A SAVVY saver has shared how he and his family have made over £7,000 thanks to a Martin Lewis tip.
The man has explained how they boosted their bank accounts through switching bonuses.
1
Many banks offer cash switching bonuses if a new or existing customer transfers to one of their current accounts.
In most cases, the process can be done through the Current Account Switching Service (CASS).
The Martin Lewis fan called Gareth told moneysavingexpert.com how he and his family, including his wife, mum, dad and sister, have made thousands of pounds between them since 2018 by switching multiple times.
He said: “My family and I have benefitted from a combined £7,375 to date from bank switches in cash alone, plus £770 in vouchers!
“Many thanks for the efforts of the MoneySavingExpert team for providing up-to-date switch info.
“Especially important for regular switchers like me.”
What banks are offering switching bonuses?
Banks regularly offer new and existing customers switching bonuses if they transfer their current accounts across.
A current account is a bank account where you can store and withdraw money – most people use them for day-to-day transactions.
Most read in Money
You should always shop around if you are looking at switching and look out for any terms and conditions that could see you paying any extra fees.
You don’t always have to go for the first offer you see either – it might be worth waiting a couple of months to see if a better deal hits the market.
That said, there are four competitive switching offers available to banking customers currently.
NatWest and RBS
NatWest and the Royal Bank of Scotland has only recently launched its £200 switching offer.
Customers can swap across to a number of accounts, including the Select account, Reward account and Premier account.
Other options include the RBS Select or Ulster Select.
The NatWest Reward and RBS Reward accounts give switchers £200 up front.
Plus you get £5 cashback every month you pay in £1,250, login to the mobile app and pay out two or more direct debits worth £2 or more.
Some of the accounts, for example the RBS Reward bank account and the NatWest Reward account, require new customers to pay in £1,250 within 60 days.
Eligibility rules if you are switching to the other accounts vary – you should check out NatWest’s website for more details.
Crucially, you can’t get the £200 switching bonus if you have switched to a NatWest, RBS or Ulster Bank account since October 2017.
And you have to be switching from a non-Natwest account if you are switching to NatWest, a non-RBS account if switching to a RBS one and a non-Ulster account if switching to an Ulster one.
The NatWest Select account comes with no monthly fee, the NatWest Reward account has a £2 monthly fee to pay while the Premier Select account doesn’t have a fee.
The RBS Everyday account comes with no monthly fee.
Meanwhile, its Reward bank account has a £2 monthly fee and its Premier Select account has no monthly fee.
You can make the switch through the CASS service.
First Direct
First Direct is offering customers who switch to its 1st Account a £175 bonus.
But you have to pay at least £1,000 into the account within three months of opening it and switch your everyday banking to First Direct to get the free cash.
The offer is also only available to customers who are new to First Direct.
Anyone who has opened an HSBC account on or after January 2020 can’t apply for the bonus either.
Again, you can make the switch through CASS.
TSB
TSB is offering a £125 plus £75 add-on if you switch and stay on either its Spend and Save or Spend and Save Plus account.
You also have to log into the TSB mobile banking app or internet banking once, make a minimum of one debit card payment and have two active direct debits by March 24 this year to qualify for the £125 payment.
A direct debit is when money is taken from your account to pay for something. This might be your phone bill, for example.
To get the £75 payment, you have to do the following each month between April 1 and September 30:
- make at least five direct debit card payments
- pay at least £500 into your account
- have two active direct debits
It’s worth noting you have to pay a £3 monthly fee to maintain a Spend and Save Plus account.
There’s no monthly fee for the Spend and Save account.
You can make the switch through the CASS.
LLoyds
Lloyds is offering a £200 bonus to customers who switch to one of four current accounts, including:
- Lloyds Silver Account (with a £10 monthly fee)
- Club Lloyds Silver Account (with a £13 monthly fee)
- Lloyds Platinum Account (with a £21 monthly fee)
- Club Lloyds Platinum Account (with a £24 monthly fee)
With both the Club Lloyds Silver Account and Club Lloyds Platinum Account you can get £3 deducted from your monthly fee if you add £1,500 or more into the account each month.
This is going up to £2,000 from April 1 for both accounts though.
The bonus will be paid into your account within 10 working days of you starting the switch and will appear as cash credit.
Existing Lloyds customers can get the bonus too – so long as they haven’t received cashback from the bank since April 2020.
The deadline to start the switch is March 20, although you can complete it later on through internet or mobile banking.
You might be able to get a three-month interest free overdraft too.
But, be aware, you will have to start paying daily interest after this period.
You can make the switch through the CASS.
What is the CASS?
The CASS is a free service that lets you swap your old current account to a new one.
You just have to contact your new bank to apply for their current account.
If you are accepted, they will offer to make the switch for you automatically and ask you to choose a date to do it.
Your old bank should then talks to your new one and everything will be switched across, including your balance, direct debits and salary.
After this you will receive your new cards, log-in details and any PINS.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
