Martin Lewis explains how to get up to £125 free by switching banks

MARTIN Lewis has explained how you can get a handy cash bonus, just by changing bank.

The money saving guru alerted readers to three banks offering switching bonuses in this week’s Money Tips email.

Martin Lewis has explained how Brits can bag up to £125 just by switching bank account providersCredit: ITV

Brits can get up to £125 cash just by swapping providers and meeting any terms and conditions from the bank.

Of course, before you switch you need to make sure that you’re not missing out in other ways, for instance lower interest, poor customer service or worse savings rates.

But if the one of the banks offering a bonus is a good fit for you, a simple swap, which will take less than seven days will leave you quids in.

Here’s all the banks currently offering cash incentives for current accounts:

HSBC is paying customers £125 to switch, the highest reward amount available at the moment.

You don’t need to be a brand new customer, but you can’t have opened an HSBC or First Direct current account since January 1 2018.

To get the cash, you must start a switch within 30 days of opening the account and you need to transfer across two or more direct debits / standing orders and pay in at least £1,750 each month.

The account gives you access to a regular saver account paying 1% interest, where you can pay £250 each month. For your overdraft you get a £25 buffer at 0%, then 39.9% EAR variable. Interest on current accounts in credit is 0%.

How to switch bank accounts?

NOT sure what switching could do for you? Here’s what you need to know:

Switching is easy. Under the switching service, swapping banks should take seven working days. That includes all your payments, direct debits and standing orders being moved too. Just open your new account and then ask your new provider to close your old account using the switch service.
Make sure you are eligible. Most accounts have certain requirements, such as paying in a minimum amount of cash each month.
Watch your overdraft. Check your new bank will offer you the same limit — and does not have higher costs for using it.

First Direct will pay you £100 to switch, but you need to pay in at least £1,000 in the first three months to qualify.

The reward is only available to people who haven’t previously held an account with First Direct, and / or have not opened a HSBC or M&S Bank current account since January 1 2020.

The account also gives you access to an account paying 1% interest for savings between £25 and £300 per month and you get a £250 interest free overdraft.

Halifax is also offering a £100 switching bonus, but the deal is only available till May 4.

Be warned, the account comes with a £3 monthly fee but if you pay in £1,500 or more each month the fee is waived.

You can also get lots of other perks including 15% cashback and movie rentals, magazines, cinema tickets or £5 in cash a month but you have to meet certain terms and conditions.

You’re eligible as long as you haven’t had a switching bonus from Halifax since April 2020. That means existing customers can benefit, but you need to switch into a new, separate Reward account to qualify.

Even those these three banks are the only ones offering cash bonuses, it doesn’t mean that they should be the only options you consider.

There are also lots of other perks available like access to higher interest savings accounts, free subscriptions, free travel insurance and cashback.

Before you switch, make sure you shop around to ensure that you’re getting the best possible deal for you.