WHO doesn’t love free money? And all it takes is a simple switch.
Anyone who has a current account can move their money to another bank, often getting a cash bonus at the same time – and it’s much simpler to do than you think.
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Banks often offer customers “bribes” to move their money and First Direct and HSBC are both now offering a whopping £125 to anyone who makes the switch.
Previously First Direct was offering £100 but the online-only bank has increased the incentive to tempt more customers.
HSBC is offering £125 too but this is only for customers who open an Advance or Premier account.
For the Advance account you have to pay in £1,750 a month or £10,500 over six months and be approved for an overdraft and the Premier account has even stricter eligibility criteria.
Switching incentives: what’s on offer?
HERE are the switching incentives on offer and other key features of the accounts. Don’t forget to check it suits all your needs though, and that you’re eligible before switching.
First Direct
- FREE £125
- Paid within 28 days of switching, provided your eligible
- Best-rated for service among big banks
- 0% interest-free overdraft on first £250
- Need to pay in at least £1,000 in the first three months to qualify
HSBC Advance account
- FREE £125
- Paid within 20 days of switching, provided your eligible
- Access to an HSBC regular saver account paying 1%
- 0% interest-free up to £25
- Need to pay in £1,750 a month or £10,500 over six months and be approved for an overdraft
Virgin Money
- Free wine worth £138
- £50 donation to a charity
- 2% interest on up to £1,000
- Need to transfer at least two direct debits
The First Direct switching offer, which doesn’t have as high deposit requirements, is the top pick for money guru Martin Lewis.
In his weekly MoneySavingExpert newsletter Lewis said the First Direct account is now the “front-runner” for free cash switching, because not only do you get a cash boost, the bank is top-rated for service and offers a zero interest overdraft on the first £250.
While other banks might offer the same amount of cash or perks worth more for switching, it shows that other features of a bank account matter too, so you should compare it against all your needs.
You’ll also want to check the eligibility criteria for opening the account, like paying in a certain amount each month, or if you’ve had an account with them before (sometimes this means you won’t get the bonus).
If you’re going for the First Direct bonus, you need to be quick as it’s only available until July 12.
Switching is simple thanks to a service that means your new and old bank does pretty much everything automatically.
You can change bank accounts in just seven days as long as you’re eligible for the new account – check beforehand along with the features.
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.
Payments like direct debits are transferred too. You won’t have to arrange them all again.
You just need to tell the new bank you want to open an account and close your old one using the switching service.
Beware that if you just open the account and close the old one yourself, you won’t be eligible for the bonus – you need to use the switching service.
Halifax was until recently offering £100 to switch, but that ended in May.
And First Direct has previously pulled the bonus for a period of time before its availability now.
It’s always worth keeping an eye out for the bonuses that are on offer as they can come and go as well as increase, just like this First Direct one.
Virgin Money is offering a bonus too, and it’s perfect for wine-lovers -instead of cash, you’ll get 12 bottles of the tipple worth £138.
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