Few can resist the lure of free money, but there is often a catch. Big name banks, however are putting their hands in their pockets in an attempt to lure customers, as MoneySavingExpert founder Martin Lewis explains.
The catch, well you just need to swap bank, something the Martin Lewis says 70% of those asked in a recent poll hadn’t done it in the last five years - or at all. So, taking to his regular newsletter, the money guru explained just how to cash in on the bank swap incentive.
He began: "Switching bank is one of the easiest ways to gain a little bit of extra cash. So, with incomes squeezed on all sides by higher prices and soaring bills, we make no excuses for rounding up the top offers to boost your coffers.”
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According to the people's champion, all you need to do is open the new account and let your new bank know you're switching over. The process involves closing an old account and auto-moving all direct debits, standing orders and payments to a new one, reported OK.
MoneySaving Expert explained: “To get the cash or other perks, you must usually be a new customer, pass a not-too-harsh credit check, and use the bank's official switching service. All accounts are available both as single and joint accounts.”
HSBC gives the best rate for this, offering new customers £170 in its fee-free HSBC Advance account. You'll need to have at least two direct debits or standing orders set up to qualify AND pay in at least £1,500 within 60 days of opening the account.
The deal also isn't available to those who have had an HSBC current account or an account with First Direct since January 2019. First Direct gives £150 split over two sittings. You'll get £20 for opening a First Direct 1st Account and another £130 when your switch has been completed. To qualify, you'll need to pay in at least £1,000 within three months of setting up your account.
Lloyds is offering up £125 in free cash to those who open a Club Lloyds account. However, this account has a £3 monthly fee, so you should factor that in before you switch – though this is refunded if users pay in at least £1,500 a month.
While Nationwide offer £100 - or more if you’re already a customer. New customers get £100 free cash when they set up a FlexDirect account. But if you already have a current account, savings account or mortgage with the building society, you'll get £125. You'll need to have two monthly direct debits to qualify and the money will be paid within 10 days of the switch completing.
