A SAVVY dad made £500 from switching banks – and has put some of the cash towards the cost of his daughter’s wedding.
Steve Hill, 63, has switched banks three times since early 2020.
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His latest switch from a NatWest Reward account to a Santander Edge account earned him a £200 bonus.
But rather than spend the cash on himself, Steve, from Ilkeston, near Nottingham, decided to use it to help pay towards the cost of a photographer for his daughter, Laura’s, wedding in April.
The dispatch manager said: “I promised her a few bits, but the photographer is £350 so when I saw the switching offer, I thought, ‘it’s £200 towards that’.
“And that’s what made me switch again.”
It’s not the first time he’s switched banks to score free cash.
He switched to a HSBC Advanced Account in February 2020 and used the £175 cash bonus on holiday in New York, USA, with his brother Adam later that year.
Then in November 2021, he switched to a NatWest Reward card and got a £125 cash bonus.
In total, he’s made £500 by switching three times.
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He said: “I do it through the CASS (Current Account Switch Service), but I’ve never had any issues, it happens seamlessly.
“All your standing orders, your direct debits. It’s easy to use. It takes about five minutes.”
Banks and building societies often offer customers cash switching bonuses if they transfer their current account across.
But there’s usually terms and conditions to receiving the money, such as depositing a certain amount of cash into the account within a specific time frame.
It’s worth timing your switch so that any direct debits come out after you’ve been paid too.
Steve added: “A lot of people on Facebook say bank switching bonuses are a scam, but it’s absolutely free money.
“It’s still money you wouldn’t have got. If you are in your overdraft you can soon claw your money back.
“What I’ve been through, nothing’s caught me out, but I make sure the switch happens after I’m going to be paid, so the direct debits come out at the right time.”
How can I get a bank switching bonus?
You can switch current accounts, in most cases through the CASS service.
Over 40 banks and building societies are signed up. You can read the full list on the Current Account Switch Service website.
All it involves is contacting your new bank to tell them you want to switch.
If your application is accepted the bank will then offer to make the switch for you and ask you to choose a date to do it.
Your old bank should then talk to the new one and everything will be switched across, including your balance, direct debits and salary.
What switching bonuses are on the market?
There are four switching bonuses currently on the market – with TSB, NatWest and RBS, First Direct and Lloyds.
Remember, you should always look at the T’s and C’s involved in switching to a new current account.
You might have to pay a monthly fee to maintain it.
Plus you might have to pay a certain amount into the account within a specific time frame to get the cash bonus.
You should also consider if the account has a fee – as this may wipe out the free cash you earn.
Check out if the current account has an overdraft facility as they can come in useful – but remember they should only really be used for emergencies.
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)
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 7, although you can complete it later on through internet or mobile banking.
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.
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
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.
NatWest and RBS
Meanwhile, NatWest and the Royal Bank of Scotland (RBS) have just launched a £200 switching offer.
Customers can move to a number of accounts, including the Select, Reward or Premier accounts.
Other options include the NatWest Reward and RBS Reward accounts.
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.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
