Switching UK bank accounts could net savers up to £220 in bonuses

Research by Hargreaves Lansdown involving 3,000 British adults reveals that nearly two-thirds have remained with the same bank for more than ten years, leading to an estimated £12bn in lost interest annually. To break this loyalty, over five banks are offering cash rewards, the top of which reaches £220, alongside more attractive savings rates. Simon Belsham, chief client officer at Hargreaves Lansdown, warns that doing nothing often results in poor returns, while Sarah Coles of AJ Bell notes that banks use these incentives to build a captive customer base for future product sales.

The switch can be executed through the Current Account Switch Service, which handles most transfers but may temporarily impact credit reports if many accounts are opened in quick succession. Consumers are advised to consider factors such as overdraft fees, service reputation, and the terms attached to any bonus before deciding to move. Downloading old statements beforehand is recommended, as they become inaccessible after the transfer.