completed this year
- The exact bonus amount for each one
- Which account each bonus was paid into (so you can verify it against your statements)
- When the bonus actually hit your account (this matters for tax purposes)
Write these down now, while 2020 is still fresh. You'll need them for your tax return if your total taxable interest exceeds your Personal Savings Allowance. And don't worry—we'll cover the tax bit in detail later.
Pro tip: Head to our live offers page right now to check what's available for January. Many banks launch fresh bonuses in the new year to capture people making financial resolutions. January switches will complete with new bonuses by February and March, setting you up nicely for Q1.
Stoozing Returns — The Quiet Earner
This is where many people dramatically underestimate their earnings, because the returns feel small each month until you add them all up at the end.
Stoozing works by using a 0% balance transfer or 0% purchases card to hold money in a high-interest savings account. You're earning interest on the bank's money (effectively) while paying them nothing because of the 0% promotional period. It's risk-free and genuinely profitable if you're systematic about it.
Let's do some realistic maths:
Example scenario:
- You found a 0% card with a 20-month promotional period
- You transferred £3000 onto it
- You held it in a 1.5% easy-access savings account for those 20 months
- Your interest earned: £3000 × 1.5% × (20÷12) = £75
That doesn't sound like much until you multiply it across multiple cards running simultaneously throughout the year:
- Card 1: £3000 at 1.5% for 20 months = £75
- Card 2: £2000 at 1.5% for 18 months = £45
- Card 3: £2500 at 1.5% for 22 months = £69
- Card 4: £1500 at 1.5% for 15 months = £28
Total: £217 from just four cards
And if you've been doing this throughout 2020, you might have had five, six, or even more cards running at different times across the year. The interest compounds properly when you're not paying any fees or promotional charges.
The crucial thing right now: write down the opening and closing balances for each 0% card and the dates you held them. Record which savings account held the money and at what rate. You'll need this for your tax records, and it helps you optimise your approach for 2021. If you used our stoozing guide, you'll have a better sense of how to maximise this next year.
Regular Saver Interest — The Consistent Foundation
If you've been building up a regular saver account (or multiple ones), you should have a lovely clear statement showing exactly how much interest you've earned. Regular savers are genuinely underrated by most people, but the numbers tell a different story.
A 5–7% account with £200–300 per month deposits sounds small until you do the maths. Over 12 months:
- £300/month at 5% AER = approximately £90–100 in interest
- £200/month at 6% AER = approximately £65–75 in interest
- £250/month at 7% AER = approximately £90–100 in interest
Again, if you're running multiple accounts simultaneously (which you absolutely should be), this adds up quickly. Two accounts at decent rates could easily give you £150–200 for the year. Three? You're at £250–300. And that's basically free money for doing nothing except a standing order.
Get your regular saver statements together right now and add up the interest paid. Look at the opening balance on 1 January 2020 and the closing balance on 31 December. That total interest figure might surprise you.
Your Total Banking Income for 2020
Now add it all together. Get a piece of paper or a spreadsheet and write down:
- Total from bank switch bonuses: £____
- Total from stoozing interest: £____
- Total from regular saver interest: £____
- Grand total: £____
For many people actively engaging with these strategies, the number will be somewhere between £400 and £1500. Some will be higher (if you've done six switches plus multiple stoozing cards), some lower (if you started late in the year). But the point is: this is real income, and you need to know what it is.
Most importantly, this is income you've earned while the average savings account pays 0.01%. You've beaten the market by a factor of 50–100. That's genuinely impressive.
Tax — The Important Bit You Cannot Ignore
Here's where it gets serious. Not all of this money is tax-free, and you need to understand what you actually owe before the tax year ends.
Bank switch bonuses are generally not taxable. They're gifts linked to the service of switching, not explicit interest or income. The key word is "generally"—if the bonus was explicitly written as "earn £200 interest on a switch," it might be treated differently. But modern bank switch bonuses are almost universally treated as non-taxable gifts. Keep your T&Cs just in case HMRC ever asks.
Interest from stoozing and regular savers is taxable as savings interest. This is the crucial bit. You get a Personal Savings Allowance depending on your income tax band:
- Basic rate earners (£12,500–£50,000): £1000 allowance
- Higher rate earners (£50,000–£125,000): £500 allowance
- Additional rate earners (over £125,000): £0 allowance
If your total taxable interest (from all savings accounts combined) exceeds these thresholds, you'll owe tax on the excess at your marginal rate.
Example scenario for a basic rate taxpayer:
- Your interest from stoozing: £200
- Your interest from regular savers: £120
- Your interest from a normal savings account: £150
- Total interest: £470
You're a basic rate taxpayer with a £1000 allowance. Your first £1000 is completely tax-free. You owe nothing because you haven't exceeded your allowance.
Now a higher rate taxpayer example:
- Your stoozing interest: £300
- Your regular saver interest: £200
- Your other savings interest: £150
- Total interest: £650
You're a higher rate taxpayer with a £500 allowance. You owe tax on £650 – £500 = £150 at 40% = £60 tax liability.
Keep all your bank statements and your savings account interest statements. If you earned more than your allowance, you might need to do a self-assessment tax return. It's not complicated, but it's absolutely essential and the penalties for non-compliance are harsh.
Planning Your 2021 Strategy
The new year is always the best moment to reset your banking approach and come back stronger. Here's how to structure 2021 for maximum returns:
January is your switching window. Banks always launch new offers at the start of the year. You've got 12 months ahead of you. Don't waste January—if you haven't switched yet, use the switching guide and get moving. Check what's available on our current offers and apply now.
Plan your stoozing card schedule. Look at 0% card lengths. If you want multiple cards running simultaneously, you need to apply for them strategically so they mature sequentially. This requires some planning, but it keeps the money working continuously and maximises your interest.
Max out your regular saver contributions. If you found accounts with genuinely good rates in 2020, stick with them—increase your monthly contributions if possible. If rates have dropped (and they have in many cases), review what's available and potentially switch to better options.
Use the eligibility checker before applying. Not all accounts are available to everyone. Different providers have different criteria. Before you apply, check which offers you actually qualify for using our eligibility checker. This saves you hard credit checks and wasted applications.
Factor in cooling-off checker periods. Many banks won't let you switch again within 12 months of your last switch with them. Some have a 3-month cooling-off period instead. switch planneres around these windows so you're not left waiting unnecessarily.
Making the Most of Your 2020 Earnings
One final thought: if you've earned £500–1000 this year through switching, stoozing, and regular savers, you've genuinely outperformed the financial system. The average savings account pays 0.01%. You've likely done 50–100 times better than that.
The effort you've put in deserves to be maximized in 2021. There's absolutely no reason your earnings can't double next year if you're a bit more strategic with timing, planning, and coordinate your switches with your stoozing and saver accounts.
The systems work. You've proven it in 2020. Now make 2021 even better.
Common Questions
Should I tell HMRC about my interest earnings?
If your total interest exceeds your Personal Savings Allowance, yes—you should report it. You might need to do a self-assessment tax return. HMRC has clear guidance on this, and it's genuinely not worth ignoring. The penalties for undeclared income are significant, and they will catch up with you eventually.
Can I carry over my Personal Savings Allowance to next year?
No. Your allowance resets completely on 6 April each year. If you don't use it, it's gone forever. This is why December is a good time to think strategically: do you have headroom for more interest-bearing accounts in January, or have you already used your full allowance?
What counts as interest for tax purposes?
Any interest paid on savings accounts, 0% stoozing returns, regular saver interest, ISA interest (some ISAs are tax-free anyway), or even premium bonds if you win. Bank switching bonuses usually don't count as taxable income. But interest always does.
If I do a switch in January, when do I actually get the bonus?
It varies by bank, but most bonuses appear within 1–3 months of the switch completing. Don't rely on January bonuses hitting your account in January for tax purposes. April onwards is more realistic for when you'll see the money.
Do I need to keep all my bank statements for the tax year?
Yes. Keep them for at least 5–6 years. HMRC can ask for evidence of your interest earnings, and your bank statements are the proof you need. Digital copies are fine—just make sure they're backed up.