More than five major UK banks are currently offering cash incentives to customers willing to switch their current account, with the highest publicly advertised bonus now reaching £300. New research from Hargreaves Lansdown suggests that inertia is costing British savers roughly £12bn a year in missed interest, even as competing banks sweeten their offers to win new customers.
The survey of 3,000 British adults, carried out in August, found that almost two-thirds of savers have stayed with the same bank for more than a decade, while just 34% have moved their money in the past 12 months. Hargreaves Lansdown based its £12bn estimate on an analysis of Financial Conduct Authority data.
Which banks are offering the biggest switching bonuses right now?
According to Which?, the Co-operative Bank is now the market leader, offering up to £300 to eligible switchers, ahead of the £175-£220 range most other providers are advertising. HSBC is currently promoting a £220 switch bonus alongside a 5% fixed regular saver capped at £250 a month, according to ClearScore. Santander's current offer stands at £180, tied to setting up two household direct debits and keeping the account open for 60 days, the same source reports. Barclays, meanwhile, is offering £200 to new switchers who use the Barclays app, set up two direct debits and pay in £2,000 within 30 days, per ClearScore's analysis. A separate market comparison from Finder lists live incentives from HSBC, Barclays, NatWest, RBS, First Direct, Nationwide and Santander, indicating a broader wave of competition among providers this summer.
Why do so many savers stay with the same bank for years?
Simon Belsham, chief client officer at Hargreaves Lansdown, says that doing nothing might feel like the easy option but "often leads to poor returns".
Millions leave their cash with the same bank by default and that inertia is worth a fortune to banks, while costing British savers billions of pounds a year.
Savers clearly care about rates: when they move their money, the overwhelming reason is to secure a better return.
What holds them back is the effort of repeatedly finding, opening and juggling different accounts.
Sarah Coles, head of personal finance at AJ Bell, says customers tend to be "incredibly loyal" to their existing bank, which is precisely why rivals need to offer cash sweeteners to tempt them away.
It's worth it for the banks, because they then have a captive audience, who are more likely to take other products from them.
She adds that any bonus should be treated as the "cherry on top" of a decision, rather than the main reason to switch, and that customers should also weigh up a bank's service reputation, overdraft charges and savings rates.
What should you check before switching accounts?
Most offers come with conditions attached, such as paying in a minimum amount within the first few weeks or maintaining a set number of direct debits. Switching accounts will also appear on your credit report, which lenders review when assessing mortgage or loan applications. Opening several accounts in quick succession can dent your credit score, though closing an old account may help improve it. Coles suggests holding off if a major loan application is imminent.
If you're planning to apply for a loan or mortgage in the next 12 months, you may want to wait until the deal is done.
How does the switching process actually work?
Customers do not need to transfer each direct debit or bill individually thanks to the free Current Account Switch Service (CASS), which more than 50 UK banks and building societies have signed up to. After choosing a switch date, allowing seven working days, and providing old account details, the service transfers payments, moves the balance and redirects incoming payments such as salaries or benefits. The previous account is then closed automatically. If anything goes wrong during the process, customers are refunded any interest or charges incurred on either account. Recurring card payments, such as subscriptions, still need to be moved manually, and old bank statements become inaccessible after the switch, so it is worth downloading them beforehand.
This system has made switching considerably more straightforward than it once was, a shift explored in earlier coverage of how switching providers to save money has become easier across banking, broadband and energy.
What happens next?
Barclays' £200 switching offer is scheduled to end on 27 August 2026, according to Finder. By contrast, HSBC's £220 bonus and the Co-operative Bank's £300 offer currently have no published end date and, according to the same source, remain available until withdrawn by the banks. Anyone considering a switch may want to act before the Barclays deadline passes, while the other offers could be withdrawn without prior notice.
Key Facts
- Almost two-thirds of British savers have stayed with the same bank for more than 10 years, per Hargreaves Lansdown's August survey of 3,000 adults.
- Staying put is estimated to cost UK savers around £12bn a year in missed interest, based on FCA data analysis.
- The Co-operative Bank's £300 switch bonus is currently the highest on the market, ahead of HSBC's £220, Barclays' £200 and Santander's £180.
- Barclays' offer requires app use, two direct debits and a £2,000 pay-in within 30 days, and ends on 27 August 2026.
- The free Current Account Switch Service, used by more than 50 UK banks and building societies, handles the transfer of balances, direct debits and incoming payments automatically.
