Let’s face it, most people wouldn’t say no to some extra cash, especially if there’s no extra real work involved to get it.
Well, listen up, as there is a way to quickly make £100 or more and it’s actually pretty simple: All you have to do is switch banks.
Cash incentives for switching
Lots of banks are now offering welcome bonuses for customers switching to certain accounts they have on offer. For example, if you move to HSBC Advance before July 23rd, you can get £150 cashback, as well as £50 on your joining anniversary (of course, you will have to move direct debits over and pay in at least £1,750 a month to qualify). Meanwhile, the Co-operative Bank is offering a £110 switching bonus for their current account, as long as you move over at least 4 direct debits (beware that you can’t earn interest on this account). Halifax is offering £125 for moving to one of its accounts by July 31st and TSB is offering a £130 switching bonus if you move to the TSB Classic Plus via MoneySuperMarket before July 14th.
These are just a few of the incentives available, so it pays to look around and see if there is an account that works for you.
Ok, what’s the catch?
While not necessarily ‘a catch’, it’s important to read the small print on all of the accounts. Some offer bonuses that only pay out if you fit certain criteria, while other’s – like the HSBC Advance mentioned above – require a certain amount of money be paid in each month.
Opening up new accounts can also have a negative impact on your credit score, so you must make sure you a) don’t constantly switch accounts to access the welcome bonus and b) are confident it’s the right account for you. Like any financial decision, you need to do your research and way up the pros and cons before making a move.
Why would banks pay you money?
Banks have targets they have to hit, so when they need more customers on certain accounts, they start to offer deals; it’s really that simple.
Is it difficult to switch?
Since September 2013, switching your account has become much easier, thanks to the introduction of the 7 day switching period. This basically means that all you have to do is open a new account, then use that bank’s switching service to close your old account and move stuff across.
However, you need to make sure both your existing and new bank are signed up to the scheme. You also need to make sure you actually remember to request the switching service. If you’ve checked these two things and opened up a new account, then you should be good to go. From here, moving all your payments over, such as salary and bills, will take 7 working days.
Top tip: Many banks will require a credit check before they allow you to open up a new account, so check your credit score and report first.
Are cash incentives all you can get from switching accounts?
Some banks also offer other deals to encourage people to switch over, such as cheap overdraft rates or savings interest. If you regularly go overdrawn or you often have the majority of your money in a current account, you might want to consider these incentives rather than offers of welcome bonuses.
Is switching worth it?
While the benefits of switching current accounts aren’t as talked about as much as switching energy providers, for example, it’s always good to make sure you have the right financial products for your individual situation. Incentives for switching may just be the icing on the cake.