Switching your bank account has never been easier. New regulations mean you can now move your current account, along with all your direct debits and standing orders, to another bank within just seven days. Because of this, banks are now offering cash incentives for switching your bank account over to their bank, meaning you could make money for very little effort!
Here are the latest current account best-buys that could make you money.
It’s strange, most of us don’t bother to switch our account. In fact, you’re more likely to get divorced than change your bank account – which is madness, as it’s easy to do and the rewards speak for themselves as you can see from our top picks here:
- Current accounts that pay you interest and cashback
- Current accounts that pay you to switch
- Ready to change yet?
Santander 123 Current Account
This great account offers up to 3% cashback on your household bills:
- 1% on water, council tax and Santander mortgage payments
- 2% on gas and electricity bills
- 3% on mobile, home phone, broadband and paid-for TV packages
Plus, there’s up to 3% interest to be had on your balance:
- 1% AER on balances from £1,000
- 2% AER on balances from £2,000
- 3% AER on balances from £3,000 – £20,000
To qualify, you’ll need to:
- Pay a monthly account fee of £2
- Fund the account with £500 a month (a minimum balance of £1,000 is required to receive interest).
- Set up at least two Direct Debits.
Good if: you know there will always be at least £500 going in every month and you’re happy to use this as your main account.
Bad if: you’re not prepared to pay a small fee for your current account, despite the benefits.
Nationwide FlexDirect Account
So if you have the full £2,500 invested in this account, it would net you £125 interest over a year.
To qualify, you simply need to pay in £1,000 every month.
Good if: you usually have a balance of £5,000 or over.
Bad if: you’re always dipping into your overdraft – once the fee-free period expires, you’ll be charged 50p a day for using it.
The new seven-day switch legislation means that not only is it easier than ever to move your money to a better account, banks are falling over themselves to get your business. Here are some great accounts offering you a cash incentive if you switch to them.
First Direct 1st Account – £125 for switching
First Direct are offering a lovely £125 if you move your money to their 1st Account. Plus, you’ll get a £500 overdraft as standard, £250 of which is free of interest.
First Direct are so confident that you’ll love their service that they’ll pay you £100 if you decide to move your account elsewhere within 12 months!
Halifax Reward Current Account – £100 for switching
Halifax will pay you £100 when you switch to their Reward Current Account. The benefits don’t end there, though – you’ll get a £5 reward every month you pay in £750 and pay out two direct debits. You must have remained in credit the previous month, but it’s a nice incentive to do that!
There’s a £50 overdraft buffer, so you won’t pay any annoying unplanned fees if you’re a little bit over your limit.
Ready to change yet?
Many of us can’t be bothered to change our account every six to twelve months to ensure we’re getting the best deal on the market. That’s fine – but even the laziest of us should consider switching every now and then. Banks rely on you not bothering to look for alternative accounts, but now it’s never been easier to switch so it’s a great time to take advantage of the incentives available.
You’re under no obligation to stick with your current bank, and the rewards are out there for those who change.