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 £170.
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Writing in the latest MoneySavingExpert newsletter, Martin Lewis said 70% of people polled had NEVER switched their bank account or hadn’t done so in at least the last five years.
But, 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.
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 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:
HSBC – £170
According to MSE, the biggest paying deal at the moment current comes from HSBC.
It’ll give you £170 free cash when you sign up to its fee-free HSBC Advance account.
You’ll need to have at least two direct debits or standing orders set up to qualify AND pay in at least £1,500 within 60 days of opening the account.
The deal also isn’t available to those who have had an HSBC current account or an account with First Direct since January 2019.
You’ll get the cash within 30 days of HSBC confirming you’ve met the criteria.
First Direct – £150
Slightly less money, but First Direct does score highly for customer service – so this could be a good option if you’re thinking about more than just the money.
You’ll get £20 for opening a First Direct 1st Account and another £130 when your switch has been completed.
To qualify, you’ll need to pay in at least £1,000 within three months of setting up your account.
You also can’t have had an account with First Direct or HSBC since January 2019.
Lloyds Bank – £125 and perks
Lloyds is offering up £125 in free cash to those who open a Club Lloyds account – but there’s a bit of a catch.
This account has a £3 monthly fee (that’s £36 a year), so you should factor that in before you switch (although it is refunded if you pay in at least £1,500 a month).
The deal gets you certain “lifestyle benefits” such as movie streaming or magazine downloads, and you’ll get better mortgage and savings rates than other customers.
But you should consider whether the value of the perks offsets the monthly cost before you sign up to this one.
The deal is available until June 27, and you’ll need at least two direct debits going out of your account each month.
You also can’t get the money if you’ve got a switching bonus from Lloyds since April 2020.
The cash is paid directly into your account within three days of the switch completing.
Nationwide – £125
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.
Barclays recently announced it would close another 27 bank branches this year.
It is not alone – most banking groups are looking to cut the number of branches they keep open as more people use online banking instead.
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.
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