Yahoo Finance Get paid hundreds – by simply switching current accounts
At any one time, you’ll usually be able to find at least a couple of current account switching perks on offer, giving you the chance to bag some free cash with just a few clicks.
Banks and building societies run this type of promotion from time to time in a bid to entice new customers in.
Right now, there are some great deals up for grabs, just for moving your current account from your existing provider to a new one.
Andrew Hagger, personal finance expert from Moneycomms, said: “The switching incentives are more attractive than ever. The ‘£100-deals’ will no longer cut it, as most providers are offering almost double that amount these days.”
Equally, while a one-off bonus may sound pretty appealing, if you’re prepared to put in the legwork, there’s potentially some serious money to be made by repeatedly switching accounts – as long as you carefully navigate the banks’ various terms and conditions.
The biggest switching incentives
NatWest: £200
NatWest will pay £200 to new and existing customers who switch to one of its Select, Reward and Premier current accounts while the offer is active.
You must deposit £1,250 into the account (this balance must remain for at least 24 hours), and log in to the mobile banking app within 60 days.
The bonus will be paid within seven days of these conditions being met.
The NatWest Reward account costs £2 a month, and offers up to £5 a month in rewards when you set up at least two direct debits and log in to the mobile app. You can earn also cashback and gift cards from retail partners.
NatWest Premier accounts come with extra perks, but can only be opened by those who either have £100,000 sole income or £120,000 joint income, £100,000 savings or investments held with NatWest, or £500,000 mortgage borrowing with NatWest.
Santander: £185
New and existing customers can get £185 for switching to one of the following Santander current accounts: Santander Edge, Santander Edge Up, Santander Everyday or Santander Private (v2). Some accounts will have their own eligibility criteria.
To get the bonus, you must switch an account held elsewhere to either a new current account, or an eligible account you already held before the bonus was on offer. Within 60 days of requesting the switch, you must set up at least two active direct debits, and pay in at least £1,500.
After the 60 days has passed, Santander will check whether you’re eligible for the bonus. If you are, it will be paid into your account within the following 30 days.
Neither you, or anyone else named on the account can have previously received a switching bonus on any Santander account.
Lloyds Bank: £175
Lloyds Bank is offering £175 for those who switch to a new Club Lloyds current account by March 28. You must move at least two direct debits from your old account.
A Club Lloyds account costs £3 a month, but the fee is waived in any months when £2,000 or more is paid into the account. It comes with a range of features, such as lifestyle benefits that include a 12-month Disney+ subscription, a magazine subscription or Vue or Odeon cinema tickets, and access to exclusive cashback offers with selected retailers.
Club Lloyds Silver and Platinum accounts also qualify for the switching bonus, but come with different monthly fees and features.
The offer can be claimed by existed Lloyds customers who switch to a qualifying account, but you can’t get the bonus if you’ve received a switching bonus from Lloyds Bank or Halifax since April 2020.
The bonus should be paid within three days of making the switch.
HSBC: £100, plus up to £120 cashback
New customers can get £100 for switching to HSBC, and get the chance to bump up their bonus to £220 with the chance to earn £10 cashback per month for a year.
You’ll need to switch to either an HSBC Advance or Premier account using the CASS. To qualify for the Premier Account you must either have an income of at least £75,000 and an HSBC mortgage, life insurance or a protection policy; savings or investments of at least £50,000 held with HSBC; be an HSBC Premier customer in another country.
To get the £100 bonus, at least two direct debits or standing orders must be moved within the first 30 days, and within 60 days you need to pay in at least £1,500, make at least 20 debit card payments, log on to the mobile app and deposit at least £50 into its Online Bonus Saver account (which pays 2pc standard rate, 4pc “bonus” rate paid any month you don’t make a withdrawal).
This payment and savings criteria also applies in order to earn the monthly cashback.
Note that you also can’t have held an account with HSBC or First Direct since January 1 2019.
The £100 will be paid in within 30 days of the criteria being completed; after this, you have one calendar month to complete the qualifying criteria for the first cashback payment. The cashback offer is available for a total of 12 months, and you’ll receive cashback by the 20th of the following month for each month you qualify.
Always switch via the CASS
To qualify for the free cash handouts, you have to go down the “official” transfer route, and this means using the Current Account Switch Service (CASS).
This is a free scheme which aims to take the hassle out of switching, with the process completed in seven working days. While most banks are signed up, not all of them are, so you’ll need to check availability when you’re looking to move.
All payments going out, such as direct debits, and those coming in, such as your salary, will be moved for you. Any payments accidentally made or requested from the old account after you’ve moved will be automatically redirected.
There is also a guarantee that acts as a safety net if anything goes wrong, meaning you will receive a refund of interest and charges on both your old and new accounts.
Mr Hagger said: “The CASS has given many consumers the confidence to ditch their existing bank.”
Check qualifying terms
As we’ve noted earlier, there can sometimes be several hoops to jump through in order to qualify for a switching bonus; if this is a big part of why you want to move accounts then it’s worth ensuring you meet all the criteria laid down by your chosen provider.
Mr Hagger added: “This might mean ensuring you credit the account with a certain amount each month, or checking you have the right number of direct debits or standing orders set up on the account.”
If you’re a regular current account switcher, you’ll likely need to avoid going back to the same provider – or group of providers – for a few years before you’re able to get another switching bonus.
Kate Brain, banking expert at ratings firm Defaqto, said: “Be mindful that most providers do stipulate that if you have held an account with them within the last year or two, you won’t qualify for the cashback.”
First Direct will only pay out a bonus once, so no returning customers can benefit.
The key is to read the full terms before you agree to switch.
How to become a serial switcher
If you’re savvy with your money, and have the time to dedicate to regularly scouring switching offers, there’s decent cash to be earned by switching more than once.
Mr Hagger said: “If you’re comfortable opening and closing bank accounts, and happy with the idea of getting new debit cards, account numbers, sort codes, PINs, new online banking set-ups and passwords, then there’s money to be made.”
This trick involves cashing in on all of the switching deals laid out above.
Mr Hagger said: “If you’re smart enough and qualify for all four accounts – from Nationwide, First Direct and Lloyds Bank – you could pocket £450 in the course of three to four months.”
Better still, further deals may appear in the weeks to come. By the time you get to the end of the process of switching to these providers, you could find there are fresh offers available from the other banks, meaning you could potentially earn even more.
Before you get excited, don’t bank on having that cash to spend right away.
Ms Brain added: “While the CASS means you can switch accounts within seven days, be aware that some of the conditions mean it does take longer for the money to be paid out. In some cases, this could be up to 60 days.”
One tip she recommends for “serial switchers” is to think about opening a separate account from your main current account. So, keeping some direct debits and spending in one account that you hold more consistently, while transferring others around. This can be a help if you are concerned about transferring all your outgoings.
How exactly do you make a switch?
Once you’ve found a new account you’d like to move to, compare it against other offerings, just to be sure you’re making the right choice.
Then, check that you’re eligible for the account, and the switching offer.
If you’re happy that you qualify, all you need to do is open the new account and let your new provider know you’re switching over. It should only take a matter of minutes to fill out the form.
Your new bank will then do all the legwork for you. This includes transferring all your direct debits and standing orders being transferred to your new account.
It’s then down to you to select the date you want your account switched, and down to your former bank to take care of closing your old account.
Top tips for switching bank accounts
While the CASS aims to make the switching process as seamless as possible, it can still be a little disruptive – but there are things you can do to make sure you don’t lose track of your payments.
Download your bank statements
Before your old account gets shut down, download your bank statements from the last few months. That way, you will have them if you need them – they might be required if you need to remortgage or apply for another kind of borrowing, for example.
Assess your direct debits
Seize the opportunity to make a note of all your direct debits, standing orders and subscriptions, so you know you’ve moved everything over. Also use this as a chance to look for better deals, and weed out any payments for services you no longer use.
Hold off setting up new payments
In the few days while the switching process is taking place, don’t set up any regular payments from your old account, as they may not be moved over.
Check your overdraft eligibility
If you have an overdraft with your existing provider, you will need to speak to your new bank first to see if this facility can be agreed on your new account. Borrowing rules can vary between providers, so don’t assume you’ll be able to get the same amount of overdraft.
Consider your credit score
While switching accounts shouldn’t affect your credit score, tread carefully if you are thinking of taking out a mortgage or loan in the near future. Mortgage providers and other lenders don’t like to see too many accounts opened in a short space of time, as this could suggest money problems. With this in mind, avoid switching providers too frequently ahead of applying for any type of borrowing.
Seen an offer you like? Don’t delay
If you decide one of the accounts offering a cash incentive is right for you, you need to act fast, as these latest switching deals may not hang around for long.
Rachel Springall, from Moneyfactscompare.co.uk, said: “Switching bonuses come and go. There is no guarantee such lucrative perks will remain on offer forever.”
That being said, it’s also important to research any deals carefully before making any decision.
Ms Springall added: “As the cost of living continues to rise, consumers may be tempted to grab a free cash perk, but it is imperative you weigh up the overall package on offer before committing to any new account.”
It’s not all about the money; your current account is likely to be the financial service you use most often, so you also need to be sure the account suits you, and the way you manage your finances. If, for instance, you’re switching to an online-only bank, when you value visiting a branch, then the switch may not be the best decision.
