Martin Lewis shares 'perfect' way for savers to get £400 free cash before Christmas - 'well worth doing!'

Speaking on his BBC Podcast, Mr Lewis explained that seven major banks are currently offering free cash to new customers who switch account, with most paying around £200

He said: "If people are looking to make a little bit of extra cash right now, bizarrely, they want to look at the banks, because currently there are seven banks willing to pay people free money in order to switch, a legal bribe if you like, and the biggest payer pays £400 for your custom."

The banks taking part include Barclays, Co-op, First Direct, Lloyds, Nationwide, NatWest and TSB.

Now is considered the ideal time to switch banks, with multiple cash offers available just as households begin planning for Christmas expenses.

He said: "The other thing that makes this the perfect sweet spot for bank account switching at the moment is of course Christmas is coming where people need the money.

"So it's well worth doing. So what I would say to people is, unless you're so deliriously happy with your bank because it gives you a nice massage every single time you deal with it, have a look at whether you can be paid or not."

Alastair Douglas, TotallyMoney CEO, echoed this sentiment, emphasising that switching needn't be complicated. The Current Account Switch Service facilitates automatic transfers of balances, Direct Debits and regular income between institutions.

Mr Douglas advised: "Loyalty doesn't pay, but moving banks can."

He added: "To be eligible for most switching offers, you’ll need to transfer at least two active Direct Debits, deposit cash in the first month or so, and use the app.

"Some banks will ask you to jump through a few more hoops, so read the small print and make a check list, so you don’t get caught out."

The service has successfully processed over 11 million account switches across more than 50 participating banks and building societies.

Most switching incentives require customers to transfer at least two active Direct Debits, make an initial deposit within the first month, and utilise the bank's mobile application.

Barclays leads with a £200 switching bonus, supplemented by an Apple TV+ subscription valued at £9.99 monthly and cashback rewards on purchases. The Blue Rewards account carries a £5 monthly charge. New customers can claim up to £400 from Barclays by opening a Premier Current Account through the Barclays app and completing a full switch, which must include at least two direct debits and a £4,000 deposit within 30 days.

However, eligibility rules apply - they’ll need to earn at least £75,000 a year or hold £100,000 in savings or investments with Barclays. Eligible investments include ISAs, SIPPs or General Investment Accounts. The offer runs until November 27, 2025, so there’s still time to apply.

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Existing Barclays customers aren’t left out either. If they already have a Barclaycard, mortgage or savings account, they can still qualify for the £200 or £400 bonus by reinstalling the Barclays app and registering as a new customer for either a Barclays Bank Account with Blue Rewards or a Premier Current Account.

Once that’s done, their new account should appear in the app within 48 hours, and if not, Barclays can help resolve it.

Co-operative Bank provides £175 in total, comprising an initial £100 payment plus £25 monthly for three months. Customers must complete ten card transactions to qualify, with payment arriving within seven days of meeting requirements.

First Direct matches the £175 incentive whilst including a £250 interest-free overdraft facility and access to a savings account offering 7% AER. Approved applicants receive immediate account access and a virtual card.

Mr Douglas noted that overdraft facilities require eligibility checks as they constitute regulated borrowing products.

Lloyds presents a £200 switching incentive, though their Club Lloyds and Premier Accounts require £5 and £15 monthly fees respectively. Previous recipients of switching bonuses from Lloyds, Bank of Scotland or Halifax within five years are excluded.

Nationwide provides £175 paid within ten days of fulfilling requirements. The building society operates 600 branches nationwide and offers three account options, including the fee-free Flex Direct with five per cent interest on savings up to £1,500.

NatWest's Reward account delivers £175 plus potential monthly cashback of £5, offset by a £2 monthly charge.

TSB rounds out the offerings with £180 total - £150 upfront plus £10 monthly cashback for three months.

Their Spend & Save Plus account costs £3 monthly but includes a £100 interest-free overdraft and overseas spending without fees.