A £250 bank switch bonus has been confirmed as two major UK high street banks intensify competition for new customers, reigniting interest in current account switching at a time when household finances remain under pressure. Cash incentives for switching banks have become increasingly common, but a £250 offer sits at the higher end of what has been seen in recent years.
The confirmation has prompted many people to ask whether the bonus is genuinely available, who qualifies, and whether switching is as straightforward as the headline figure suggests. While the offer is real, it comes with conditions that customers must understand before making a move.
This article explains what has been confirmed about the £250 switch bonus, how bank switching incentives work, which customers are most likely to benefit, and what to consider before switching accounts.
Why banks are offering large switch bonuses
High street banks are facing intense competition from challenger banks, digital‑only providers and each other. Attracting a customer’s main current account is particularly valuable because it often leads to long‑term relationships and cross‑selling of products.
Switch bonuses are a direct way to encourage customers to move their everyday banking, not just open a secondary account.
What has been confirmed about the £250 bonus
Two major high street banks have confirmed £250 cash switch incentives for eligible customers who move their current account using the official Current Account Switch Service. The bonus is paid only after specific conditions are met and does not apply to all applicants automatically.
The payment is not a gift for opening an account alone.
Is £250 paid upfront
No. The £250 bonus is not paid immediately upon opening a new account. Customers must complete the switch and meet qualifying criteria before the bonus is released.
In most cases, payment is made several weeks after the switch is fully completed.
How the Current Account Switch Service works
The Current Account Switch Service allows customers to move their account from one bank to another within seven working days. It transfers balances, direct debits and standing orders automatically.
The service also closes the old account, reducing administrative hassle.
Who is eligible for the £250 bonus
Eligibility is usually limited to new customers who do not already hold a current account with the bank offering the bonus. Existing customers are typically excluded from switch incentives.
Some banks also exclude people who have previously received a switch bonus from them.
Conditions attached to the bonus
Most £250 switch offers require customers to meet activity conditions. These may include paying in a minimum monthly amount, setting up direct debits, or keeping the account open for a specified period.
Failing to meet these conditions usually means the bonus will not be paid.
Why banks require direct debits
Direct debits demonstrate that the account is being used as a main current account rather than a temporary holding account. Banks use this as a measure of genuine switching rather than bonus‑chasing.
Typically, two active direct debits are required.
Minimum pay‑in requirements explained
Some banks require a minimum amount to be paid into the account each month, even if the money is later withdrawn. This can include salary, pension income or transfers from another account.
The requirement is about account activity rather than income level.
How long the account must stay open
Most switch bonuses require the account to remain open for a minimum period, often several months. Closing the account early can result in the bonus being clawed back or not paid at all.
Reading the full terms is essential.
Are there tax implications
Bank switch bonuses are usually treated as cashback rather than income, meaning they are not typically taxed. However, tax rules can vary depending on personal circumstances.
Customers concerned about tax should check official guidance.
Why banks are competing now
Rising interest rates, changes in savings behaviour and cost‑of‑living pressures have made customers more willing to shop around. Banks are responding by increasing incentives to retain and attract account holders.
This competition has driven bonuses higher.
How £250 compares to previous offers
Historically, bank switch bonuses have often ranged between £100 and £200. A confirmed £250 offer represents the upper end of the market and reflects intensified competition.
Such offers tend to be time‑limited.
Are these offers guaranteed to last
No. Switch bonuses can be withdrawn or reduced at short notice. Banks often reserve the right to end promotions early if demand is high.
Delaying a decision can mean missing out.
What customers should check before switching
Customers should review account fees, overdraft charges and everyday banking features. A bonus may be attractive, but long‑term suitability matters more.
An unsuitable account can cost more than the bonus is worth.
Impact on credit scores
Using the official switch service does not usually affect credit scores. However, applying for an overdraft as part of the new account can involve a credit check.
Customers should be aware of this distinction.
What happens to overdrafts when switching
Overdrafts do not automatically transfer between banks. Customers must arrange a new overdraft with the receiving bank if needed.
This is an important consideration for those who rely on overdraft facilities.
Why some people switch repeatedly
Some customers switch accounts multiple times to take advantage of bonuses. While this is not illegal, banks monitor behaviour and may restrict eligibility for frequent switchers.
Long‑term account stability still matters.
Are joint accounts included
Some banks allow joint accounts to qualify for switch bonuses, while others exclude them. Where allowed, the bonus is usually paid once per account, not per person.
Terms vary by provider.
What existing customers should know
Existing customers of the banks offering the £250 bonus are usually excluded. Opening a second account rarely qualifies.
Switch bonuses are designed to attract new relationships.
How long payment takes
Once all conditions are met, payment is usually made within a set timeframe, such as 30 or 60 days. Delays can occur if criteria are not met exactly.
Banks typically communicate payment timelines clearly.
What to do if a bonus is not paid
If conditions have been met and the bonus is not paid, customers can contact the bank’s customer service team. Providing evidence of compliance usually resolves issues.
Formal complaints are rarely needed.
Why reading terms is essential
The headline £250 figure attracts attention, but the small print determines whether the bonus is achievable. Missing a single requirement can invalidate the offer.
Careful reading avoids disappointment.
Who benefits most from switch bonuses
People with simple banking needs, stable direct debits and flexibility to move accounts benefit most. Those with complex arrangements may find switching more disruptive.
Suitability varies by individual.
How this fits into wider banking trends
Switch bonuses are part of a broader trend toward customer‑focused incentives. Banks are using cash rewards to stand out in a crowded market.
Whether this continues depends on competition and regulation.
What has not been announced
There has been no confirmation that every customer will receive £250, no automatic payments without switching, and no government involvement in the bonus.
It remains a commercial promotion.
Key points to remember
The £250 switch bonus has been confirmed by two major high street banks, but it is conditional and time‑limited. Customers must complete a full account switch and meet specific criteria to receive the payment.
The bonus should be weighed against long‑term account suitability.
Final thoughts
The confirmation of a £250 bank switch bonus reflects how competitive the UK banking market has become. For eligible customers willing to switch their main account, the incentive can provide a welcome cash boost.
However, the smartest approach is to look beyond the headline figure. Understanding the conditions, checking account features and ensuring the switch fits your financial needs will help ensure the bonus is a benefit rather than a short‑term distraction.