Martin Lewis has revealed a simple step which can earn you up to £300 from five different banks. The founder of Money Saving Expert told This Morning viewers that First Direct, TSB, Nationwide, Santander and The Co-Operative Bank are all offering deals to persuade people to switch to them.
He explained banks will close your old account and move your direct debits and standing orders for you as part of a seven working day switching service. He told This Morning: « [Switching] is easy. »
The financial whizz said that any payments that go to your old account will be automatically forwarded to your new account for a number of years.
He added: « The only thing they don’t do, which is the bit that nobody ever mentions – and it’s pretty small – is there are three types of regular payments: direct debits, standing orders and recurring payments, which people don’t know. »
Lewis explained that a recurring payment is when you give the long number on your debit or credit card, though in the case of switching the focus is on debit cards.
He continued: « You don’t have the same rights. They’re generally for subscription type services, so many of the streaming services use recurring payments… They won’t be moved for you. »
Moving a recurring payment would have to be done manually, according to Lewis.
Lewis cautioned that there are limits to the number of times you can switch. He said many banks will say you can’t have had a bonus from them before or since 2021 or you must be a new customer.
He said: « There are always conditions, which is why the big five available right now is good because you might have done three in the past. »
First Direct’s switch offer is for £175 plus a £25 Amazon voucher. TSB is offering up to £310 in cash and vouchers.
Existing members of Nationwide can get £200 by switching to a new or existing FlexPlus, FlexDirect or FlexAccount.
Santander has a £180 switch offer although anyone who held a current account with the bank on January 1, or recipients for a previous switch incentive with them, is not eligible.
The Co-Operative Bank offers £100 for switching, plus £25 a month for up to three months. This offer is available to new and existing current account customers.
