Current Account Switch Service (CASS) July 2026: How to Switch Banks in 7 Days and Claim Up to £220 — Now 5 Banks Paying Bonuses

The Current Account Switch Service launched in September 2013, run by Pay.UK, the not-for-profit operator of UK retail payment systems. More than 50 banks and building societies participate. Over 12 million switches have been completed since launch.

The guarantee commits both banks to four things:

1. The switch completes in seven working days — you pick the date, and everything must be live by end of business on that date. Pay.UK's latest dashboard (issue 50, published 30 April 2026, covering Q1 2026) maintained the 99.2% seven-day delivery record.
2. Your old bank closes the old account — you do not call them, write to them, or visit a branch.
3. All direct debits, standing orders, and your balance transfer automatically — and for 36 months after the switch, any payment sent to your old account number is redirected to your new one.
4. You are refunded any charges or interest that result from a mistake by either bank — the Financial Ombudsman Service is the backstop.

The Q4 2025 dashboard recorded 350,114 switches — the busiest quarter of the year, driven by simultaneous £150–£200 offers from Barclays, Lloyds, NatWest, and Santander. Annual switching in 2025 totalled 1,054,521, down 11.4% from 2024's 1,190,676. The contraction through Q1 2026 reflected weaker incentives — not a failure of the service. When HSBC returned with £220 in late June, the market signalled that the bonus contraction of early 2026 was a pause, not a permanent retreat.

What CASS does not do: it does not move recurring card payments (Netflix, Amazon Prime, Tesco delivery saver). Those rely on stored card details you must update manually. It does not move payee lists. Budget an hour in the fortnight after switch day. Download your old statements before the switch — once the account closes, retrieving them requires a formal request.

If a switching offer unlocks a monthly saver, compare the actual interest on staged deposits in our regular-saver maths guide.

The switching journey is simple:

Day 0 (you open your new account): Apply through the new bank's website or app. Identity verification takes minutes for UK residents with a clean credit file. Tick the box for a full CASS switch, give the sort code and account number of your old account, and pick a switch date at least seven working days ahead.

Days 1–6 (new bank prepares the switch): Your new bank shares the switch request with the old bank via Pay.UK's central switching system and requests your direct debits, standing orders, and current balance. Check the new bank's app for messages asking for additional ID.

Switch date (day 7 or later): Early morning, your balance transfers. All direct debits are redirected. Your old account closes.

Days 8–90 (monitor for gaps): Update stored card details with retailers, re-create payees in your new banking app, and update your details with HMRC if you make Self Assessment payments. Budget an hour over the following fortnight.

Months 1–36: The payment redirection stays live.

One tip: pick a switch date at least three working days after your salary lands in the old account. Salary and direct debit clashes on switch day are the most common cause of temporarily unavailable funds.

If you are on Universal Credit, update your UC account immediately after the switch completes. The DWP may ask you to visit a Jobcentre to verify your identity with the new bank details — particularly for app-based banks. Switch just after a UC payment lands to avoid gaps.

The switching bonus market has reversed course. After contracting to three banks in early June, it is now back to five — and the headline numbers are higher.

HSBC — £220 (highest cash bonus). HSBC returned to the switching market in late June 2026 with £220, the largest headline cash switching bonus currently available. Full CASS switch required, at least two active direct debits, and a minimum pay-in. HSBC is part of HSBC Group — which means you cannot claim both HSBC and First Direct bonuses. This is the critical trade-off: take HSBC for the higher headline number, or take First Direct for the service and overdraft. We cover the maths in Section 6. HSBC current accounts

Santander — £180 + £45 Amazon voucher. The surprise return. Santander pulled its £180 switching bonus earlier in 2026 to focus on 1% bills cashback through Edge accounts. It is now back with £180 cash and a £45 Amazon voucher, making the total package worth £225 — within striking distance of HSBC's cash-only £220. The 1% bills cashback on Santander Edge (up to £10/month) remains available, making it the strongest ongoing-value proposition for switchers who pay household bills from their current account. Santander switch offer

Barclays — £200 (fresh offer, ends 27 August 2026). Launched 9 June 2026. Open a Barclays Bank Account through the app, complete a full CASS switch with at least two active direct debits, and pay in £2,000 within 30 days. Paid within 28 working days. Barclays switch terms. If you already hold a Barclaycard, mortgage, or savings account with Barclays, you can still qualify but must delete and reinstall the app and register as a new customer — wait 48 hours for profiles to merge.

First Direct — £200 + £250 0% overdraft. Requires a one-off £1,000 pay-in and a full CASS switch with at least two direct debits. Consistently rated 92% 'great' for customer service (Which? and MSE polling). The £250 0% arranged overdraft for 12 months is the standout feature for anyone who regularly uses an overdraft. First Direct's 7% regular saver (£300/month, 12 months) adds approximately £136 in interest. Excludes anyone who has previously held a First Direct account. First Direct

NatWest — £200 + up to £60/yr rewards. Updated terms: must not have held a NatWest current account on 06 May 2026. Switch into a Select or Reward account. The Reward account now pays £4/month for having two active direct debits plus £1/month for logging into the app — worth up to £60/year. £2 monthly fee applies to Reward. Pay in £1,250 within 60 days. Bonus paid within 30 days. NatWest also offers a 6% Digital Regular Saver on up to £150/month. Excludes anyone who has previously received a NatWest Group switching incentive. NatWest is part of NatWest Group (includes RBS and Ulster Bank) — switching from those disqualifies you. NatWest current accounts

*Santander total includes £45 Amazon voucher.

The banking group constraint is the key to understanding the landscape. HSBC and First Direct share a banking group — you pick one. The four distinct groups are: Barclays, HSBC Group (HSBC or First Direct), NatWest Group, and Santander. That means four bonuses are claimable sequentially, not five. We cover the full claiming strategy below.

For more on ongoing current account perks, see our high-interest current accounts guide and our joint account switching guide.

Switching bonuses are taxable income. The practical effect is almost always zero.

There are two possible HMRC classifications:

1. Savings income. Some banks report the bonus as interest paid on the account. It falls under your Personal Savings Allowance: £1,000 tax-free for basic-rate taxpayers, £500 for higher-rate, £0 for additional-rate (HMRC PSA guidance). With the Bank of England base rate at 3.75%, a basic-rate taxpayer can earn approximately £22,000 in an interest-bearing account before consuming the £1,000 PSA. Even four switching bonuses totalling £800–£845 are a rounding error against that allowance.

2. Miscellaneous income. Other banks report the bonus as 'other income', covered by the Trading and Miscellaneous Income Allowance of £1,000 per tax year (HMRC trading allowance guidance). This allowance covers all casual income: matched betting, side-hustle fees, bank switching bonuses.

Worked example for a basic-rate taxpayer, July 2026

• Switch to Barclays (£200), then NatWest (£200 + ~£30 rewards for half a year), then HSBC (£220), then Santander (£180 + £45 Amazon voucher).
• Total gross switching income: £800 in bonuses. NatWest rewards: ~£30. Santander voucher: £45.
• Total miscellaneous income: ~£875.
• Under the £1,000 Trading Allowance: tax due = £0.
• Net value: £875.
• Time commitment: roughly 30 minutes per switch, ~2 hours total. That is £437 per hour, tax-free.

If you already have other miscellaneous income — say £300 in matched-betting profits — your total rises to £1,175. The £175 excess above £1,000 is taxed at your marginal rate. At basic rate that is £35. On £875 net switching income, that leaves £840 after tax.

Our savings hub covers the full PSA interaction if you hold high-interest accounts close to the threshold, and our FSCS deposit protection guide explains how your money is protected across multiple banking groups.

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For most readers, switching produces free money. Three situations where it does not:

The overdraft trap. UK arranged overdraft APRs cluster between 35% and 49.9% at major banks after the FCA's 2020 overdraft reforms. Switching from a 35% APR bank to a 39.9% bank on a £500 average overdraft balance adds roughly £25 in interest over a year. First Direct's £250 0% arranged overdraft for 12 months is the standout — it delivers two wins: the £200 bonus plus roughly £100 in saved overdraft interest.

Mortgage application in progress. Do not switch your main current account in the six weeks before a mortgage application completes. Lenders want three to six months of stable income deposits into a single account. A fresh account with two weeks of deposit history creates underwriting friction. Wait until after completion. See our remortgage timing guide for the full timeline.

Packaged account insurance mid-claim. CASS closes your old account, and any packaged account insurance (travel, mobile phone, breakdown cover) typically terminates with it. Resolve any active claims before switching.

The July 2026 macro context matters more than usual. Two things happened in the last week of June and first day of July that shift the calculus:

First, the energy price cap rose on 1 July 2026. Ofgem announced the new cap level in late May, and it took effect at the start of this month. The Guardian reports the rise will push millions of households into fuel poverty — National Energy Action estimates an additional 500,000 households cross the threshold. For a typical household, the annualised increase runs to roughly £100–£150 depending on region and meter type. A £200 switching bonus covers that increase and leaves change.

Second, UK house prices stalled for a second straight month, with estate agents warning of a summer slump (Guardian, 1 July 2026). The Bank of England held rates at 3.75% on 18 June, with the next decision due 30 July. The MPC's June minutes noted that energy-driven inflation remains a concern — CPI is at 2.8% and the Bank expects it to rise further as higher energy costs feed through. Higher rates for longer mean mortgage costs stay elevated, which means fewer people moving house, which means fewer people switching banks organically — which means banks need switching bonuses to acquire customers.

That last point is the one the headlines miss. A stagnant housing market is bad for bank customer acquisition. Switching bonuses are a counter-cyclical tool. When fewer people move house (the traditional trigger for changing banks), banks raise bonuses to create a reason to switch. The expansion from three to five offers in July is partly a response to exactly this dynamic. The rational move is to claim what is available now — four bonuses across four banking groups — rather than wait for the market to improve.

Five banks, but four banking groups — because HSBC and First Direct share HSBC Group. The HSBC vs First Direct decision is the first choice you make, and it shapes everything else. Here is the optimal sequence for July 2026.

The HSBC vs First Direct decision

Pick HSBC (£220) if you want the highest cash bonus and do not use an overdraft. You forfeit First Direct's £250 0% overdraft and 7% regular saver. A basic-rate taxpayer with no overdraft comes out £20 ahead with HSBC.

Pick First Direct (£200) if you use an overdraft — the £250 0% facility saves roughly £100 in interest over the year. Add the 7% regular saver (£300/month, ~£136 in interest) and the total value of the First Direct package exceeds HSBC's £220 by a wide margin. First Direct also wins on service quality.

Take First Direct. The £20 cash difference is dwarfed by the overdraft and saver value for anyone carrying even a modest overdraft balance.

Step 1: Open a donor account (if needed). Most people already have a current account to switch from. If your only account is the one your salary lands in and you want to keep it, open a second basic account — Monzo and Starling open in minutes — and switch that one instead. You need at least two active direct debits on the donor account. Set up two £1 direct debits to charities (British Heart Foundation, Shelter, RNLI) — they activate within days.

Step 2: Barclays first (£200). The offer runs to 27 August 2026 — start here because it has a hard deadline. Pay in £2,000 — this can be salary, not a separate lump sum. Two direct debits. Paid within 28 working days.

Step 3: NatWest second (£200 + rewards). Once the Barclays bonus lands, switch to a NatWest Reward account. £1,250 pay-in within 60 days. The £4/month direct debit reward plus £1/month app login reward means £60/year minus the £24 annual fee (£2/month), netting £36/year from rewards. The 6% Digital Regular Saver (£150/month) adds approximately £58 in interest over 12 months. Bonus paid within 30 days.

Step 4: First Direct third (£200 + overdraft + saver). Switch the NatWest account to First Direct. £1,000 pay-in. The £250 0% overdraft costs nothing to have, even if you never use it. The 7% regular saver (£300/month) is the best linked rate on the market. Paid within 28 days.

Step 5: Santander fourth (£180 + £45 Amazon voucher). Switch the First Direct account to Santander. The £45 Amazon voucher is effectively cash for most households. Consider keeping this one: Santander Edge's 1% bills cashback (up to £10/month, £120/year) plus the cashback on spending makes it a strong ongoing account. There is a £3/month Edge fee, so net cashback is £84/year after the fee.

Total first-year value: £200 (Barclays) + £200 (NatWest) + £200 (First Direct) + £180 (Santander) + £45 (Amazon voucher) + £36 (NatWest net rewards) + £58 (NatWest regular saver) + £136 (First Direct regular saver) = £1,055.

Realistically, you will not max every regular saver for the full year while rotating accounts. A conservative estimate: £800 in bonuses + £45 voucher + £50 in rewards and saver interest over the holding periods = ~£895. Tax due: £0 for almost everyone.

What you give up: Four hard credit searches (typically 5–10 points each, recovering within 3–6 months). If you are applying for a mortgage, car finance, or any significant credit before January 2027, limit yourself to one or two switches or delay the exercise. Four searches in a year is fine for a healthy credit file; four in a month is not.

This strategy works because the 'new customer' restriction is per-banking-group, and we are targeting four separate FSCS authorisations: Barclays, NatWest Group, HSBC Group (First Direct), and Santander. You are accepting four separate invitations from four separate institutions.

For joint account strategies and how couples can double the take, see our joint bank accounts guide.