British people are famously loyal to their banks.
Unfortunately, the feeling is not always mutual.
While existing customers quietly leave money in accounts paying weak interest, banks are offering new customers as much as £220 to move across.
That creates a strange system where doing nothing feels safe, but can become the expensive choice.
Loyalty can be worth a fortune to the bank
A Hargreaves Lansdown survey of 3,000 British adults in August 2026 found that almost 2 in 3 savers had been with the same bank for more than a decade.
Only 34% said they had moved their money during the previous 12 months.
Using Financial Conduct Authority data, Hargreaves Lansdown estimated that staying put costs British savers around £12 billion in missed interest each year.
That is an estimate, not £12 billion physically removed from people’s accounts. It represents the potential difference between weak rates and more competitive alternatives.
The number is still useful because it shows how expensive inertia can become when millions of small balances are involved.
| Research finding | Reported figure |
|---|---|
| Savers with the same bank for more than a decade | Almost 2 in 3 |
| People who moved money in the previous 12 months | 34% |
| Hargreaves Lansdown survey sample | 3,000 British adults |
| Estimated missed interest each year | Around £12 billion |
Current accounts and savings accounts are different decisions
The BBC story combines 2 ways people may improve their position: switching a current account for a cash incentive and moving savings to earn a better interest rate.
They are related, but they are not the same thing.
Your current account handles salary, bills and everyday spending. A savings account holds money you do not need to spend immediately and may pay interest.
You can move savings without switching your main current account. You can also switch your current account while keeping savings elsewhere.
| Decision | What to compare |
|---|---|
| Current account switch | Cash bonus, service, app, overdraft, fees, branch access and ongoing rewards |
| Savings account move | AER, access restrictions, rate guarantees, tax and FSCS protection |
| Packaged account | Monthly fee against the real value of insurance and other benefits |
| Overdraft user | Interest and charges before any switching bonus |
How the £220 switching offer works
At the time of writing, HSBC’s standard current-account offer was paying £220 to eligible switchers.
MoneySavingExpert reported that applicants needed to complete a full switch through the Current Account Switch Service, move at least 2 Direct Debits, pay in a total of £2,000 and spend £500 using the debit card within 60 days.
Eligibility restrictions apply, including rules covering existing and previous HSBC or first direct customers. The offer can be changed or withdrawn, so the provider’s live terms must be checked before applying.
Other banks offer different bonuses, deadlines and conditions. A headline promising “free money” becomes less free if you miss one requirement.
Never switch for a £220 bonus without checking whether the new account could cost you more than £220.
What the Current Account Switch Service actually moves
The Current Account Switch Service, known as CASS, is offered by more than 50 UK banks and building societies.
A full switch normally completes in 7 working days. The new bank transfers the balance and moves incoming and outgoing payments. The old account is closed.
Payments sent to the old account are redirected to the new one for at least 3 years. The guarantee also covers charges or lost interest caused if something goes wrong with the switch.
| Full CASS switch | What happens |
|---|---|
| Account balance | Transferred to the new account |
| Direct Debits and standing orders | Moved to the new account |
| Incoming payments | Redirected |
| Old current account | Closed |
| Standard completion time | 7 working days |
| Payment redirection | At least 3 years |
Some services linked through open banking or third-party permissions may need to be reconnected. An overdraft is not automatically transferred and the new provider will make its own eligibility and credit decisions.
The savings rate may matter more than the bonus
A switching bonus is paid once. A competitive savings rate keeps working while your money remains in the account.
Imagine £20,000 earning 1% instead of 4%. Before tax, that is the difference between roughly £200 and £800 of interest over a year.
The gap is £600, which is nearly 3 times a £220 switching bonus.
This is only an illustration. Rates can change, some accounts restrict withdrawals and tax may apply depending on the saver and account type.
The point is that a flashy bonus should not distract from the ongoing return on a much larger savings balance.
Check protection before chasing the highest rate
Eligible deposits with a UK-authorised bank, building society or credit union are normally protected by the Financial Services Compensation Scheme up to the applicable limit per eligible person, per authorised banking group.
Different brands can share the same banking licence. Splitting money between 2 brands does not necessarily create 2 separate protection limits.
Check the FSCS status and banking group before moving a large balance. A fractionally higher rate is not worth misunderstanding where the money is held.
When switching may not be worth it
Do not switch blindly if you rely on an arranged overdraft, need branch access, have important linked products or are preparing for a mortgage application.
Opening accounts can involve eligibility checks, and repeated applications may appear on your credit file. That does not mean one switch destroys a mortgage application, but avoid creating unnecessary financial activity immediately before important borrowing.
Also check whether existing benefits will disappear when the old account closes. A £220 payment is not a bargain if it removes insurance, rewards or an overdraft facility worth more to you.
The best bank account is the one you check
You do not need to become a serial switcher with a spreadsheet containing 14 banks and the emotional commitment of a part-time job.
But checking your current account and savings rate once or twice a year can stop convenience turning into permanent financial inertia.
Compare the upfront bonus, ongoing benefits, interest, fees, customer service and protection. Read the eligibility rules before moving anything.
Your bank benefits when you never look elsewhere. You benefit when it knows that you might.
Related reading
Watch more from The Anxious Investor
For practical videos about saving, investing, property and building long-term wealth without the usual financial noise, subscribe to The Anxious Investor on YouTube.
Sources and further reading
- BBC News: How switching your bank account could earn you up to £220
- MoneySavingExpert: Best current accounts and switching offers
- Current Account Switch Service: The Current Account Switch Guarantee
- Pay.UK: Current Account Switch Service
- FSCS: Bank and building society protection
Written by Aren Deu | The Anxious Investor
Leave a Reply