MARTIN Lewis has warned there are just days left to claim a “free” bank bonus of £100 ahead of Christmas.
Writing in his weekly newsletter, the MoneySavingExpert founder explained how Lloyds Bank will offer you the cash incentive if you move account – but the deadline’s on Monday, November 9.
HSBC, meanwhile, gives you £125 within 30 days of signing up via the current acount switch service.
Four banks are currently offering the switching perks – but just Lloyds Bank and HSBS will pay the cash in time for December 25.
Martin said in the newsletter: “Banks are willing to bribe you to switch to them, and it’s all legal – so if you want some free cash, bag it.
“Four are currently paying, though only two pay out quickly enough for it to come before Christmas, and one of those is ending soon.
“To get the cash, you’ll need to use the banks’ official switching services.
“The switch itself will be done within seven working days, and all direct debits and standing orders will be moved for you, the old account closed and any payments to it auto-forwarded.”
Why should I switch bank accounts?
NOT sure what switching could do for you? Here’s what you need to know:
- Switching is easy. Under the switching service, swapping banks should take seven working days. That includes all your payments, direct debits and standing orders being moved too. Just open your new account and then ask your new provider to close your old account using the switch service.
- Use the Current Account Switch Service. In order to qualify for switch gifts, it’s likely you’ll need to use the Current Account Switch Service. This is free to do and does most of the work for you, including closing your old bank account.
- Make sure you are eligible. Most accounts have certain requirements, such as paying in a minimum amount of cash each month.
- Watch your overdraft. Check your new bank will offer you the same limit — and does not have higher costs for using it.
- Keep an eye on fees. Does your new bank charge a monthly fee for using it? Or is it more expensive than your current lender when it comes to using an unarranged overdraft?
Before you ditch and switch, you’ll need to check you meet the terms and conditions for the new account you want to move to or you may not get the cash reward.
You’ll also want to take make sure that you’re switching to the right account for you – it isn’t worth switching just for a cash incentive.
You can check out MoneySavingExpert’s guide on the best bank accounts for help.
To get £100 from Lloyds, you need to switch to its Club Lloyds account before November 9 – and you need to pay in a minimum of £1,500 a month.
Just keep in mind that you won’t be eligible for the offer if you’ve received an incentive for switching to a Lloyds account since April 2018.
Once you’ve switched, you’ll get the cash within ten days.
Alternatively, to get the £125 from HSBC within 30 days, you’ll need to apply for the bank’s Advance account or Premier account.
Advance comes with a hefty minimum monthly pay-in of £1,750, or a minimum of £10,500 every six months. You also need to switch two direct debits or standing orders to get it.
While for the Premier account, you’ll need to have a minimum salary of £75,000, plus a HSBC mortgage, investment, life insurance or a protection product.
HSBC hasn’t said if this deal has an end date, but it could pull the offer at any time.
What switching bonuses are other banks offering?
If you don’t need the money for Christmas, NatWest is also offering £125 to customers who move their main account by November 19 – but they promise to pay by February 12, 2021.
RBS also has a cash incentive of £100 for switching by December 30, although you may not get your money until January 29, 2021.
For NatWest, you must switch to its NatWest Select or Rewards account.
Customers must pay in at least £1,500 to the account and log into online or mobile banking through the NatWest mobile app before January 15, 2021.
New and existing customers can apply but you must be 18 or over and you can’t have received a cash switching offer from the Royal Bank of Scotland (RBS) Group, which NatWest is part of, since October 2017.
The Select account is free to use, but the Rewards account charges a monthly fee starting from £2.
For RBS, you get £100 when you switch to its RBS Rewards account. For this one, you need to pay in a minimum of £1,250 a month.
In other Martin Lewis news, the money guru has reminded bosses they can rehire staff to put them on furlough to help 500,000 workers who’ve lost jobs.
Martin has also revealed four ways to check if you’re owed cash and you could be owed thousands of pounds.
Plus, he recently helped a grandmother get back £82,000 in underpaid state pension – we explain how to check if you’re due a payout.