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Get paid for switching your current account

Get paid for switching your current account

Category: Banking

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

A current account is one of life's little essentials and it has never been more important to make the most of what money we have in our pockets.

Whilst many of us scour the market for the best savings account, energy tariff or home insurance deal, current accounts are often overlooked. Most people rarely stop to consider what exactly their current account is doing for them and switch their money to a more competitive or suitable account.

A general reluctance to move accounts is though to be behind thousands of us keeping the same bank account for years, with the average switching process taking around one month.

A strict deadline is to be introduced with effect from September this year, whereby banks and building societies will be required to process the switching of a customer's current account to a rival institution within seven days. Guarantees are to be put in place to ensure regular payments in and out of a customer's account do not go astray when they open a current account at a new bank.

A number of familiar high street banks currently offer cash incentives to switch bank accounts.

Halifax offers an attractive switching incentive for customers moving to accounts such as the Reward Current Account or the Ultimate Reward Current Account.

Between 2 January 2013 and 3 March 2013, Halifax customers will receive £100 on the same day they begin the switching process.

As well as a £100 credit, new customers will not pay any fees on planned overdrafts for a year, even if an existing overdraft is in place.

According to research by, the average overdraft rate currently stands at 15.87%.

Based on this average rate, customers with a planned overdraft of £700 could save £137.55 in overdraft charges if they decide to switch, according to Halifax.

Alternatively, first direct offers new customers £125 to the accounts of new customers who switch to its 1st Account, which also offers a £250 interest free overdraft.

To qualify for the £125, customers must open the account and then move their banking across using the Easyswitch service.

At least two Direct Debits and/or standing orders must be transferred and then a salary or income of at least £1,500 per month must be paid to the account within three months of it being opened if the incentive is to be paid.

So, what is stopping you from swapping? Make the very most of your money, and be rewarded with a little bit more, today.

What Next?

Compare bank accounts with switching incentives - just click on the details link for full list of incentives.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.