Written by cost of living expert Megan Harwood Baines
Switching banks is advertised as an easy way to make free money, but we wanted to see if it’s actually that easy. Here’s what I learned…
I didn’t want to give up my actual checking account (I use Monzo for budgeting and have access to Barclays’ Rainy Day Saver), so I started opening a “burner account” with Starling in October . The money was then transferred via direct debit to several charities.
If you switch accounts, at least two balance transfers are usually required to receive the bonuses on offer. Direct debit for your charity account is the easiest way to do this without worrying about forgetting your bill. (Switching is supported by our Guaranteed Checking Account Switching Service, so you can use your actual bill if you wish.)
A month later, I switched to Nationwide for the first time. There they were offering a £200 bonus to anyone who opened a FlexPlus, FlexDirect or FlexAccount. I chose FlexDirect, which has no overdraft. After 10 days, my Starling account was closed and my situation was a little better.
Total production value: £200
A few weeks later, I was looking around for my next move. Then I set my sights on Club Lloyd’s. Club Roy’s offered £175 plus extras to choose from, including six months of Disney Plus and discounts at certain restaurants. ).
This was quite an effort, but mostly my own fault. I had recently gotten married and had been using different names between my accounts, but I accidentally opened a Lloyds account under my maiden name. I ended up having to go to a branch with my marriage certificate, change my name, and then apply for the switch again. After 10 days, I was 175 pounds better. However, we would like to warn you to always ensure that your account details are consistent.
Total production cost: £375
At this point my husband decided he wanted to make a switch and we were keen to see if we could generate as much cash as possible to save for Christmas. So, deciding he no longer wanted to use his Barclays account (it didn’t qualify for the rainy day saver), he made the jump to Nationwide for the first time.
Total production cost: £575
However, at this point Lloyd’s had stopped making offers and we had to consider making the next switch. Our next target was First Direct’s first account. However, this has some more terms and conditions. Within the first three months he must pay £1,000 and then wait 28 days before paying £175.
The best way to avoid this is to transfer money to and from your account. I switched, sent £500, waited two days, sent again, waited a few days, repeat.
We haven’t finished switching James yet, but it will be 3 months by the time the bonus is paid. we would have made £925 With free money.
So is it as easy as people say?
Overall, yes. There were some issues, but they were mostly of my own making.
It’s a good idea to be very organized, especially if you’re juggling an account with two people. It’s helpful to keep a folder with all your documents. Once, he couldn’t find an important piece of paper with his card PIN on it, so he spent half an hour on the phone with his bank to get a new one, only to find it under a fruit bowl the next day. Masu.
If you’re applying for an account that requires money to be paid, a spreadsheet that shows what’s being spent where can also help you keep track of your money.
We will continue to do so next year as the bank is constantly adding new offers.
Martin Lewis and the team at MoneySavingExpert Latest tracker of all offers – Shout out to them because they are my go-to people. He had a £175 incentive at Barclays, but he didn’t qualify for it because he had only recently opened an account.
Considering the time spent and the rewards you get in a short period of time, it’s definitely worth it. The only caveat is that it may temporarily affect your credit score, so don’t do it if you’re planning on applying for a mortgage or something similar.