Introduction
📈 Investing Notice: This content is for informational purposes only and not investment advice. Investments can go up and down in value. Always do your own research and seek advice from a regulated professional. See full disclaimer.
One of the biggest hurdles in UK bank switching 2025 is meeting the direct debit (DD) requirement. Many offers require two active direct debits before paying your reward.
But here’s the catch: not everyone has enough regular bills to spare. The good news is that there are quick, low-cost direct debit options you can set up just for switching purposes.
there are quick, low-cost direct debit options you can set up just for switching purposes.
In this guide, I’ll explain:
- What counts as a direct debit (and what doesn’t)
- Easy, low-cost options to create “dummy” DDs
- Step-by-step instructions for PayPal direct debits
- Tips to ensure your bonus pays out smoothly
What Counts as a Direct Debit?
A direct debit is an instruction that lets a company collect money automatically from your bank account. It’s different from:
- Standing orders (you push money out manually)
- Card subscriptions (like Netflix or Spotify, which usually bill your debit card instead of setting up a DD)
Banks usually require “active” direct debits, which means a real payment must be taken, even if it’s just £1. Simply creating the instruction isn’t enough.
Best Easy Direct Debit Options for UK Bank Switching 2025
Here are tried-and-tested options UK switchers use to satisfy bonus requirements:
1. Charity Donations (£1–£2 per month)
- Many charities let you set up a direct debit from as little as £1.
- Popular examples include Cancer Research UK, British Heart Foundation, and WaterAid.
- Flexible, low cost, and always reliable.
2. Plum App (Weekly Depositor)
- Plum requires you to link your bank via a Direct Debit mandate.
- You can then set a weekly deposit as low as £1, which still counts as a valid direct debit.
- Funds can later be withdrawn, so in effect you’re “paying yourself.”
- Confirmation email proves the DD is active.
3. PayPal Direct Debit
- Setting up PayPal with your bank automatically creates a valid DD mandate.
- You can leave it as a mandate, trigger it manually, or link it to a recurring subscription.
Step-by-Step: How to Set Up PayPal Direct Debit
- Log in to PayPal.
- From the left menu, go to Pay & Get Paid.
- Select Money or Bank accounts and cards.
- Click Link a new bank account and add your current account (not just a debit card).
- Confirm and accept the Direct Debit Instruction (DDI). This creates the mandate.
- Optional:
- Use “Add Money” to transfer a small amount (e.g., £1) to PayPal, which shows up as an active debit.
- Or subscribe to a low-cost service (e.g., Spotify via PayPal). PayPal will then debit your bank account monthly.
🎥 Watch: Short video tutorial included, showing step-by-step how to set up PayPal as a direct debit.
4. Credit Card Minimum Repayments
- Most UK credit cards allow you to set up a DD for your minimum monthly payment.
- If you already have a credit card, this is a simple and cost-free way to create a qualifying DD.
Quick Checklist: Two Dummy DDs in 10 Minutes
- Set up a £1/month charity donation (e.g., Cancer Research).
- Open Plum and enable the £1/week depositor rule.
- Alternatively, link PayPal to your bank to create a free DD mandate.
- Confirmation email proves the DD is active.
That’s it, two valid direct debits that will satisfy most switching bonuses without adding ongoing costs.
Real-Life Example
Case Study: Sarah, London
Sarah wanted to switch to First Direct for their £175 bonus, which required two active direct debits. She didn’t want to move her council tax and broadband payments.
- She set up a £2 monthly direct debit with the British Heart Foundation.
- She linked PayPal to her new First Direct account, confirmed the mandate, and added £1 to her PayPal balance.
Result: Both DDs showed as active within 10 days, and Sarah received her bonus in just over a month.
Mistakes to Avoid
- Cancelling too early: Always wait until your bonus has been confirmed before cancelling any dummy DDs.
- Using standing orders: These do not qualify as direct debits.
- Forgetting timelines: Some banks require DDs to be active within 30–60 days of switching.
👉 Related: Best UK Bank Switching Offers 2025
Which Banks Currently Require Direct Debits?
As of September 2025:
- First Direct: 2 direct debits or standing ordersrequired.
- TSB: At least 2 direct debits plus card spending.
- NatWest / RBS: Direct debits required for Reward accounts.
- Barclays: Blue Rewards usually require active direct debits.
- Santander: 2 direct debits for Edge or 123 accounts.
⚠️ These terms can change, so always check the latest conditions before switching. Trusted sources include:
- MoneySavingExpert – Bank Switching Offers
- Be Clever With Your Cash – Cheap Direct Debits
Setting up direct debits doesn’t need to be difficult or expensive. By using the best easy direct debit options for UK bank switching 2025, you can unlock bonuses without hassle.
With charity donations, Plum’s weekly deposits, PayPal’s quick mandate setup, or credit card repayments, you can easily meet the requirements and unlock hundreds of pounds in switching bonuses.
By combining a dummy bank account strategy with quick direct debits, you’ll be perfectly positioned to maximise every switching offer.
What is the easiest way to set up a direct debit for switching?
Charity donations (£1–£2), PayPal, and Plum are the easiest and cheapest options.
Do standing orders count?
No, standing orders do not count as direct debits.
Can I cancel my dummy direct debits?
Yes, but only after your switching bonus has been confirmed.
Which banks require direct debits for switching?
As of September 2025: First Direct, TSB, NatWest/RBS, Barclays, and Santander
Can I use the same direct debits for multiple switches?
Yes, as long as you move the DDs to the new account each time.
Will PayPal always count as a direct debit?
Yes, if you link your bank account, PayPal sets up a valid DD mandate. Some banks may only count it once it’s been used (e.g., adding money or paying a subscription).
Can Plum deposits be withdrawn?
Yes. Plum allows you to withdraw deposited funds back to your bank, making it essentially a cost-free way to create a DD.
What happens if I forget to set up DDs in time?
Most banks give you 30–60 days to activate them. If you miss the window, you could lose the bonus. Always set them up immediately after your switch completes.
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