Are you looking to make some extra cash this tax year? Switching to a new bank account could help. Many banks are offering lucrative incentives to attract new customers, including cash bonuses, cashback, and high-interest rates on savings. In this article, we will take a look at the banks that are currently offering free cash to customers and how you can claim it.
Banks Desperate for New Customers
1.1 Why Are Banks Giving Out Free Cash?
Banks are competing for new customers in a highly competitive market. Many banks are offering incentives to attract new customers to switch their accounts. By offering cash incentives, banks are hoping to encourage customers to make the switch and become long-term customers.
1.2 How Much Cash Can You Get?
While most banks offer incentives to new customers, the amount of cash you can get varies. Some banks offer a small cash bonus of £50, while others offer up to £200.
1.3 Are There Any Conditions to Claim the Cash?
To claim the cash, customers usually need to meet certain conditions. For example, some banks require customers to pay in a certain amount of money each month or set up direct debits. Other banks may require customers to keep their account open for a certain period of time.
Banks Offering Free Cash
2.1 NatWest and RBS
NatWest and RBS are offering a cash bonus of £200 to new customers who switch their current account to the NatWest Reward or RBS Reward account. Customers also receive up to £5 a month in rewards and 1% cashback on spending with partner retailers. To claim the cash, customers need to switch from a different bank, deposit £1,250 into the account, and log into the mobile banking app within 60 days.
2.2 First Direct
First Direct is offering a cash bonus of £175 to new customers who switch their current account to First Direct. Customers also receive access to a savings account paying 7% and an interest-free £250 overdraft. To claim the cash, customers need to switch using the Current Account Switch Service and deposit £1,000 within three months.
Nationwide is offering a high-interest rate of 5% on balances up to £1,500 for the first 12 months. New customers are also eligible for an interest-free overdraft for the first year. To qualify, customers need to have a Nationwide FlexDirect account and pay in a minimum of £1,000 each month.
Santander is offering 1% cashback on household bills paid by direct debit and essential spending up to £10 a month. Customers are also eligible for a linked savings account that pays 4% interest. To claim the cashback, customers need to pay in at least £500 each month and set up a minimum of two direct debits on the account.
How to Claim the Cash
3.1 Check the Terms and Conditions
Before switching your bank account, make sure to read the terms and conditions carefully. Check to see if there are any fees or charges associated with the account and make sure the account works for you.
3.2 Switch Using the Current Account Switch Service
To switch your bank account, use the Current Account Switch Service. This service ensures that all of your payments and direct debits are transferred to your new account. The service is free, and the switch should take no more than seven working days.
3.3 Meet the Conditions
To claim the cash, you need to meet the conditions set by the bank. Make sure you pay in the required amount each month and set up any direct debits or
If you’re not in a rush to switch banks, it might be worth holding out for a better offer to come along, as new promotions are frequently launched.
- Keep an eye on fees
Before you switch, it’s essential to be aware of any fees involved. Some accounts require a minimum monthly deposit or charge monthly fees, which can significantly reduce the value of any rewards or cashback.
- Check the account terms
Make sure you read the terms and conditions carefully before switching to a new account. For instance, some banks might require you to use their mobile app to qualify for cashback or other incentives.
- Consider the long-term benefits
While cash bonuses and incentives might be appealing, it’s also worth considering the long-term benefits of switching banks. This could include better interest rates, lower fees, or a more convenient online banking experience.
- Don’t forget about your existing account
Before you switch, make sure you’ve closed any direct debits or standing orders linked to your existing account. It’s also worth checking that you’ve transferred any remaining funds to your new account and closed your old one to avoid any unexpected fees or charges.
- Be prepared to switch again
If you’re not entirely happy with your new account, don’t be afraid to switch again. Many banks offer incentives for switching to them, so you could potentially earn even more free cash or rewards.
In summary, switching banks can be an excellent way to earn free cash, cashback, or other incentives. However, it’s crucial to do your research and read the terms and conditions carefully before making a decision.
Q: Are there any risks involved in switching banks?
A: Switching banks is generally considered safe, but there are some risks to be aware of, such as potential fees or charges from your old bank or difficulty accessing your funds during the switching process.
Q: How long does it take to switch banks?
A: The Current Account Switch Service guarantees that your account will be switched within seven working days, although some banks might take longer.
Q: Can I switch banks if I’m overdrawn?
A: Yes, you can switch banks if you’re overdrawn, but you’ll need to pay off any outstanding balance before the switch is completed.
Q: Will switching banks affect my credit score?
A: Switching banks won’t directly affect your credit score, but some banks might perform a credit check before offering you an account.
Q: How often can I switch banks to earn free cash?
A: There’s no limit to how often you can switch banks to earn free cash, but it’s worth considering the long-term benefits of switching before making a decision.