Martin Lewis has told customers with accounts at five major UK banks that they can earn a free cash bonus by switching – and they could get the money in time for Christmas
Money-saving guru Martin Lewis has dished out a hot tip for banking customers to bag an “easy” £200 in time for the festive season. The financial whizz, who graces screens on BBC and ITV, highlighted that Santander, Lloyds, Nationwide, and NatWest are doling out free cash to those who switch banks.
On his ITV money show, Lewis advised: “If you love your bank… then stick with it. I wouldn’t tell you to leave. If not, then so many banks are willing to pay you.” He added: “It’s a good way to make free cash and get it in time for Christmas.”
He cautioned, however, about the potential impact on your credit score: “If you do one switch, it’s an application on your credit file which has a very minor, short-term negative effect. Lots of those in a short space of time can be an impact. Banks also like to see evidence of longevity, so that’s also slightly negative. So I wouldn’t switch my bank account if I had a mortgage application during the next two months.”
Martin further explained the long-term impact: “Longer than that, I wouldn’t care that much. It’s only very minor. It doesn’t really have a hit. Switching very regularly to make money can have a bigger impact. Do you have a use for your credit working? Do you have a debt application you want to make, or a mortgage application you want to make? No, well, in which case it’ll have an effect, but why do you care?”
Lloyds Bank is offering a £200 incentive if you switch to a Club Lloyds account by December 10. NatWest is also enticing customers with a £180 reward for those who move to its NatWest Reward account, provided they deposit £1,250 into their new account and log into the mobile app within 60 days of switching accounts. The £180 will then be paid within seven days.
First Direct is offering £175 for switching to their 1st Account. Nationwide is also giving away £175 to those who switch their current account to its FlexDirect account, but to qualify, you must transfer at least two active direct debits, deposit a minimum of £1,000 and make one debit card payment within 31 days.
Santander is offering £150, but note that the money won’t arrive before Christmas. To get this cash, you need to switch across two direct debits and pay in at least £1,500. If you switch to the Santander Edge account, there is a £3 monthly fee – but you can earn up to £20 a month cashback.
