MARTIN Lewis has urged savvy savers to switch their bank account to pocket hundreds in free cash.
Switching offers are only around for a limited time and currently you could bag up to £175.
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With savings rates at rock-bottom and inflation pushing up the cost of everything from energy bills to the food shop, it’s a simple way to get some extra cash.
Martin Lewis’ MoneySavingExpert has looked at best switching deals currently available at the moment.
Switching bank account is easier these days than it used to be – we even spoke to one man who describes himself as a serial switcher and made £400 in a year from switching deals. .
All you need to do is open the new account and let your new bank know you’re switching over.
Give it your old bank details and it will do all the legwork of moving over direct debits and standing orders.
It takes just five minutes to fill in the form – and the switch is usually completed in seven working days using the Current Account Switching Service.
And that means you could have some spare cash in time for your summer holiday.
Watch out though – it’s crucial to read the terms and conditions to check if you’re eligible for the free cash before you sign up.
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Some banks won’t give you the money if you’ve been a customer before, while others want you to pay in a certain amount each month to qualify.
Here are best switching deals currently available:
First Direct
According to MSE, one of the biggest paying deal at the moment current comes from First Direct.
It’ll give you £175 free cash when you open a First Direct 1st Account and within three months and complete a switch from another current account.
You will also need to pay in £1,000.
It’s important to note though that you won’t get the case if you switch from HSBC or First Direct.
The £175 is then paid within 28 days. You can request the switch online or by phone.
Santander
Customers who swap from their current account to a Santander 1I2I3, 1I2I3 Lite, Everyday, Select or Private Current Account will get a £175 bonus.
To be eligible for the £175 payment, customers have to make the switch using the (CASS).
And within 60 days of the switch, they also have to have set up and be maintaining two active direct debits, deposit at least £1,000 and log in to online or mobile banking.
The £175 cash will be paid directly into their qualifying Santander current account within 30 days of the £1,000 being transferred.
Existing customers can switch in Santander branches and new customers can choose to switch either in branch or online.
On top of this, the bank will also give customers with these accounts, plus those on Santander Home and Santander Life Insurance policies, cashback on their gas and electricity bills for two months, from September.
The cashback will be paid by direct debit and the monthly cap will double from £5 to £10 per month.
However, to be eligible for the cashback, customers have to pay in at least £500 per month (excluding internal transfers) and have at least two active direct debits.
Anyone who has received a previous bonus for switching onto a Santander current account will not be eligible for the £175 bonus.
Natwest and Royal Bank of Scotland
NatWest and Royal Bank of Scotland is giving customers £175 in free cash.
To be eligible for the £175 payment, customers have to make the switch using the Current Account Switch Service (CASS).
New and existing NatWest and RBS customers will also be able to bag £36 a year in cashback.
The NatWest Reward and RBS Reward current accounts give those who switch £175 in cash and £3 a month in cashback, but the account comes with a £2 a month fee.
If you don’t want to pay £2 a months for the Reward accounts you can open a new NatWest Select or RBS Select account and still get the free cash bonus.
You won’t be eligible for the switching bonus if you opened up a new NatWest or RBS since October 2017.
You will only get the cash if you’re switching from a non-NatWest account to NatWest.
Nationwide
Nationwide‘s deal is unusual because you get more money if you’re already a customer.
New customers get £100 free cash when they set up at a FlexDirect account.
But if you already have a current account, savings account or mortgage with the building society, you’ll get £125.
MSE warns that the deal is a complicated one, so it’s worth doing your homework first.
You’ll need to have two monthly direct debits to qualify. The money will be paid within 10 days of the switch completing.
What else to consider before you switch?
It’s not just about the money if you’re considering moving bank, you should also consider aspects such as its customer service rating and what savings rates it offers.
Check whether it’s prone to service outages – in recent weeks, Bank of Scotland, NatWest and more have all suffered technical glitches.
And see how far the nearest branch is from you in case you need to pop in to do any banking.
And keep those terms and conditions in mind. You don’t want to go to the effort of switching only to find out you’re not eligible for the free cash.
