MARTIN Lewis has revealed an easy trick to get up to thousands of pounds in free cash in minutes.
Currently, four major banks are offering switching bonuses and it can be a great way to bag some free cash.
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In recent weeks there has not been much in the way of bank switching bonuses but now the competition is hotting up.
The latest MSE newsletter revealed that four major banks now have switching offers that could earn you some cash in just minutes.
For example, you could earn up to £200 at the moment by switching over to a Nat West or Royal Bank of Scotland account.
Throughout the year most banks tend to offer some kind of incentive to get customers to switch to them.
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However, there are usually certain criteria that you need to meet to get the free cash, so make sure you check all the details before signing up.
Some people are quite nervous of switching as they think that they will have to do all the work themselves, but that is not true.
In most cases to qualify for the switching offer you need to complete the switch through the current account switching service (CASS).
If you are savvy you can earn thousands by taking advantage of multiple switching offers throughout the year.
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It is worth bearing in mind, however, that while it can be profitable, switching your bank can impact your credit rating in the short term.
Therefore if you have an important credit application you are looking to make soon, such as a mortgage, it could be worth holding off until after that.
Also, as tempting as it might be to switch for a cash boost, do make sure you check all of the terms and conditions to make sure the account is right for you.
Santander
- Free £185 cash, plus 1% bill cashback and 7% easy-access savings
This offer from Santander is open for new and existing customers switching to an eligible Santander UK current account.
The qualifying accounts are an Everyday current account, Santander Edge current account, Santander Edge Up current account or Private current account V2.
According to MSE the standout is the Santander Edge account which was a “top-pick for bills account.”
The Santander Edge account costs £3 per month to have and requires you to pay in £500 plus a month.
In the past year alone, we’ve made £1,000, everyone should try it
Angus, MSE fan
This account also has two ongoing sets of cashback available up to a maximum of £10 each.
Customers with this account can earn 1% cashback when spending on supermarket, fuel, train and bus travel spending.
Also 1% on water, council tax, energy, broadband, phones and any paid-for TV bills that are paid for out of the account.
Households who have average bills leaving the account can typically earn £80 to £100 a year after the monthly fee for the account is deducted.
With this account you also get access to a years 7% variable savings for up to £4,000 – if you save the maximum this means that you will get £280 interest.
If you have a lot of outgoings you could opt for the Santander Edge Up account for the chance to get more free cashback.
The cost of the account is slightly higher at £5 per month but the cash-back cap is higher at £15 rather than £10.
To qualify for the £185 switching bonus you will need to do the following:
- Complete the full switch within 60 days of requesting the switch process.
- Pay in at least £1,500 within 60 days – this does not need to be in one payment.
- Set up two active direct debits within 60 days – direct debits to fund Santander, cahoot or Cater Allen savings do not count.
- Continue to hold the qualifying current account on the day the payment is made.
Those who are eligible for the payment will get paid within 90 days of the switching process.
New customers can switch online through the Santander website, over the phone or in a branch.
Existing Santander UK customers must visit a branch to take advantage of the offer.
NatWest and Royal Bank of Scotland
- Free £200 cash plus up to £36 a year cashback and you will get access to a 6.17% regular savings
NatWest and Royal Bank of Scotland (RBS) are offering customers who switch to one of their eligible accounts a £200 bonus.
People who switch to an Everyday, Reward or Premier account using the CASS, can get the cash if they meet certain criteria.
To qualify for the bonus you will need to:-
- Deposit £1,250 into your new current account and log in to the mobile banking app within 60 days of switching.
- Have not received any previous switching incentive from the NatWest Group, since Jan 1, 2020.
When you do this, the money will be paid into your account within seven days.
Customers can also earn up to £5 cashback when using their card, but they will need to pay a £2 monthly fee.
This could mean a potential £36 extra cashback over the year in total.
The Everyday current account from both banks doesn’t offer cashback but is fee-free.
Meanwhile, there are three Premier accounts to choose from: Premier Select, Premier Reward and Premier Reward Black.
There’s no monthly fee for the Premier Select account, but there is a £2 and a £31 monthly fee for the Premier Reward and Premier Reward Black accounts, respectively.
Lloyds
- Free £175 cash plus perks such as Disney+ and you will also get access to a 6.25% regular savings account
As well as offering free cash Club Lloyds pays switchers £175 and either 12 months Disney+, 6 cinema tickets, Gourmet Society and Coffee Club membership or a magazine subscription.
The Lloyds’ offer is only available to customers who switch to a Club Lloyds, Club Lloyds Silver or Club Lloyds Platinum current account.
Customers must switch from any current account to Lloyds by Thursday, March 28 to avoid missing out.
To qualify for the free cash you need to do the following:
- Switch and pay in £2,000 a month or there is a £3 a month fee.
- The account you switch must have two direct debits.
- You must make sure you have not had any switching cash from it since April 2020.
Customers can also put £400 a month into a one-year regular saver at 6.25% which if you max out, will earn £161 interest, according to MSE.
The bank switch must be done using the Current Account Switching Service (CASS).
HSBC
- Free £100 plus £10 a month cashback for a year and access to a 5% regular savings
People who switch to a HSBC UK Advance or Premier account can get £100 switching bonus when they switch to either qualifying account.
There is also a chance to increase the amount you get to £220, and we explain below.
Just for switching their bank account customers can get one lump sum payment of £100, you can then earn £10 a month cashback for 12 months meaning potentially you could earn £220 free cash.
Certain criteria must be met to get the full £220 and the switching process must be done through CASS.
In order to get the first £100 payment, you must meet the following criteria:
- Apply for a HSBC Advance or Premier bank account on or after March 11 and successfully open the account
- Switch an existing account from another bank using the CASS within 30 days of opening the account
- The switch must include at least two direct debits or standing orders
- Within 60 days, deposit at least £1,500 into the account over one or more payments
- Make a minimum of 20 transactions using your HSBC debit card
- Register and log on to mobile banking
- Open an Online Bonus Saver account and deposit at least £50
If new customers complete all the above steps, they will receive £100 into their current account within 30 days.
To get your hands on a further £120, customers must continue to complete a number of the above steps each for a further 12 months.
Customers must continue to log onto mobile banking, pay in £1,500, make a minimum of 20 transactions and keep their direct debits active each month, with the addition of making a monthly deposit of £50 in their online bonus saver account.
For each month they meet this criteria, £10 will be paid into their account up to a maximum of £120 – or 12 monthly payments – by the 20th of the following month.
However, the extra cash depends on meeting the criteria, so if you miss a month, you will miss out on that month’s £10 bonus payment.
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One Martin Lewis fan said he has made £1,000 in the past year thanks to bank switching.
Angus wrote: “Thanks to your guidance, in the past year alone, we’ve made £1,000 – £200 each from TSB, £125 each from Co-op, and £175 each from Barclays. It’s so simple, everyone who’s able should try.”
How do I switch bank accounts?
SWITCHING bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS).
Dozens of high street banks and building societies are signed up – there’s a full list on CASS’ website.
Under the switching service, swapping banks should take seven working days.
You don’t have to remember to move direct debits across when moving, as this is done for you.
All you have to do is apply for the new account you want, and the new bank will tell your existing one you’re moving.
There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account.
You should get in touch with your existing bank for any old statements.
When switching current accounts, consider what other perks might come with joining a specific bank or building society.
Some banks offer 0% overdrafts up to a certain limit, and others might offer better rates on savings accounts.
And some banks offer free travel or mobile phone insurance with their current accounts – but these accounts might come with a monthly fee.
