CONSUMERS can get up to £150 cash for free by opening new bank accounts.
Five banks currently offer these bonuses – four pay straight cash, and one gives a gift card and a bonus interest rate.
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First Direct 1st Account is offering a free £150 payment to switchers, up from £130 previously, according to MoneySavingExpert.
To claim the freebie, you need to open a 1st Account, switch using the Current Account Switch Service and pay in at least £1,000+ within three months of opening.
Once you’ve done that and First Direct ticks off your eligibility, you’ll receive the money within 28 days.
However, to qualify you can’t have ever had any First Direct account before, or opened a current account with its sister bank HSBC since January 2019.
Meanwhile, NatWest is also offering £150 if you switch to its Reward account.
Launched on 25 January and due to close on 7 April, the scheme will also include a cashback of up to £36 per year if you use its mobile app and pay out two £2+ direct debits every month.
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Both new and existing customers switching from a non-NatWest account are eligible, as long as they’ve not had switching cash from NatWest, RBS or Ulster Bank since October 2017.
You’ll need to pay in at lease £1,250 and use mobile banking by 12 May before you can receive the bonus, which will be paid by 9 June.
Another offer that’s open to new and existing customers is by Santander, which pays £140 to switchers.
Similar to First Direct and NatWest, this must be your first switch bonus from Santander, and you can’t switch an account from Santander, Cahoot or Cater Allen.
How to switch bank 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.
Other banks are also advertising offers for consumers looking to open a new bank account.
Nationwide’s FlexDirect pays up to £125 to new customers.
Anyone switching from a non-Nationwide account can qualify, unless your existing account’s in debt collection or has been frozen.
Meanwhile, Virgin Money is tempting users with a £100 experience day voucher, plus 5.02% interest on up to £1,000 for a year.
Be sure to check all the eligibility criteria before signing up as you might be required to pay in a certain amount to qualify for the freebie.
Rachel Springall, Finance Expert at Moneyfacts.co.uk, said: “Consumers looking to switch their current account will be pleased to see an array of free cash and perks launched which may entice them.
“Those who switch using the Current Account Switch Service (CASS) could get either an upfront free cash incentive or perk as providers heat up the market with new offers to fight for new business.
“As we have seen with HSBC withdrawing its £150 offer last week, there is no guarantee such lucrative perks will remain on offer forever, but this time of year tends to be a popular one for providers to launch offers.
“As the cost of living is expected to rise, consumers may be tempted to grab a free cash perk, but it is imperative they weigh up the overall package of any account before they commit and be sure it suits their needs.”
One savvy switcher has revealed how he managed to make £400 a year by changing banks.
Meanwhile, a budgeting expert has shared just how many bank accounts you should really have for your financial goals and bills.
If you have savings but are not sure where to put them, here’s a round-up of your best options depending on how much money you have.
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