Cheap Direct Debit ideas for bank switching and rewards
Ways to get the Direct Debits a switching or rewards offer asks for, from bills you already pay to saving, charity and credit card payments.
Start with payments you already make. Bills, a credit card repayment or regular saving into your own account can all be genuine Direct Debits that cost you nothing extra. Only pay for a new one if you still need more, and check your offer’s rules before you do.
Direct Debits are not a general requirement for switching banks. Some switching offers require qualifying payments to earn the reward; others do not.
Three checks before you set anything up
- Is it a genuine Direct Debit? Many monthly subscriptions are charged to your card, which isn’t a Direct Debit. Look for it under Direct Debits in your banking app. What counts
- Is it on the right account? Switching offers usually need Direct Debits on the account you’re switching from, so they move across in the switch.
- Does it collect regularly? A payment that collects every month is the safest choice when an offer says “active”. What active means
At a glance
| Option | Extra cost to you | Watch out for |
|---|---|---|
| Bills you already pay | None | Some offers require household bills; others are fine with any payee. |
| Credit card repayment | None, if you clear the balance | It only collects when there’s a balance to pay. |
| PayPal | None | Several PayPal payments may count as one Direct Debit. |
| Saving or investing into your own account | None: the money stays yours | Minimums, withdrawal limits and investment risk. |
| Charity donation | The donation | Minimums vary, and setting one up has a cost for the charity. |
| Subscriptions paid by Direct Debit | The subscription | Check it really collects by Direct Debit, not card. |
| Specialist Direct Debit service | From 40p to £1 a month each, as advertised | Some offers exclude subscription payments. |
1. Bills you already pay
Energy, council tax, water, phone, broadband and insurance are often paid by Direct Debit already. If you pay any of them by card or bank transfer, switching that bill to Direct Debit may give you the payment you need at no extra cost. Check the supplier’s monthly price first: some charge more for paying monthly than annually.
Streaming and app subscriptions are usually charged to your card, so they won’t show up as Direct Debits.
2. A credit card repayment
Setting up a Direct Debit to pay your credit card bill creates a regular Direct Debit, but it only collects when there’s something to pay. If you rely on it, use the card each month and clear the full balance to avoid interest.
3. PayPal
PayPal can collect money from your bank account by Direct Debit. If several of your payments go through PayPal, your bank may see them all as one Direct Debit to the same business. Our PayPal guide explains more.
4. Saving or investing into your own account
Some savings and investment providers collect regular contributions by Direct Debit. The money stays yours, so the only cost is having it set aside. Before you choose one, check the minimum contribution, any limits on withdrawals, and whether the Direct Debit will move with the switch. Investments can fall as well as rise in value.
5. A charity donation
A small regular donation can be a genuine Direct Debit. Minimum amounts vary by charity. Setting up a Direct Debit costs the charity money too, so it’s kinder to keep a donation going for a while rather than cancel it straight after your switch.
6. Subscriptions that collect by Direct Debit
Some newspapers, memberships and lotteries collect by Direct Debit. Check the minimum monthly cost, how long setup takes, and that payments really are taken by Direct Debit rather than card.
7. A specialist Direct Debit service
Several services exist just to provide a small Direct Debit for switching offers. You pay a small monthly fee and get nothing else in return. They’re useful when you’re short of payments and don’t want to change your bills, but some offers exclude subscription payments or require household bills. We compare advertised prices in our comparison guide.
Rewards accounts, not just switches
Some current accounts pay monthly rewards, cashback or interest as long as you keep Direct Debits running. Unlike a one-off switching bonus, that means the Direct Debits need to keep going for as long as you want the reward. Low-cost options you’re happy to keep, like bills or saving into your own account, suit this best.
We run Switch Direct Debit, one of the specialist services in option 7. We’ve listed the free options first because they’re often the better choice.