Direct Debits so you can switch banks like a pro, by Be Clever With Your Cash on YouTube. 16 min 27 s.
- Video length
- 16 min 27 s
- Time to do it
- 30 minutes
- Difficulty
- Easy
- Steps
- 9
What you need
Steps
Check the switching offer terms first. Note how many active direct debits the new bank requires and by when. Some banks count only direct debits that have collected at least one payment.
Use a bill you already pay, such as energy, water, mobile or council tax. Set it up as a direct debit from the new account. This is the simplest active direct debit.
Set up a direct debit from your credit card balance if your card provider allows it. This creates an active direct debit without a new expense.
Open PayPal and link your new bank account. Set up a recurring payment or subscription that pulls a small amount by direct debit each month.
Sign up to Currensea or a similar card and choose the direct debit repayment option. This gives you another active direct debit on the new account.
Pick a charity you support and set up a small monthly direct debit, for example 1 pound. Charities accept these and it counts as active.
Open a savings account with an app like Plum or Moneybox. Set a monthly direct debit of a small amount from your new current account.
Set up a monthly direct debit into an investment account if you want the money to work harder. Keep the amount small and affordable.
Log in to the new bank app after a few days. Confirm each direct debit shows as active before you rely on it for the switch.
Tips and common mistakes
Keep every direct debit small so a failed payment does not cost you much.
Leave enough money in the account before each collection date to avoid returned payment fees.
Check the offer's small print, as some banks exclude certain direct debits or need them active for a set period.
Cancel any direct debits you no longer need once the switching bonus has paid out.
Questions
What counts as an active direct debit?
Usually a direct debit that has collected at least one payment from your account. Some banks accept a newly set up one, but check the terms.
Can I use the same direct debit for two switching offers?
No. Each direct debit is linked to one bank account, so you need separate ones for each account you switch.
How much should each direct debit be?
As little as 1 pound a month is often enough. The aim is to keep costs low while meeting the active direct debit rule.
This guide was drafted from the video's details and general task knowledge. It has not been checked against the full video. Check the video and relevant product instructions before following a procedure. Report a correction.
