The best way to make cash easily through switching bonuses, is to have several current accounts set up with different banks. Then switch ones that you don’t use for your standard banking processes, as there is less aggravation.
Some switches don’t even require DIrect Debuts to be switched. I think the current ClubLLoyds switch doesn’t need any.
I’ve had 4 switching bonuses in the last month. My DH and I both had them from Nationwide, and we’ve done 2 into Club LLoyds too, plus have a Santander one in process. For each one, I’d say it’s 10 mins work and then needing to check everything gbhas completed as expected.
I write everything down meticulously such as any funding or DD requirements and when doing transfers, note down any DDs transferring and the dates. I have a series of standing orders set up, where money moves into accounts that require monthly funding, and then moves back to my main accounts or to another account that needs funding about 3 days later. With the pay-in requirement, the money does not have to remain, but can just be paid in. The same £1000 for example, can rotate round bank accounts and meet the funding requirements of 4 or 5 different accounts.
One thing to be aware of, is when you open new accounts you are credit checked. Some people prefer not to do lots of bank switching just before applying for a mortgage etc.
Interest rates are so low at the moment, that I see the switching bonuses as my substitute for interest rates and I’m keen to earn £500+ per year by putting in the little bit of work required. They key is to keep careful records and pay really careful attention to the requirements to qualify for the cash back and make sure you meet them…they usually relate to things like moving DDs as part of switch or setting them up, paying in X money or logging onto online banking. Obviously they hope you will then be a loyal customer for many years and make them lots of money, but there is nothing to stop you switching away very quickly, and as long as you meet the requirements set out by them, it’s fine. They know there are serial switchers out there, and they still make money because lots of people switching then stay for years and pay lots of fees for over drafts, credit card interest etc.
Bearing in mind that bank accounts online can be set up in less than 10 mins, I’d consider setting up a new one (simple one with no fees or complicated arrangements) and then look to switch that, rather than your main account.