If you are beginning to feel the financial pressure following increases to energy and utility bills coupled with soaring inflation rates affecting the cost of food and fuel, a quick way to boost your cash flow is to get paid for switching your bank account.
Three banks are currently offering free cash incentives worth up to £150 - First Direct, Halifax and Nationwide while Virgin Money is giving switchers an impressive 20,000 Virgin Points to spend with Virgin Red which can be exchanged for return flights to hundreds of destinations around the world.
More than eight million current accounts have been switched since the Current Account Switch Service (Cass) launched in 2013 to take the hassle out of moving providers.
Under the scheme, switches are completed in seven working days compared with up to 30 before the initiative was launched.
Payments are automatically moved over to the new account and a guarantee means customers are not left out of pocket if something goes wrong with the switch.
Figures released by the service show 196,964 switches took place between January and March 2022 - a 41 per cent increase on the same period in 2021.
As well as being attracted by incentives offered on new accounts, there has recently been a need for customers to switch away from Tesco and M&S, which closed their current account offerings.
Data provided voluntarily by banks also revealed Santander, Nationwide and Starling Bank had the highest net switching gains between October and December 2021, among those customers using Cass.
Consumer research carried out for Cass found nearly one in five (18%) people feel the cost of living crisis is pushing them to seek out product features such as additional overdraft facilities.
One in 10 (10%) believe that they need banking services that can help them better track their spending.
David Piper, head of service lines at Pay.UK, owner and operator of Cass said: "We have seen positive levels of engagement and satisfaction with the Current Account Switch Service at the start of this year, with a higher number of switches taking place compared to this quarter in 2021, when pandemic disruption was more front of mind for many.
"Of course, with cost of living rises continuing to put pressure on many households, it's more important than ever that people assess whether their existing current account is best suited to their needs.
"It may be that an alternative provider could offer something preferable and we would encourage those considering a switch to remember that the Current Account Switch Service is free to use, easy and guaranteed."
Four bank switching deals
Virgin Money - 20,000 Virgin Red points
Virgin Red is Virgin’s group-wide rewards club that turns everyday spending into points that unlock far more rewards, with hundreds of options to choose from.
If jet-setting isn’t your thing, you can use your 20,000 Virgin Points on a whole host of other rewards with Virgin Red.
For example, if you’re a Greggs enthusiast, you could turn your points into 100 sausage or vegan sausage rolls or 100 doughnuts or muffins.
Music lovers could snap up a Virgin Crosley record player or Sofar Sounds tickets.
Or, for those in search of some entertainment, the points can be used to pay for VUE cinema tickets, Virgin Wines, three-course meals and even an Astronaut Experience for two at Space Store.
How to get the offer
You must be over 18 to apply.
Apply online for an M Plus (or Club M) Account, then complete the next steps within 45 days of your account opening date:
- Download and log in to the Virgin Money mobile banking app
- Switch your existing current account to us using the Current Account Switch Service, including at least two Direct Debits
- Save £1,000 into your M Plus (or Club M) Saver and keep this in your account until they email your Virgin Red promo code to you - then you can withdraw it
Find out more at virginmoney.com.
First Direct - £150 free cash to switch or £20 just to open an account
How to get the £150 offer
Anyone over 18 just needs to open a 1st Account with First Direct then, within three months, complete a switch from another current account - it can't be from HSBC or First Direct - and pay in £1,000.
The £150 is then paid within 28 days.
You can either request the switch online when applying or later, but to get the cash bonus you must do the switch before the three month deadline.
How to get the £20 offer
All you have to do is open an online account and use the mobile or online banking within three months, the £20 is then paid within the first four months.
Who can apply?
If you're over 18, a UK resident, haven't been declared bankrupt or registered for an Individual Voluntary Agreement in the last six years (or be in the process of doing so), and have a phone number and email address.
Find out more on the First Direct website here.
Halifax - £125 plus monthly reward
How to get the offer
Anyone over 18 can switch their old bank account to a Halifax Reward current account or Ultimate Reward Current Account using the Current Account Switch Service to get the £125 bonus.
The switch, which takes up to seven working days, must be done by Monday, May 9 - the bonus is paid within three days of the switch completing.
Find out more at Halifax.co.uk.
Nationwide - up to £125 free cash
How to get the offer
Anyone over 18 just needs to complete a full switch online to a FlexDirect from another bank or building society within 30 days, which must include at least two Direct Debits.
If you're not yet a Nationwide member, you could get £100.
If you're already a member, you could get £125.
Once the switch is complete, the bonus is paid within 10 days.
Find out more at Nationwide.co.uk.
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