Martin Lewis explains how to get £130 in free cash in time for Christmas by switching banks
MARTIN Lewis has explained how you can get £130 for free in time for Christmas by switching banks.
The MoneySavingExpert founder said seven banks are currently offering free cash and other incentives to encourage customers to swap their current account.
Santander 123 Lite switchers will get £130 for free and between 1% and 3% cashback on most bills for a £2 per month fee.
The minimum monthly pay in is £500, and you should get your freebies between late December and January, Martin said in his weekly newsletter.
Customers that move to a HSBC Advance account can get £110 and a £30 voucher for Uber Eats or The Dining Out.
You’ll have to pay in £1,750 a month, and HSBC will hand over the free cash in early December.
Nationwide is offering customers £100 to switch to its FlexDirect account – you’ll also get 2% interest on up to £1,500 fore the first year.
This one will pay out in mid November if you start the process today.
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Switching to First Direct’s 1st Account will get you a free £100, with no minimum monthly pay-in, and the free cash will be paid in early December.
If you swap to a Virgin Money M Plus* account you could get 12 bottles of wine or a £150 Virgin Experience Day gift card.
You’ll get your freebie by the end of November, and you don’t have to pay a minimum amount in each month.
NatWest and RBS are also offering £100 to switch banks, but you’ll have to wait until early February for your cash.
How can I switch bank accounts?
Before you switch banks, you should think about what you want from your current account based on your spending habits.
For example, if you’re often overdrawn you shouldn’t switch to an account with high overdraft fees.
You can then find one that best suits your needs using a comparison site such as Uswitch or Compare the Market.
Make sure you read the small print and that you’re clear on the terms and conditions before you switch.
You should also make sure can meet the eligibility rules for the new account you’ve chosen, such as being able to pay in a certain amount each month.
Once you’ve decided which account is best for you, switching should be a simple process.
You’ll just need some financial information, such as bank account number, ID and proof of address.
There’s a Current Account Switch Service which allows people to swap within seven days – most banks are signed up to the initiative.
It means your salary and direct debits will be automatically transferred to the new account.
Go through your existing direct debits to see if there’s any you don’t want carried over to your new account.
If you want your old statements, ask your current bank as they won’t be available after the switch.
You can then pick your preferred switch date – and you can use your old account up until this deadline.
To start your switch, ask your new bank or building society to move your old account using the Current Account Switch Service
If you have agreed an overdraft facility with your new provider, then you may transfer any existing overdraft to the new account.
Any payments sent to your old account by mistake will be forwarded on to you indefinitely, so you won’t lose out on cash.
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