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I have made a lot of money from switching my bank accounts in the last year. It is simple and there are some great offers out there to take advantage of.
What is bank account switching?
Bank account switching is where you take advantage of offers from different banks to switch from your current bank to a new one.
Different banks offer incentives to get you to join them and my switching from one account to the other you can take advantage of these deals.
Why switch bank accounts?
For the money! Most banks will offer you money to join up. Others will offer a gift voucher and other incentives.
Plus, if you are not completely satisfied with your current bank, then perhaps a financial incentive is what you need to leave your current provider.
There is little to lose other than the time taken to apply to the bank. The application processes are usually quick and the reward is good.
How much money can you make from it?
Well, that depends! Mostly on what offers are available at the time and what account you have already. With the offers that are around at the moment, there’s at least £500+ available.
What offers are out there?
The most up to date list can be found at Money Saving Expert with details of the terms and conditions for each offer.
However, I will summarise some of the offers that you can make money on:
HSBC Advance – £175
This is a big one. If you are not already an HSBC customer and have £1750 paid into your account every month then you can make the most of this.
Natwest – £150
A great offer from Natwest. This one seems to go up and down in value, but £150 is definitely near the top end.
Lloyds Bank – £125
This is a new one and is offering an good amount in return for your custom. However, watch out for the £3 a month fee for not paying in £1,500 per month.
First Direct – £50
A simple switch and get cash service and they also offer 0% on overdrafts up to £250. Therefore, a good choice if you are in the red.
What is switching?
To take advantage of these offers, you must go through the “Switch Guarantee” system. Most bank accounts are eligible for this but check before you start.
The Switch Guarantee means that the bank must transfer your old account, including the balance and any recurring payments within 7 working days. They will then close your old account.
The process is designed to make the process of leaving one bank to move to another easy. Therefore, you should not have to do anything else once you have started this process.
However, it is worthwhile to be vigilant as sometimes things do get missed. Most banks will happily sort this for you if you let them know.
What do I need when I make the application?
Different banks ask for different things, but the main ones are:
- Your personal details including address history for the last few years.
- Basic details about your income and expenditure
- Details of the account you want to switch including account number, sort code and card number.
You may be asked for further information after you have made your application including proof of ID etc, but this varies from bank to bank.
Watch out if you are overdrawn
You can still take advantage of these offers if you are in your overdraft but you need to be a bit more cautious.
Some banks will offer different deals for those transferring an overdrawn balance, so it is important that you look at the rates and fees that they will charge you. High-interest rates could well outweigh any of the incentives you are offered for switching.
Personally, I’d consider keeping this account separate and following the method I used below.
How I went about it making money from bank account switching
When I started matched betting, I opened a new account to keep track of all my profits and to prevent confusion in my current account.
I opened this account with Santander because they had no connection to my main bank. This was a perfect account to use for switching.
Since then I have switched this account several times and now use a completely different account for matched betting. This account was not overdrawn, nor was it particularly important to me.
In the last year, I have changed this account four or five times to take advantage of various different offers. Once I have received the switching bonus, I transfer the money to my main account and then leave this one alone until another offer comes up.
My final advice on switching bank accounts
Make sure you read the terms and conditions. Sometimes, you will be required to paying in a certain amount to qualify, or you’ll need to sign in to internet banking or transfer some direct debits.
Most of these are easily achieved, but you don’t want to miss out on your lovely money because of something simple.
Disclaimer: Remember the information you read here does not represent advice. Any ideas or suggestions are just that and may not work for you. Read the full disclaimer here.