WHO doesn’t want a bit of free money?
Savvy switcher and writer Ariane Sherine, 43, who lives in East London explains how to cash in on free bank switching.
I was desperate to add to my income, having quit my job last year to become a freelance writer, and this seemed like a quick and easy way of making money.
They are known as ‘bank bribes’ where a bank pays a customer to switch to them.
Firstly, in late December I signed up for a Nationwide account for £200 by switching from Barclays and an account I hardly use.
In order to qualify for the free cash, banks will ask customers to pay in a minimum amount each month and set up direct debits.
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There were no direct debits going out of my Barclays account, which was a problem, as Nationwide insisted there were two ‘active’ direct debits on the account.
Two quick calls to my broadband provider and home alarm provider fixed this.
It only took seven days to get paid.
Next, I switched my new Nationwide account to TSB in January for £185.
Bank switching offers available right now
THERE’S only one switching offer available right now – it’s £175 from First Direct, but you’ll have to be quick as it ends on Monday, April 22.
To get the cash, you can’t ever have held a First Direct account before, and you can’t have opened an HSBC account since January 1, 2018.
You’ll need to switch at least two direct debits or standing orders, then deposit £1,000 and log onto digital banking within 30 days to get the cash.
On top of the free cash, customers will get a £250 interest-free overdraft and access to a regular saver account paying 7% in interest.
New bank switches appear almost every month – Santander, HSBC, NatWest, Royal Bank of Scotland and Lloyds Bank also had offers as recently as last month, although they’ve since ended.
Keep your eyes peeled for any new offers as they come and go.
Consumer and comparison sites such as MoneySavingExpert, Money.co.uk and Uswitch all typically list the offers online.
TSB’s demands for the cash were a bit more complex.
They also asked for two active direct debits and in return you would get £125, but if you also made 20 direct debit transactions a month over the next six months then you would get an extra £60.
The £125 was paid within seven days.
That means I’m locked in with TSB until June, so when I spotted another switching offer I had to use a different account.
Royal Bank of Scotland was offering £200, so I switched my Co-op bank account.
RBS had the most difficult hoop to jump through. I had to deposit £1,250 into the account for a minimum of 24 hours.
It was tricky to scramble the cash together and I had to time it to make sure no direct debits would leave any of my other accounts during the 24 hours.
Once the time was up, I transferred the money out.
The £200 was in the bank within seven days.
The process itself is easy as banks use a switching service, which means any direct debits are automatically transferred.
The admin does take time – but it’s worth it for the free cash.
How do I switch bank accounts?
SWITCHING bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS).
Dozens of high street banks and building societies are signed up – there’s a full list on CASS’ website.
Under the switching service, swapping banks should take seven working days.
You don’t have to remember to move direct debits across when moving, as this is done for you.
All you have to do is apply for the new account you want, and the new bank will tell your existing one you’re moving.
There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account.
You should get in touch with your existing bank for any old statements.
When switching current accounts, consider what other perks might come with joining a specific bank or building society.
Some banks offer 0% overdrafts up to a certain limit, and others might offer better rates on savings accounts.
And some banks offer free travel or mobile phone insurance with their current accounts – but these accounts might come with a monthly fee.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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