MoneySavingExpert founder Martin Lewis has revealed how bank customers can boost their earnings by hundreds in 12 months.
The consumer champion issued the advice in his latest newsletter, and it could be worth over £500 a year.
PAMartin Lewis has revealed how switching banks can see you earn hundreds in a year[/caption]
A number of high street banks offer cash bonuses if you switch your current accounts across to them.
The process isn’t too complicated either – you just have to switch through the Current Account Switching Service (CASS).
More than 40 banks and building societies are signed up to the service which handles everything for you.
You just have to sign up to the new account, your new bank will switch your payments and transfer your balance, and your old bank will take care of closing the old account.
Some of the banks and building societies offering switching bonuses have competitive savings accounts too which could see you earn hundreds in interest in your first year.
All in all, it could see you earn over £500 in your first 12 months.
Here are some of the banks offering switching bonuses and competitive savings accounts.
HSBC
HSBC is offering new current account customers £200 if they switch across.
But you have to start the switch within 30 days (including two direct debits or standing orders) and pay in £1,500 in the first 60 days.
Once this is done you should receive the £200 within 20 days.
The first £25 of any arranged overdraft is interest free, plus the bank is offering thousands of customers the chance to extend that to £500 for 12 months.
New customers with the bank can also put up to £10,000 in a 3% easy-access account.
So if you had £10,000 in this account after your first year you could expect to earn £300 in interest.
But bear in mind this interest rate could change and is reduced if you withdraw any money in that 12-month period.
If you signed up to HSBC’s regular saver accounts too, at 5% over one-year with a minimum monthly limit of £250, you could make £81 in your first 12 months.
All in all, that could mean you earning £581 in your first year with HSBC.
First Direct
First Direct is offering new customers £175 if they make the switch, plus £20 just for opening the account.
To get the £20 you just have to open the account and use mobile or online banking within three months. The £20 is then paid within four months.
To get the £175, you have to open a First Direct 1st Account and switch another account into it within three months.
Plus you have to pay in a minimum £1,000.
The £175 is then paid into the account within 28 days.
You can add up to £300 a month into its 7% one-year regular savings account too.
So if you had the maximum £3,600 in there at the end of the 12 months you could expect to earn around £135 in interest.
All in all, that could mean you earning £330 in your first year with First Direct.
Nearly 90% of customers recently polled by MoneySavingExpert.com rated First Direct’s service as “great” as well.
Halifax
Halifax is offering £175 to customers who switch to its Reward account.
You just have to open it and start the switch by December 19 – so you’ll have to be quick.
The bonus is paid within three days of the switch.
Plus, once you’ve switched you can add up to £250 a month at 4.5% interest into First Direct’s one-year regular saver account.
If you added the maximum amount each month you’d end up with around £73 in interest by the end of your first year.
That means you could earn £248 in your first 12 months with Halifax.
In other news, we revealed the full list of bank branches closing in December including Barclays, Halifax and Lloyds.
Plus, Martin Lewis has warned of a “huge payment shock” for millions of homeowners.