We all love bank switching rewards, but the direct debit requirements are starting to make it harder for people to get their hands on the free cash.
In this post, we'll show you the cheapest (and fastest) direct debits available.
We thought we'd put ourselves at the top of the list because, well, we're the cheapest!
30 Pence Direct Debit is the cheapest, fastest and most transparent Direct Debit available in the UK.
We offer our service 'at-cost', which means we make no money from this service.
For every 30p, our payment processor takes 21p. The remaining 9p isn’t even enough to pay our hosting & maintenance costs.
> Click here to set up a 30p Direct Debit.
Wait, why is this so cheap?
Times are tough, and people rely on bank switches to help them through difficult periods.
We wanted to provide the cheapest possible option so people can keep more of their money. Our payment processor won’t even accept charges below 30p!
However, this means we lose money on our 30p plan.
Unlike other options on this list, we're not trying to squeeze you for profit.
So if you are in a position where you can afford it, consider choosing a higher priced Direct Debit to help us continue to operate.
If you can't, that's fine too!
> Click here to set up a 30p Direct Debit.
You could refer to One Pound DD as the original 'Direct Debit As A Service'. They've been in the bank switching space for a long time.
Similar to 30 Pence, they'll offer you a Direct Debit for the purpose of bank switching for the low cost of £1.
They are a popular option in the bank bonus community.
If you don’t mind paying a bit more, they’re a great option, and a very reliable one too!
If you're hoping to make a bit of money from a bank switch offer, why not consider donating some of your 'profit' to charity?
These low cost Direct Debits are a great, low cost way to meet bank switch requirements, whilst making regular payments to a good cause.
Some of the cheapest charity Direct Debits are:
Unicef - Humanitarian Aid Worldwide
Shelter - Tackling Homelessness & Poverty in The UK
Amnesty International - Supports Various Worldwide Cause
WomenKind Worldwide - Tackling Womens' Issues Worldwide
Young Women's Trust - Supporting Young Women With Various Issues
Whichever way you cut it, you have to spend money on Direct Debits to qualify for your bank offer.
But, there is a way to 'keep' this money...
You can set up a regular payment to a digital savings account such as Plum or Moneybox.
They will ask for your bank details when you sign up and deduct money every week to fund a savings account in your name.
Plum has a minimum weekly deposit of £1 and Moneybox has a minimum of £2.
You can then withdraw these funds at a later date, essentially making them a 'free' direct debit, perfect for switching incentives.
However, Plum & Moneybox are a bit of a hassle to set up compared to something like 30 Pence, which only takes 30 seconds ;)
You can also attach your bank account (not your debit card!) to your Paypal account, and they will initiate a bank connection via direct debit.
This is 'free' but I recommend making a transfer to your Paypal wallet to speed up the process.
Note: I do not recommend this strategy if you need a DD quickly. In my experience, it takes too long.
If you're looking for more options to reach your direct debit requirements for bank switching incentives, credit card direct debits can be a good option.
Just pay off your credit cards via direct debit and boom! You've just got another direct debit.
Contact your credit provider and they should help you set this up.
Water bills, electricity, and gas can also be paid off by setting up a direct debit.
This allows you to leverage your normal expenses for bank switch bonuses, making it 'free' - kind of?
However, I don't actually recommend using credit card OR bills for switch offers...
Why? Because these are important expenses, and things can go wrong during bank switches.
It's not uncommon for direct debits to fail after switching (even though banks say they switch everything smoothly).
Leave your 'normal' bank account alone, and switch with a burner account.
Learn more about burner accounts in our quick guide here.
Many banks are asking for ‘at least 2 active direct debits’ to be switched in order to qualify for an incentive, but there’s a bit of a debate in the bank switching world…
“What is an active direct debit?”
To be considered active, a direct debit must:
Quarterly and annual direct debits will not be considered active for the purposes of a bank switch.
It’s important to note that subscriptions for things like Spotify & Netflix are not Direct Debit payments and will not count towards your bank switch.
Monthly payment that uses a debit card or credit card are just a recurring card payment. Direct Debits require you to share your account number and sort code.
A direct debit is a financial arrangement that allows an organisation to withdraw funds directly from a customer's bank account on agreed dates.
This method is often used for recurring payments such as utility bills, subscriptions, and loan repayments.
Banks basically use Direct Debits as a way of qualifying new customers.
They use them as a way to ensure that new customers will:
They want to make sure that you’re not abusing bank switch bonuses and are a real human that has bills to pay. This in turn, helps them justify the cost of paying you a switch incentive.
As a result, banks usually enforce Direct Debit requirements for all switch offers.
When you switch your bank account, your new bank can transfer all existing direct debits from your old account.
This ensures that all your regular payments, such as mortgage payments, gym memberships, and insurance premiums, continue without interruption.
Banks change their offers regularly, and sometimes remove them completely when they've gained enough new customers.
To make it easy to keep up, we put together a blog post detailing The Best Bank Switch Offers that we regularly update. We want to make sure you never miss out on a new switch!
We recommend using a burner account solely for the purpose of switching.
Basically, don’t switch your existing main bank account (unless you’re unhappy with their service, fees, interest rate etc).
Use a bank like Chase, create an instant bank account, then bring your account number and sort code over to 30 Pence, and follow the setup instructions.
When these charges are confirmed on your burner bank account, you can begin the switch to the new bank that is offering an incentive.
This is a fundamental protection for customers. It ensures that in the event of an error, you are entitled to a full and immediate refund from your bank. 30 Pence abides by this guarantee 100%.
The Direct Debit guarantee covers situations such as incorrect payment amounts or payments taken on the wrong date.
Businesses are required to notify you in advance of any changes to the amount, date, or frequency of a direct debit. This helps you prepare for and manage your payment arrangements without surprises.
You have the right to cancel a direct debit at any time. If a payment is taken in error, you can claim an immediate refund from your bank.
