Bank bonanza as another major name launches £185 free cash offer
A BANK switching bonanza is well and truly here as another major name launches a £185 free cash offer.
Santander is the latest bank to join four others by offering up free cash to entice newbies to switch.
The move means that "bank switching is back in full swing, and the deal from Santander offers a great chance to bag some free cash and help ease the ongoing cost of living crisis," according to Andrew Hagger, founder of Moneycommms.
"It's quick and easy and a great way to give your bank balance a much-needed boost," he added.
From today, customers can earn £185 when switching to an eligible Santander UK current account.
The deal is open to both new and existing Santander UK customers.
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Customers using the Current Account Switching Service (CASS) to switch to either an Everyday Current Account, Santander Edge Current Account, Santander Edge Up Current Account, or Private Current Account v2 will earn £185.
To qualify for the £185 payment, customers must:
- Complete the full switch within 60 days of requesting the switch process (including the closure of the old account).
- Pay in at least £1,500 within 60 days of requesting the switch process (this does not need to be in one payment).
- Set up two active direct debits within 60 days.
- Continue to hold the qualifying current account on the day the payment is made.
Those eligible for the payment will get paid within 90 days of the switch process.
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New customers can switch online through the Santander website, over phone, or in branch.
Existing Santander UK customers must visit a branch to take advantage of this offer.
Andrea Melville, director of current accounts, savings and business banking at Santander said: "With finances often stretched these days, we know customers want a current account that not only suits their everyday banking needs, but that also delivers additional ongoing value.
"Our new switching offer not only provides a quick boost to customers' finances but forms part of the wider value package we provide through our Edge accounts."
How do I switch bank accounts?
SWITCHING bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS).
Dozens of high street banks and building societies are signed up - there's a full list on CASS' website.
Under the switching service, swapping banks should take seven working days.
You don't have to remember to move direct debits across when moving, as this is done for you.
All you have to do is apply for the new account you want, and the new bank will tell your existing one you're moving.
There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account.
You should get in touch with your existing bank for any old statements.
When switching current accounts, consider what other perks might come with joining a specific bank or building society.
Some banks offer 0% overdrafts up to a certain limit, and others might offer better rates on savings accounts.
And some banks offer free travel or mobile phone insurance with their current accounts - but these accounts might come with a monthly fee.
However, another four banks are offering free cash to newbies, and we've explained what you need to do to qualify for each offer below.
What other banks offer free cash?
HSBC
- Up to £220 free cash, which includes £10 a month cashback for a year. Plus, you'll get access to a linked saver paying 5%
The current switching offer with HSBC means new customers can get up to £220 by switching from their current bank to a HSBC UK Advance or Premier account.
The money is paid in separate amounts. You'll get one lump sum payment of £100 for switching, and then you can earn £10 a month cashback for 12 months.
Certain criteria must be met to get the full £220 and the switching process must be done through CASS.
CASS is a free service that lets you swap your old current account to a new one completely hassle-free.
You just have to contact your new bank to apply for their current account, and if you are accepted they will offer to make the switch for you.
In order to get the first £100 payment, you must meet the following criteria:
- Apply for a HSBC Advance or Premier bank account on or after March 11 and successfully open the account
- Switch an existing account from another bank using the CASS within 30 days of opening the account
- The switch must include at least two direct debits or standing orders
- Within 60 days, deposit at least £1,500 into the account over one or more payments
- Make a minimum of 20 transactions using your HSBC debit card
- Register and log on to mobile banking
- Open an Online Bonus Saver account and deposit at least £50
If new customers complete all the above steps, they will receive £100 into their current account within 30 days.
To get the further £120, they must continue to complete a number of the above steps each month for a further 12 months.
Customers must continue to log onto mobile banking, pay in £1,500, make a minimum of 20 transactions and keep their direct debits active each month, with the addition of making a monthly deposit of £50 in their online bonus saver account.
For each month they meet this criteria, £10 will be paid into their account up to a maximum of £120 - or 12 monthly payments - by the 20th of the following month.
Do bear in mind that this extra cash depends on meeting the monthly criteria, so if one month is missed, you will miss out on that month's £10 bonus payment.
NatWest and Royal Bank of Scotland
- £200 in free cash and up to £36 a year cashback. Plus, you'll get access to a linked saver paying 6.17%
NatWest and the Royal Bank of Scotland (RBS) are offering newbies £200 to switch their current accounts to an Everyday, Reward or Premier account using the CASS.
To get the cash, you'll have to deposit £1,250 into your new current account and log in to the mobile banking app within 60 days of switching.
Once you've done this, the money will be paid into your account within seven days.
You won't be able to switch if you have received a switching incentive from the NatWest Group, which RBS is part of, since January 1, 2020.
Customers switching to NatWest or RBS' Reward bank account can also earn up to £5 cashback when using their card - but they'll have to pay a £2 monthly fee.
That means they could earn £36 cashback over the year in total.
The Everyday current account from both banks doesn't offer cashback but is fee-free.
Meanwhile, there are three Premier accounts to choose from: Premier Select, Premier Reward and Premier Reward Black.
There's no monthly fee for the Premier Select account, but there is a £2 and a £31 monthly fee for the Premier Reward and Premier Reward Black accounts, respectively.
Lloyds Bank
- £175 in free cash and a 12 month Disney+ subscription. Plus, you'll get access to a linked saver paying 6.25%
Lloyds Bank is giving a £175 cash bonus to anyone who switches to one of three current accounts from a different bank.
Lloyds' offer is only available to customers who switch to a Club Lloyds, Club Lloyds Silver or Club Lloyds Platinum current account.
Customers must switch from any current account to Lloyds by Thursday March 28 to avoid missing out.
They'll then need to move two direct debits to qualify for the cash bonus, which will be paid within ten working days of the switch starting.
Customers can also choose one of the following rewards:
- Disney+ free for a year (a saving of £79.90)
- Six cinema tickets
- Coffee Club and Gourmet Society membership
- Magazine subscription
However, there is a catch as the Club Lloyds Bank Account comes with a monthly fee of £3 unless you pay in at least £2,000 every month.
Not interested in free cash?
Switching current accounts has long been an easy way to pocket free cash from banks luring in new customers.
However, these lucrative deals might not be for everyone.
But other perks including free travel insurance, interest-free overdrafts, and cashback, can also make shifting providers worthwhile.
Best for overdrafts
Overdraft debts can easily add up, so if you're prone to slipping into the red, ensure you have an account with the lowest possible fees.
First Direct’s fee-free 1st Account offers an interest-free arranged overdraft on balances up to £250.
New customers of Nationwide’s fee-free FlexDirect account will get interest-free arranged overdrafts on balances up to £1,500 for the first year of the account opening.
Remember, an interest-free overdraft should only be used in an emergency or to tide yourself over during an expensive month.
Best for cashback
You can make free money from banks with great cashback perks.
The Santander Edge account pays one per cent cashback on selected household bills and travel spending.
Bear in mind, earnings are capped at £20 a month and the account comes with a £3 monthly fee.
The app-only Chase current account also pays customers one per cent cashback on most debit card spending.
You can get up to £15 a month in cashback without a monthly fee.
Best for savers
Switch current accounts and you can access top saving rates.
For example, those opening a Santander Edge account get access to a linked saver, which pays 7% interest on pots up to £4,000.
And Barclays fee-free bank account customers can join its Blue Rewards scheme and apply for a linked Rainy Day Saver which pays 5.12 per cent interest on up to £5,000.
Best for frequent travel
Virgin Money’s Club M account costs £12.50 a month or £150 a year, but you get free worldwide travel insurance when you switch to the account.
On top of this, you’ll get free mobile phone insurance, plus UK and European breakdown cover with AA, which usually costs more than £150 a year.
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The free services could save you cash if you're a driver and frequent traveller.
But do your sums carefully to ensure it's a good deal for your circumstances.