Financial guru Martin Lewis has explained how those switching bank accounts can get around minimum monthly pay-in amounts. Those who are frustrated with poor service with their current bank are being implored by Martin to switch bank accounts, as many are offering cash to those who switch to their services - perfect for those who are worrying about their finances in the lead up to Christmas.
On tonight's episode of 'The Martin Lewis Money Show', the founder of MoneySavingExpert explained how people can make free cash by switching bank accounts. However, each bank provides certain conditions, including minimum pay-in amounts, which may put some switchers off - although Martin has provided some sterling advice on how you can fulfil these minimum amounts.
The 50-year-old talked the audience members and those watching along at home through some of the hottest bank account switch details available at the moment. He said: "This is for newbie bank account switchers. Now, to do this, you must switch using their official switching service - there's a relatively easy credit check you'll have to pass, too."
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Martin continued: "It usually takes seven working days to switch, so, in reality, that's nine or 10 days. They will usually close your old account for you, they will automatically shift over the direct debits and the standing orders, and any payments will be auto-forwarded to your new account for three years but let the people paying you know your new account details as soon as you can."
The financial expert then explained that there are currently three banks offering hot new switching deals, with "big payouts". He said: "Perhaps the standout is Nationwide FlexDirect that gives a free £200, also 5% interest and up to £1,500 for a year. It's got a 0% overdraft too, and the customer service rating is pretty good there.
"It's also paying quickly after your switch is complete, so that'll be nine or 10 days time. It then pays within ten days of the switchover, provided you meet the terms and conditions, which include things like: you've got to have two direct debits moved across.
"HSBC is similar on that. So, my reckoning is, if you switch tonight or tomorrow, you should have the money by December 5 in your bank account.
"To qualify for this, it has a minimum pay-in, which is £1,000 per month. That is effectively the bank's way of saying, 'pay your salary in each month', and it needs to be a £12,000 salary.
"As a work around to this, here's what you do. Let's say you're only paid £900 a month, well, you get your £900 in there, you withdraw £100 and you pay it back in the next day. You've now paid in £1,000 and you've met the criteria - simple as that."
Martin also mentioned the deal HSBC is offering new customers, with those who switch to the bank being given a free £200. Meanwhile, first direct is giving new customers a slightly lower amount of £175, although it has the top customer service rating.
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