Free cash bank offers for current account holders come with loopholes which could leave thousands unable to claim. Banks are imposingly increasingly stringent criteria on savers to get free cash amid the ongoing Cost of Living crisis.
Martyn James, a consumer rights expert, explained in an interview with the Sun newspaper: “It’s so easy to be blinded by big cash offers for switching or impressive interest rates. But the better the offer, the more catches there are.
“Fail to tick all the boxes, and thousands of people will miss out on the free cash.” Mr James went on, saying: “So make sure you check all of the T&Cs before you switch so you can find the best deal – and don’t get caught short.”
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And Alastair Douglas, chief executive of Totally Money, said the eligibility requirements for bank switching deals are becoming “increasingly complicated.” He added: “Loyalty doesn’t pay, but switching can and there’s some great offers on the market.
“Just make sure you do the research so you know exactly what’s needed to claim the full bonus.” One problem is not making minimum payments, Mr James said. Lloyds Bank says its offer of £175 to switch to a Club Lloyds account comes with a caveat.
Customers must pay in a hefty sum of at least £2,000 a month, Lloyds said. Failure to pay this much in could mean you forfeit the cash bonus, the high street bank adds. “Have a look at those comparison tables, because some firms charge fees or apply penalties if you don’t meet the minimum requirements,” Mr James said.
“You may even get your account downgraded.” Andrew Hagger, founder of MoneyComms, explained: “Some banks won’t pay out if you’ve switched previously. And in some cases, this can go back as far as the last five or six years.”
