27 December 2023 , 08:56
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If you’re feeling skint after Christmas, switching your bank account could be an easy way to make some extra cash.
First Direct is paying new customers £175 to move their current account. In addition to this, you also get access to its linked regular saver which pays 7% interest on up to £300 a month.
Many people will also get an ongoing 0% overdraft up to £250. To get the £175 switch money, you need to move from your current bank using the free Current Account Switch Service (CASS). You’ll need to pay in at least £1,000 within three months into your new First Direct account. Once you’ve done this, the £175 will be paid in 28 days.
But you won’t be eligible for the switch money if you’ve previously had any account with First Direct before, such as a current account, credit card or mortgage. You also can't have opened a current account with sister bank HSBC since January 2020.
First Direct is covered by the Financial Services Compensation Scheme which offers savings protection of up to £85,000. The best and worst banks based on the number of people switching were last revealed in October this year.
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NatWest saw the highest net switching gains (99,695) between July to September, followed by HSBC (25,769) and RBS (16,017). On the other end of the table, Santander recorded the highest net losses (-32,560) shortly after Barclays (-21,598) and Halifax (-22,014).
A total of 344,195 switches took place between July to September, according to the Current Account Switch Service (CASS). This is up from the 344,195 switches that took place during the same time last year.
From a yearly point of view, some 1,399,571 switches happened between October 1, 2022 and September 30, 2023. This figure represents a 63% year-on-year increase on the 859,751 switches that occurred during the previous 12 months. Switching takes seven days through CASS and this transfers over all your regular payments, including your salary and direct debits. Your old account will also be shut for you in the process.
John Dentry, product owner at Pay.UK, owner and operator of CASS, said: “The Current Account Switch Service marked its ten year anniversary this quarter, and in that time the Service has upheld an important role in supporting consumers and businesses change their current account to better suit their needs. It is particularly noteworthy that three new customers, Citibank, Allica Bank, and Rothschild, have joined the Service this quarter, enabling greater choice for consumers and demonstrating the significance of the Service.”