Did you know you can actually get paid to open a bank account in the UK? That’s right—some banks offer cash incentives, bonuses, or other rewards when you switch your account to them or open a new one. It might sound too good to be true, but it’s a genuine opportunity to earn yourself some “free money”. If this is news to you, don’t worry—this guide will explain how it works, which banks have these deals, and how you can maximize the benefits.
What Are Bank Account Bonuses and Why Do Banks Offer Them?
Bank account bonuses are rewards offered by banks to encourage new customers to open accounts or switch their existing accounts. These incentives can be in the form of cash payouts, gift cards, or even higher interest rates on your savings for a limited period.
But why would banks give you free money? It’s simple—they’re competing for your business. The banking sector is highly competitive, and offering incentives is a way for banks to attract new customers. Once they have you as a customer, they hope you’ll stick around, use their other services (like loans or credit cards), and bring in more money for them in the long term.
For you, though, these offers can be an easy way to get paid for simply opening an account or moving your banking from one provider to another.
How to Get Started and Spot the Best Deals
To start earning bank account bonuses, you first need to identify which banks are offering these incentives and understand the terms and conditions. Here’s a step-by-step process:
1. Research Banks Offering Bonuses
Some banks in the UK regularly run promotions where they pay you cash to join. For example:
- First Direct often offers £175 to new customers who switch to their 1st Account. It’s one of the most popular switching bonuses in the UK.
- Santander has offered switching incentives, such as up to £200, in the past for becoming a new customer and meeting certain conditions.
- Nationwide Building Society rewards both new and existing members with bonuses for referring others or switching.
- HSBC runs periodic offers, typically between £150–£200, for new customers opening their Advance or Premier accounts.
- Lloyds Bank occasionally offers switching bonuses, although these are less frequent than some other banks.
2. Understand the Eligibility Criteria
Most, if not all, banks have specific requirements you need to meet before you can claim your cash incentives. Common eligibility criteria include:
- Switching through the Current Account Switch Service (CASS): This ensures your old account is fully closed, and your payments and direct debits move to the new account.
- Setting up direct debits: Many banks require you to have one or two active direct debits linked to the account.
- Minimum monthly deposits: Some banks will ask you to pay in a certain amount each month, like £1,000, to qualify for the bonus.
- Being a new customer (if required): For certain offers, you need to be opening your first account with the bank or at least not have held an account with them recently.
Before committing, read the full terms and conditions to avoid missing out on the bonus.
3. Compare Different Offers
Not all “get paid to open a bank account” deals are created equal. Look beyond the amount of money offered and consider other factors, such as:
- Ongoing account fees: Some accounts with bonuses may charge monthly fees unless you meet specific requirements, like a minimum monthly deposit.
- Additional benefits beyond the bonus: For instance, certain bank accounts offer perks like cashback on bills or higher interest on savings.
- Ease of meeting the criteria: Choose an offer that aligns with your current banking habits to make the process as smooth as possible.
4. Switch or Open a New Account
Once you’ve chosen the best offer, follow the bank’s specific instructions for switching or opening your account. Most banks in the UK use the Current Account Switch Service (CASS), which guarantees a hassle-free transfer of your old account to the new one within seven working days.
5. Use the New Account Properly
To avoid missing out on the incentive, make sure to complete all required actions within the time frame stated in the terms. For example, if the bank wants you to pay in at least £1,000 within 30 days, set up a bank transfer or salary deposit as soon as possible.
Some Examples of Active Cash Incentive Offers
Here are a few examples of incentives you might find when looking into bank rewards. Please note that deals and amounts may vary depending on the time.
First Direct (£175 Bonus)
First Direct’s cash incentive is one of the most well-known in the UK. To qualify, you need to:
- Open a 1st Account.
- Deposit £1,000 within three months of account opening.
- Use the Current Account Switch Service to close your old account.
Once these requirements are met, £175 will be credited directly to your new account. It’s as simple as that.
Nationwide (£200 Bonus)
Nationwide Building Society often has one of the most flexible offerings. You could earn a £200 switching bonus by opening a new FlexPlus, FlexDirect, or FlexAccount and completing a switch. There are also rewards for referring friends and family, so it’s worth considering if you already know someone banking with Nationwide.
Santander (£200 + Cashback Perks)
Santander has run promotions with £200 bonuses for switching to their 123 Lite Account. On top of the bonus, this account also offers cashback on household bills payment, so you can continue to save money month after month.
Tips to Maximize Your Earnings
Once you’ve decided to “get paid to” open a bank account, there are ways you can make the most of these deals:
1. Switch More Than Once
There’s no rule that says you must stick with the first bank you switch to! If and when a better deal comes along, you can switch from your current account to another new one offering a bonus. Just ensure you meet the conditions of the current offer before moving on.
2. Use Direct Debit Flexibility
If you don’t have direct debits set up or wish to avoid the hassle of switching existing ones, try setting up small recurring payments to services like streaming subscriptions or charity donations. These can fulfill the direct debit requirement without tying you into large commitments.
3. Keep an Eye on Future Offers
Bank account switching bonuses come and go. Keep an eye on comparison websites, newsletters, and bank promotions to catch the best deals as soon as they’re available.
4. Avoid Fees Eating Your Bonus
Some accounts with attractive bonuses might charge a monthly fee. To keep more of your reward, look for accounts that waive fees if you meet a deposit threshold or choose fee-free accounts where possible.
5. Refer Friends or Family
Some banks, like Nationwide, offer further incentives for referrals. If you’re happy with your new bank account, share the information with friends and earn additional bonuses while helping them take advantage of deals as well.
Is It Really Free Money?
While the idea of “free money” is appealing, keep in mind that these offers come with strings attached. It’s less about “free” and more about “earned” money—you’ll need to meet the requirements to pocket the cash. Still, if you were thinking about switching banks anyway, these promotions are a fantastic way to benefit financially from the move.
Done right, these deals can boost your finances with minimal effort. It’s not every day you get paid just to open a bank account, so why not make the most of it while these offers last?
Final Thoughts
Switching bank accounts to take advantage of cash bonuses is a smart and easy way to earn extra money in the UK. By doing your research, comparing offers, and meeting the eligibility criteria, you could pocket £100, £200, or more from just a few simple steps. It’s a straightforward process, especially with the Current Account Switch Service.
Take your time to weigh up the options, find a deal that works for you, and get started. The idea of getting paid to do something as simple as opening a bank account might just be too good to resist!