MARTIN Lewis has explained how you can get up to £130 free cash before Christmas.
Banks are offering bonuses for switching your current account and if you make the change now, you could add some extra spending money to it.
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The money saving expert has explained in his weekly newsletter how you can get the free cash from seven different banks.
Switching bonuses were scarce for some time this year, but now you can get them from several, with First Direct and Santander ranked the best.
Mr Lewis said: “The festive season has become the bank switching season. There are currently seven banks offering to pay you to move, with Halifax the latest to join the party.”
The last time that this many banks were offering bonuses was back in 2015, he said.
“So if you want to boost your Christmas coffers they’re worth a look, unless your bank’s so good it gives you a foot rub on request, and free tickets to the Oscars,” he added.
But, you’ll need to check with each one if you’re eligible for the account, and that it suits your needs.
For instance, you need to pay at least £1,000 into the First Direct account and Nationwide requires at least two direct debits as well.
Check that the rest of the account suits your needs too, such as interest rates on savings, overdraft fees and cash withdrawal limits abroad.
You’ll usually have to be a totally new customer with the bank you’re switching to and you’ll also have to be quick, as a couple of these offers close soon.
When you switch you usually need to use the current account switching service, which means your old account will be closed.
But using it is hassle free and you’ll be switched over within seven days.
We’ve rounded up the key points of each cash bonus switching deal below, along with other account information, but make sure you check the full terms and conditions.
First Direct – £130
First Direct is offering up to £130 when you switch, as long as you haven’t banked with them before, or HSBC since January 2018.
You’ll need to apply for the account by November 22 and pay in £1,000 within three months and you’ll get your bonus paid within 28 days after that.
The account also gives you access to an account paying 1% interest for saving regular amounts between £25 and £300 per month.
There is also a £250 interest-free overdraft.
Santander – £130
Santander is also offering £130 when you switch to the 123 Current Account, 123 Lite Current Account, Everyday Current Account, Select Current Account or Private Current Account.
To get the bonus you need to pay in at least £1,000 and have two active direct debits set up within 60 days.
You’ll have until December 2 to switch, and if you are a Santander customer already you can get a current account switched from another bank.
Each current account is different, so check the terms and conditions and how it works first.
For instance the 123 Lite account also offers cashback but there is a monthly fee of £2 and you need to pay in at least £500 a month.
Nationwide – £100
Nationwide is offering £100 if you open a FlexAccount, FlexPlus or FlexDirect current account
You need to switch at least two direct debits to the account and you need to complete the switch within 30 days of requesting it.
You’ll get the cash within 10 days of completing the switch and according to Money Saving Expert the offer runs until early December.
Again, each current account is different, so check the terms and conditions and how it works first.
Halifax – £125
Halifax is offering £125 to switchers who open a Reward or Ultimate Reward account and it’s paid within 10 working days of completing.
You’ll need to pay in at least £1,500 a month otherwise you’ll have to pay £3 a month for it.
With an ultimate Reward account there’s a £17 monthly fee, but both these accounts come with benefits, so check if it’s worth the fees first.
You’ll have until December 14 to get the cash bonus, including switching and closing your old account.
NatWest – £100
NatWest is offering £100 to switch to their Reward accounts.
You’ll also get another £50 on top if you stay a year and make at least 10 transactions a month between January and September 2022.
The NatWest account offers rewards too, but there is a monthly £2 fee, so check it works out for you.
You’ll need to pay in £1,250 each month too and the offer ends on December 2.
RBS – £100
RBS is also offering £100 to switch to its Select, Select Reward, Premier Select or Premier Reward account.
You’ll also get another £50 on top if you stay a year and make at least 10 transactions a month between January and September 2022.
The deadline for the switch is November 18 at 5pm to get the bonus.
Each account varies so check how they work and that it suits you before switching.
Youu need to pay in at least £1,500 a month and log in to online banking by 30 December after making the switch to get the cash by January 28, 2022.
Virgin Money – £150 experience days or 12 bottles of wine
Virgin is offering a bonus when you switch to its M Plus account – but it’s not cash.
Instead you’ll get a Virgin Experience day worth £150 or 12 bottles of wine.
You’ll need to pay in at least £1,000 to a linked savings account after you open the current account.
How to switch current 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.
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