With rising costs of living impacting households all over the UK, many people are looking for new ways to earn some free cash. Last week Chancellor Rishi Sunak announced a support package worth £15 billion which will see people given hundreds of pounds in the coming months. Everyone in the country will get £400 to help with their energy bills following the news that the energy price cap could rise to £2,800 in October.
The new payments are the latest attempt to ease the financial concerns of millions of people being hit with rising living costs in recent months, including increases to supermarket costs, council tax, National Insurance and energy prices. However, charities have already warned thousands face being plunged into poverty unless more is done to help those most in need.
If you're looking for extra money, you could consider changing your bank as many banks offer free money when you switch. Money Saving Expert warns that to avail of the perks, you usually need to be a new customer, pass a credit check, and use the bank's official switching service. All accounts are available both as single and joint accounts.
Read more: All the financial support you can get in Wales if you're struggling to pay the bills
1. HSBC's simple £170 deal gives the most upfront cash. The fee-free HSBC Advance has a £170 sign-up bonus, by far the largest offered by any of the banks. You can apply on their website then switch within 30 days, but you'll need to pay in at least £1,500 within 60 days. You can't have had an HSBC current account, or opened a current account with its sister bank First Direct, since January 2019.
2. First Direct gives a free £150 which you can get by switching to the First Direct 1st Account. You get £20 just for opening a current account and can get the other £130 later if you call it to switch. First Direct also gives access to a linked regular saver which pays 3.5 per cent interest on up to £300 a month, and many get an ongoing £250 zero per cent overdraft. To qualify, open and switch and pay in £1,000+ within three months. You can't have had any First Direct account before, or opened a current account with its sister bank HSBC since January 2019.
3. Lloyds Bank gives a free £125 to switchers via its Club Lloyds and is fee-free, provided you meet its £1,500 a month minimum monthly pay-in (it's £3 a month if you don't). You also get to pick one of these four perks for the year: six free cinema tickets (worth £35-£65, depending on location), 12 digital movie rentals (worth around £55), a magazine subscription (worth £30-£50) or a Gourmet Society membership (worth around £40). To qualify, apply and start a switch before Monday June 27. You're ineligible if you've had a switch bonus from Lloyds since April 2020.
4. Nationwide's free switchers' £100 is across a range of accounts, but the fee-free Nationwide FlexDirect offers a year's zero per cent overdraft - though the limit depends on a credit check. So you can switch and use the £100 to reduce your overdraft, then get rid of the rest of the debt within the year. After that it jumps to the 39.9 per cent EAR variable that most banks charge.
If you're an existing Nationwide member (ie. if you have a current account, mortgage or savings with it), you can get a boosted £125 to switch. To avail of the £100, apply then switch within 30 days. There's no minimum pay-in.
5. Virgin Money doesn't offer you cash, but instead gives you 20,000 points with a Virgin Money account which are swappable for rewards, including 12 bottles of wine, two per cent interest and fee-free overseas spending. It pays a 2.02 per cent AER variable in-credit interest on up to £1,000, and its linked savings account offers one per cent interest on a further £25,000. To qualify for the 20,000 points you apply online, switch within 45 days, pay in £1,000+ to its one per cent linked savings account, use the mobile app and have/set up at least two direct debits. You'll then be emailed a code to claim your Virgin points. You can't have had a Virgin Money current account (or have closed one since January 2022) and can't have ever had a switch bonus from the bank.
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