Martin Lewis shares tip that could bag you £200 free cash – deals are back!
Amber Middleton
Content writerThe Money Saving Expert's favourite hack has made a comeback – and it could help you land some free cash in your bank account
Martin Lewis has told fans how they could get £175 or £200 completely free by following his one simple tip.
The Money Saving Expert (MSE) CEO explained that 'now's a great time' to claim bonuses for changing bank accounts as two new 'switching' deals have been announced.
Claiming the money is a quick and easy process, all you need is a current account and 10 minutes – and you could have the cash in your bank within days.
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Earn £1,000s in bank switches
There's no time like the present to switch banks, according to Martin Lewis.
In an article posted to MSE earlier today, 16 February, he explained that 'now's a great time to do it as banks are currently offering up to £200 free cash for your custom'.
He's referring to switching to a new bank and claiming the switching bonus that is offered by some companies.
While this might sound like a hassle, it's actually very simple and only takes 10 minutes thanks to the Current Account Switch Service (CASS), which does all the hard work for you – including transferring all your regular payments and even redirecting your salary.
Martin then announced two brand new deals from banks which could get you £375 in total – and it involves very little work.
The news comes after Martin's previous warning that switching bonuses might be dying out, after banks completely pulled their joining bonuses with no switching payments on offer just a few weeks ago.
But now they're back and better than ever – so claim while you still can.
The latest bonuses
Multiple banks are currently offering the switching bonus:
Lloyds Club
Lloyds bank will give you £175 for changing banks.
Not only that but you'll also get to choose a reward from: 12 months' Disney+ (with ads), six cinema tickets, a Coffee Club & Gourmet Society membership, or a subscription to a magazine.
To claim the cash, you have to sign up to a Club Lloyds account online or in branch, switch from a different bank using the CASS – this is a service that most major banks are linked to which is designed to make switching banks an easy process.
To qualify you must close your old bank account and transfer two or more direct debits. This should be done by Thursday 28 March.
The £175 is paid out within 10 working days of the switch starting.
For this account, you should also know:
- You must pay in a minimum of £2,000 per month to your new account or you'll have to pay a £3 per month fee
- It comes with an overdraft with a 27.5% EAR variable (0% up to £50)
You can't claim this bonus if you've already received a cash switch from Lloyds or Halifax since April 2020.
NatWest and RBS
Both NatWest and Royal Bank of Scotland offer a switching bonus of £200 in free cash.
To claim the money you must sign up for either an RBS Reward or NatWest Reward account either online or in your local branch.
You then use the CASS to switch accounts from a previous bank.
Pay in £1,250 or more and use the app within 60 days and you'll receive your £200 after seven days.
- These accounts come with an overdraft with an interest rate of 39.49% EAR variable
You can't claim the bonus if you've switched cash from NatWest, RBS or Ulster since 1 January 2020.
On top of the cash, NatWest Reward and RBS Reward give £3 for every month you use their app and pay two £2+ direct debits (This works out as £5 per month but with a £2 monthly fee).
What is bank switching?
Switching bonuses are when a bank offers a reward for switching to them and closing your old bank account using the CASS.
Switching banks and gaining a bonus is a great way to earn some free cash if you're bank isn't giving you the perks you deserve, according to Martin.
Switching multiple times can also give you some serious cash in the bank.
One fan emailed Martin explaining just how much he'd made.
The email read: 'I just wanted to report that your tips on bank switching have helped me massively. In the last eight months, I have done six switches, netting a total of £1,100. It was easy!'
How do I switch?
You can switch bank accounts with the CASS which makes switching banks a 'nice and easy process', according to banks.
To switch, you will be asked to enter your details and the banks will do the rest.
Pick which day you would like the switch to take place and everything will be switched over within seven days.
During that week, your new bank will let your old bank know you are switching, set up all your regular payments to the new account and even alert your employer so your salary can be redirected.
And if you don't like the new account or want to switch back, all is not lost.
The CASS said: 'You can cancel your switch up to seven working days before your switch date. If you do want to cancel, speak to your new bank, who can guide you through this process.'
And if anything does go wrong, as part of the Current Account Switch Guarantee, your new bank or building society guarantees to refund any interest and charges you might incur.
We tried the switching hack
Netmums' Amber Middleton tried Martin's hack and made £325 from switching banks twice.
It was 'easy' and 'worth 10 minutes of time', she said.
Downsides to switching
Martin Lewis has previously warned against opening lots of new bank accounts and switching lots (especially in quick succession) as it can look a 'bit dodgy' and impact your credit score.
So be wary if you're in the process of buying a house or any other big purchase as you're often asked how long you've been with your bank.
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