30 August 2023 , 10:34
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Martin Lewis' MoneySavingExpert.com website has warned banks are "culling" their switch bribes - so if Brits are thinking of moving accounts, they may want to do it now.
In the recent MSE newsletter, the team told readers there were just three banking groups left paying people to switch over to them. At the time of writing, NatWest, First Direct, and Halifax are offering cash to switch. You can get £300 for free by switching to NatWest or its sister bank RBS, £175 by switching to First Direct and £150 for Halifax.
However, it also won't be long until there are only two left - as Halifax is going to drop its switching offer this week. The MSE team explained you need to pass a "not too harsh" credit check and use the Current Account Switching Service (CASS) to move bank accounts.
CASS guarantees to complete your switch within seven days and everything is usually switched over automatically, including your balance, direct debits, and salary. However, you should be aware there are often other hoops you will need to jump through to be eligible for the switching cash - such as depositing a certain amount of cash each month. Here are all the switching offers, highlighted by MSE, on at the moment.
NatWest/RBS - £200
The MSE team say this is the top account for "upfront cash". If you switch to one of these sister banks - specifically the NatWest Rewards and RBS Rewards accounts - you will need to you should get your £200 switching money within seven days. With these accounts, there is a £2 fee however, the MSE team says you can £5 cashback each month so overall you'll be £3 a month or £36 a year up. To get it all, you will need to pay £1,250 in a month, then every month have two or more direct debits of £2 or more going out. You will also need to log in to the mobile banking apps too.
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First Direct - £175
HSBC sister bank First Direct launched this offer last year and gives all new customers £175 when they switch to their current account. You must also pay at least £1,000 within three months of opening the account to get the cash and it is only available to those who haven't held an account previously with First Direct. Customers may however hold an HSBC current account and still qualify for the offer, as long as the current account was opened before January 1, 2019. If you switch, you should receive the funds within 28 days.
The MSE noted that First Direct had come out on top - or near it - on every bank service poll it has ever done. Alongside this, First Direct gives customers free overseas spending as well as a 7% regular saver as well as a 0% £250 overdraft.
Halifax - £150 (Ends Thursday)
The MSE team says the Halifax Rewards is "top" for overall cash - provided that you switch before the deadline of August 31. If you switch, you will get the £150 upfront within three working days of completing it. Halifax will also give you £25 cashback for each month you spend £750 plus on most debit card spending in September, October and November. However, you must pay in £1,500 a month to avoid a £3 month fee.
You also can get a £5 a month reward from Halifax with this account. However, you will need to pay in the £1,500 a month, stay in credit and either spend £500 using the direct debit or keep a minimum of £5,000 in the account at all times.