Martin Lewis shares ‘lucrative' way to boost bank balance by £1,000 - but there’s a ‘warning’
Mr Lewis offered his "only warning" to those considering switching accounts
GETTY
Martin Lewis has issued a “warning” to Britons considering switching bank accounts despite customers making “about a grand a year” from doing so.
Lloyds, NatWest, Santander and HSBC are the four high street banks currently offering new customers these deals.
Account switchers could make up to £200 in free money by changing banks, on top of cashback and other benefits.
Money saving expert Mr Lewis said this “free cash” will likely pay useful for households across the country amid the ongoing cost of living crisis.
However, the money journalist shared his “only warning” to any customers who want to take advantage of this deals.
Speaking on ITV’s This Morning, Mr Lewis said: “In terms of your credit file, having a decent long-term relationship with your bank can be beneficial for credit. Of course, applying for a bank you will have to pass a not too harsh credit score.
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
Customers could get up to £200 in free cash depending on which bank they change to
PA“If you were just about to make a mortgage application or do something important credit wise, I wouldn’t do this in the three to six months before that.
“But, if you’ve got nothing going on credit wise, switching bank accounts is a very lucrative way to make money.”
Despite this “warning”, Mr Lewis highlighted that account switch deals are the ideal opportunity for people to get “paid” easily.
He added: “If you love your bank, it gives you great service and you’re happy with it, there’s no need to change.
“But the whole point is right now there are four banks who are willing to pay you, bribe you legally if you switch.
“If you feel your bank is neither good nor bad, then you may as well get paid to switch. You may as well make money from it. There are some people who make about a grand a year from switching.”
According to the money saving expert, the process of changing bank accounts has been made easier thanks to the Current Account Switch Service.
He said: “To switch, you go through the bank’s seven day switching service, they move your balance over you, they move your direct debits over for you and any money paid the old accounts is forwarded to the new one.
“It is actually a pretty seamless process. You want some free cash? Three weeks ago, there was nothing. There was no accounts offering to switch. Now they are back.”
Depending on the bank or building society, customers will be paid within a week or a few months after switching.
By switching to NatWest, new customers are able to get £200 in free money and up to £36 annually in cashback.
LATEST DEVELOPMENTS:
HSBC is one of the banks offering free cash for switching accounts
PASantander is offering customers £185 to switch plus an ongoing one per cent cashback on most bills and some spending.
In comparison, Lloyds is giving switchers a free £175 and an additional reward to encourage them to change accounts.
These rewards include a year-long subscription to Disney+ (with ads), six cinema tickets, a Coffee Club and Gourmet Society membership, or a subscription to a magazine.
Finally, HSBC is providing account switchers £100 upfront with the opportunity get £10 a month cashback for a year.