Alleviate the wrath of ‘Awful April’ by making one simple switch that could boost your bank balance by up to £186 in one year. However – not everyone will be eligible for the free-cash prize
Cash-strapped Brits can give their bank a hefty boost worth up to £186 with one simple move. Millions of households will now be feeling the full wrath of ‘Awful April’ following a series of rising bills, including council tax, the TV Licence fee, road tax, and energy prices.
In fact, research suggests that the average household will be forking out an extra £32.17 each month in bills alone – which works out at more than £360 each year. As previously reported, Brits are being urged to get more savvy with their money – and make sure they stash their savings away in accounts with the highest interest rate possible.
However, if you’re struggling to build funds to save in the first place, it might be worth switching banks. This is because many high-street lenders offer generous cash incentives for new customers – as well as other perks like 0 per cent overdrafts and cashback deals – if they meet certain criteria.
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According to Martin Lewis’ Money Saving Expert website, there are currently only two banks offering ‘bribes’ for newbies. To qualify for these bonuses, you will have to use the official Current Account Switch Service (CASS) which will automatically transfer your Direct Debits and standard orders over to your new account, while closing your old account for you.
It’s worth noting that switching banks can have a ‘very minor, short-term negative effect’ on your credit score – and switching banks lots of times in a short space may increase the impact. Therefore, if you’re currently in the process of, for example, applying for a mortgage – it might be worth holding off on switching banks. But, for those willing to take the small hit, earning the free bonus is a no-brainer.
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“You can switch if you’re in your overdraft, but how it works will depend on the bank you’re looking to switch to,” explains MSE. “Your new bank will need to agree to match the amount you’re overdrawn by. If it does, they’ll send the amount you owe to your old bank, so you’ll now owe your new bank instead.”
If your new account does not agree to an overdraft, you’ll still need to repay the existing debt. In this scenario, it’s likely your old bank will set up a repayment plan for you to clear the overdraft.
Which banks are offering free cash for newbies?
First Direct is currently offering newbies a £175 bonus, along with a £250 interest-free overdraft (subject to status), and access to their seven per cent AER/gross Regular Saver account. The bank also doesn’t charge debit card fees when spending abroad. To claim the bonus, you will need to switch to First Direct using the CASS and have at least two Direct Dibets or standing orders. In the first 45 days of opening the account, you’ll also need to deposit £1,000, make five debit card payments and log on to digital banking.
The bonus isn’t available for anyone who has previously held a First Direct ‘product’. “Sorry, we also can’t offer this to people who have opened an HSBC current account on or after January 1, 2018,” the bank added. “Offer can be withdrawn at any time. Subject to status. UK residents only.”
NatWest is also luring new customers in with a £150 bonus. “The NatWest Reward account comes with a £2/month fee, but you get £5/month cashback when you pay in £1,250, pay out 2+ Direct Debits of £2+ and log into its mobile banking app each month,” explains MSE. “So the net gain is £3/month or £36/year.”
Again, you will not be eligible for the bonus if you’ve ever received a switch bonus from NatWest, RBS or Ulster Bank before. NatWest states its offer can be ‘withdrawn or amended at any time due to limited availability’.
*This article does not constitute financial advice. Always read the full terms and conditions before switching bank accounts.
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