Martin Lewis has revealed how bank customers can get up to £160 free as the cost of living crisis continues to worsen.
With people across Scotland and the UK looking for ways to cut back on costs and save money, the financial expert shared a tip on how those considering switching banks can get free cash. Even those who don't want to move banks can save through cashback on bills or pay savings interest.
Writing in the latest MoneySavingExpert newsletter, Lewis said: "If you're unhappy with your bank, switching is quick and easy – and now's a great time to do it as five banks currently pay for your custom with up to £160 cash.
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"Yet you don't need to switch to get a good deal – other accounts give cashback on bills or pay savings interest. "
Lewis then explained that switching current accounts is "easy and takes just seven working days". The Current Account Switch Service (CASS) process involves opening a new account with the bank of your choosing and then requesting a switch through it.
Assuming both of the banks are signed up to CASS, which the majority are, your old account will be closed and your money, direct debits and standing orders will be moved over the new account. Regular incoming payments such as your salary will also be moved over.
According to Lewis, five banks currently offer switching bonuses. Four of these are cash incentives, while the other gives "points you can spend on a variety of experiences, flights and gifts".
Here is a rundown of each of the five bank accounts and what they offer as switching bonuses, or for more information visit the MoneySavingExpert website here.
Santander 123 Lite
New and existing customers who switch to the Santander 123 Lite can get £160 free cash, plus 1-3% cashback on most bills for a £2/month fee.
Who can get the bonus?
This must be your first switch bonus from Santander, and you can't switch from an existing Santander, Cahoot or Cater Allen account to another Santander account.
How to get bonus
Switch a non-Santander account to a new or existing Santander account (existing must be done in branch) and then within 60 days: have 2+ direct debits, pay in £1,000+ and log on to online or mobile banking. The bonus will be paid within 30 days of meeting all of the switch criteria.
More information is available here.
First Direct 1st Account
Switching to the First Direct 1st Account could get you £150 free, and £20 just for opening it.
Who can get the bonus?
You must be moving from an account that is not with First Direct (or HSBC if the account was created after January 2019) and you must also not have previously had a First Direct current account or opened up an HSBC current account since January 2019.
How to get bonus
First, you will need to open an account, then, within three months, switch over from an account with a different bank and deposit £1,000. The £150 will be transferred within 28 days.
More information is available here.
Halifax Reward
New and existing customers switching over to the Halifax Reward can get £150, as well as ongoing monthly rewards.
Who can get the bonus?
You must not have had a switching bonus from Halifax since April 2020 and you must be moving from an account with a different bank.
How to get bonus
To get the money, you must open up an account and start the process of switching before September 5, including at least two direct debits. The bonus will then be paid within 10 days after the switch is complete.
More information is available here.
Nationwide FlexDirect
New Nationwide customers switching to the FlexDirect account ca get £100 free, while existing customers can get £125.
Who can get the bonus?
You mustn't have received this switch bonus before and you need to be moving from an account with a different bank. If you've an existing account, it can't be in debt collection or frozen.
How to get the bonus
Switch to a new or existing account, including 2+ direct debits, with a switch completion date within 30 days. Once complete, the bonus is paid within 10 days.
More information is available here.
Virgin Money M Plus
Newcomers making a switch to the Virgin Money M Plus account can get 20,000 Virgin Red points. These can be spent on a range of experiences, gifts or flights.
Who can get the bonus?
You must not already have a Virgin Money current account and cannot have ever received a Virgin Money current account switch bonus. Additionally, you must be making the switch from a different bank.
How to get the bonus
Open an account online, then within 45 days: switch, pay in £1,000+ to its M Plus Saver account (1.71% AER variable), use the mobile app and have two direct debits. Once done, a code to redeem your Virgin points is sent within 14 days – you can then withdraw the £1,000+ if you wish.
More information is available here.
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