The financial expert and consumer champion has explained that bank account holders risk losing out on hundreds of pounds by not switching before Christmas
Martin Lewis has warned UK bank account holders could lose out on £200 before Christmas if they don’t act now.
The MoneySavingExpert.com founder has urged people to see if they can benefit from switching bank accounts. Nationwide FlexDirect is offering a free £200 to switch, plus a 8% regular saver on up to £200 a month, and a 0% overdraft on up to £1,500 for one year.
First Direct 1st Account is offering a free £175, 7% regular saver, fee-free overseas spending and a £250 0% overdraft. Lloyds’ Club Lloyds account is offering a free £175, plus a choice of rewards including 12 months of Disney+ and six cinema tickets. You could also opt for Coffee Club & Gourmet Society membership or a magazine subscription.
Martin answered a question from a viewer on This Morning, who asked: “Is it a good idea to switch bank accounts to claim the benefit?
“I’m looking to change my bank account to take advantage of the money offered to swap. I’ve done this before. Do the banks do everything for you or will I have to contact my direct debit companies. What will I need to do regarding my benefit payments?”
He replied: “When I’ve done polls on this in the past, 80% of people tell me switching is easy and hassle free. The system changed years ago.
“We now have this seven working day switch service, so the switch will take around 10 days on average from the time you apply assuming you’re accepted to the time that you get through.”
But you need to be careful if you’ve got upcoming credit commitments, such as planning a mortgage application. He said: “People in my office, in my team have made over a grand doing this, people have made over two grand doing it. It can have an impact on your credit score though, doing that, so it’s only for people who aren’t about to apply for anything for credit.
“It is free money but you can only be a new customer – because these are new customer switch deals – normally you then have to wait at least a couple of years before you’re counted as a new customer again so that’s where it gets difficult. It takes a little bit of work to do it serially – just to do it once is very easy.”
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