MONEY SAVING expert Martin Lewis has shared how to get a free £175 by a simple bank switch.
Customers can earn the bonus by switching a current account to UK bank First Direct’s 1 Account.
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The switch also includes more perks, including an interest-free overdraft on the first £250 and a savings account that pays 7% interest on up to £300 per month.
Explaining why this was so good, Lewis reminded readers that they would usually be charged 40% on overdrafts, risking a potential cycle of debt.
He noted that the £175 bonus could further help those in debt, by bringing their overdraft closer to the interest-free £250.
The financial journalist, who spread the news on his website Moneysavingexpert.com, was quick to also remind readers of the wider benefits of a First Direct current account.
One of these is the lack of foreign exchange fees when spending abroad, as well as fee-free ATM withdrawal (though the ATM itself may charge).
He praised First Direct as “top or near-top of every bank customer service poll we’ve ever run”, noting that it scored 91% “great” in a July poll.
For the switch, First Direct’s seven-working-day switch service sorts everything out, including transferring direct debits and standing payments and closing the customer’s old account.
Switchers will need at least two direct debits or standing orders within 30 days of opening the account to qualify for the cash.
They will also need to add at least £1000 to the account, register and log on to internet banking, and use the debit card at least five times within 30 days of opening the account.
Customers who follow these steps can expect the bonus to be paid to them on the 20th of the following month.
On the same web page for September money saving hacks, Lewis also shared discounts on phone bills and Eurostar tickets, as well as tips on how to get cheap medical insurance.
Which other banks are offering switching bonuses?
Two other banks are currently offering switching bonuses, although not everyone in the UK can access them.
Danske Bank is offering £200 to switchers moving to one of three accounts including its Danske Reward and Danske Choice accounts.
The Reward card comes with a £2 monthly fee whereas the Choice card is fee-free.
To get the £200 bonus, you have to switch in using the CASS, then pay £1,000 or more in the first 60 days.
The money is then paid within 10 working days.
But, crucially, you only qualify for the switching incentive if you live in Northern Ireland.
You also can’t have held a Danske Bank current account before or have received a switching offer from the bank since January 1, 2023.
You can also switch to a Virgin Money M Plus account which pays out 12.68% AER interest on up to £1,000 a year.
The account itself offers 2% gross interest but switchers get an extra 10% added on top, worth just over £125 if you keep the £1,000 in the account for a full year.
You can get the bonus by opening an M, M Plus or Club M account by May 31, and switching in from a different bank, including two direct debits, by June 26.
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The bonus will then be paid between July 1, 2024, and June 30, 2025.
Switching deals are constantly coming on and off the market, so keep an eye out for new offers if you’re thinking about changing banks.
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.
