Martin Lewis’s MSE reveals a simple trick to get up to thousands of pounds in free cash
MARTIN Lewis has revealed a simple trick to get up to thousands of pounds in free cash in minutes.
Currently, four major banks are offering switching bonuses and this can be a great way to get some free money.
There has been little talk of bank switching bonuses in recent weeks, but now competition is increasing.
The latest MSE newsletter revealed that four major banks now have switching offers that can help you make some money in minutes.
Throughout the year, most banks tend to offer some kind of incentive to entice customers to switch to them.
However, there are usually certain criteria you must meet to receive the free money, so make sure you check all the details before signing up.
Some people are quite nervous about making the switch because they think they have to do all the work themselves, but that’s not true.
To qualify for the switching offer, in most cases you must complete the switch via the current account switching service (CASS).
The CASS is a free service that does most of the work for you. Below we explain all the details of the switching offer and how you can switch.
Santander
- Free £185 cash, plus 1% cashback on bills and 7% easy-access savings
This Santander offer is open to new and existing customers switching to a qualifying Santander UK current account.
The eligible accounts are a daily current account, a Santander Edge current account, a Santander Edge Up current account or a private V2 current account.
According to MSE, the Santander Edge account is the standout, a ‘top pick for accounts’.
The Santander Edge account costs £3 per month and requires you to pay £500 plus a month.
We made £1,000 last year alone, everyone should try it
Angus, MSE fan
Two ongoing sets of cashback are also available on this account, up to a maximum of £10 each.
Customers with this account can earn 1% cashback when spending on supermarket, fuel, train and bus travel.
Also 1% on water, council tax, energy, broadband, telephones and any paid TV bills paid from the account.
Households with average leaving accounts can typically earn £80 to £100 per year after the monthly account fee has been deducted.
With this account you also get access to a year’s worth of 7% variable savings up to € 4,000. If you save the maximum, this means that you will receive € 280 in interest.
If you have a lot of expenses, you can opt for the Santander Edge Up account for a chance to get more free cashback.
The cost of the account is slightly higher at £5 per month, but the cashback limit is higher at £15, up from £10.
To qualify for the £185 switching bonus, you must do the following:
- Complete the entire transfer within 60 days of requesting the transfer process.
- Pay at least €1,500 within 60 days. This does not have to be done all at once.
- Set up two active direct debits within 60 days. Direct debits to fund Santander, cahoot or Cater Allen savings do not count.
- Continue to maintain the eligible checking account on the day the payment is made.
Those eligible for the payment will be paid within 90 days of the switching process.
New customers can switch online via Santander’s website, by telephone or in a branch.
Existing Santander UK customers must visit a branch to take advantage of the offer.
NatWest and Royal Bank of Scotland
- Free €200 cash plus up to €36 cashback per year and access regular savings of 6.17%
NatWest and Royal Bank of Scotland (RBS) are offering customers who switch to one of their eligible accounts a £200 bonus.
People who switch to an Everyday, Reward or Premier account using the CASS can get the money if they meet certain criteria.
To qualify for the bonus you must:-
- Deposit €1,250 into your new checking account and log in to the mobile banking app within 60 days of switching.
- Have not received any previous switching incentive from NatWest Group since January 1, 2020.
When you do this, the money will be deposited into your account within seven days.
Customers can also earn up to £5 cashback when they use their card, but they will have to pay £2 per month.
This could mean a total of a potential €36 extra cashback over the year.
The Everyday checking account from both banks does not offer cashback, but is free of charge.
Meanwhile, there are three Premier accounts to choose from: Premier Select, Premier Reward and Premier Reward Black.
There are no monthly fees for the Premier Select account, but there are £2 and £31 monthly fees for the Premier Reward and Premier Reward Black accounts respectively.
Lloyds
- Free £175 cash plus benefits like Disney+ and you also get access to a regular savings account at 6.25%
As well as offering free cash, Club Lloyds will pay switchers £175 and either 12 months of Disney+, 6 cinema tickets, Gourmet Society and Coffee Club membership or a magazine subscription.
The Lloyds offer is only available to customers switching to a Club Lloyds, Club Lloyds Silver or Club Lloyds Platinum current account.
Customers must switch from a current account to Lloyds by Thursday, March 28 to avoid missing out.
To qualify for the free money you must do the following:
- Switch and pay €2,000 per month, or you will be charged €3 per month.
- The account you are transferring must have two direct debits.
- Make sure you have not received a transfer fee since April 2020.
Customers can also put £400 a month into a one-year fixed savings account at 6.25%, which if you max out will earn £161 in interest, according to MSE.
The bank switch must be done via the Payment Account Switching Service (CASS).
HSBC
- Free £100 plus £10 per month cashback for a year and access to regular 5% savings
People switching to an HSBC UK Advance or Premier account can get a £100 switching bonus when they switch to one of the eligible accounts.
There is also a chance to increase the amount you get to €220, which we explain below.
Customers can receive a lump sum of €100 just for switching bank accounts. You can then earn £10 per month cashback for 12 months, meaning you could potentially earn £220 in free cash.
Certain criteria must be met to get the full £220 and the switching process must be done through CASS.
To receive the first payment of £100 you must meet the following criteria:
- Apply for an HSBC Advance or Premier bank account on or after March 11 and successfully open the account
- Change an existing account from another bank using the CASS within 30 days of opening the account
- The switch must include at least two direct debits or standing orders
- Deposit at least £1,500 into the account within 60 days, divided into one or more payments
- Make at least 20 transactions with your HSBC debit card
- Register and log in to mobile banking
- Open an Online Bonus Saver account and deposit a minimum of £50
If new customers complete all the steps above, they will receive €100 in their checking account within 30 days.
To get their hands on another €120, customers will have to complete some of the above steps for another twelve months each.
Customers must continue to log into mobile banking, pay £1,500, complete a minimum of 20 transactions and keep their direct debit active each month, as well as making a monthly deposit of £50 into their online bonus savings account.
For each month they meet these criteria, €10 will be paid into their account up to a maximum of €120 or twelve monthly payments, before the 20th of the following month.
However, the extra money is dependent on meeting the criteria, so if you miss a month you will miss out on the £10 bonus payment for that month.
A Martin Lewis fan said he has made £1,000 in the past year thanks to switching from bank to bank.
Angus wrote: “Thanks to your guidance we have made £1,000 – £200 each from TSB, £125 each from Co-op and £175 each from Barclays in the last year alone. It’s so simple, everyone who is able should try.”
Keep in mind that while it can be profitable, switching to a bank can impact your credit score in the short term.
So if you want to make an important credit application soon, such as a mortgage, it may be worth waiting until after that.
How can 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 major banks and building societies have signed up; there is a full list on the CASS website.
With the switching service, switching banks would take seven working days.
You do not have to remember to transfer the direct debit when you move, as this will be done for you.
All you have to do is apply for the new account you want, and the new bank will notify your existing account that you are moving.
However, there are a few things you can do before you switch, including choosing your switch date and transferring any old bank statements to your new account.
For old statements, you must contact your existing bank.
When switching to another checking account, consider what other benefits come with membership of a specific bank or building society.
Some banks offer 0% overdraft fees up to a certain limit, and others may offer better rates on savings accounts.
And some banks offer free travel or cell phone insurance with their checking accounts, but these accounts may charge a monthly fee.