13 September 2023 , 08:33
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Martin Lewis has explained how you can get £175 before Christmas by switching your bank account.
The switch cash is being offered to new customers who move their existing current account to the First Direct 1st Account. If you’re eligible, you’ll receive the £175 within 28 days of making the switch - so in plenty of time for Christmas.
Writing in the latest MoneySavingExpert.com weekly email, Martin said: “Yesterday another pulled, leaving just one. I hope some deals will return, but currently don't know of any fee-free accounts planning to. Luckily the one left is one of the best.”
You normally need to meet terms and conditions to qualify for bank switch bonuses. For example, sometimes you’ll need to pay in a certain amount each month, or have multiple direct debits. In some cases, you’ll need to be a new customer or not have held an account with that bank for a certain number of years.
To get the switch money from First Direct, you can't have ever had any account with First Direct, or an account with its sister bank HSBC since January 2020. Once you’ve completed the switch - you’ll need to do this through the free Current Account Switch Service (CASS) - you’ll need to pay in at least £1,000 within the first three months.
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The 1st Account gives you access to a 7% regular saver where you can put away up to £300 a month. Many customers also get an ongoing £250 0% overdraft, otherwise the overdraft is charged at 39.9% EAR variable.
Martin added: “As switching takes seven working days, do it today and you should have the money in your account towards the end of October at the latest. Plenty of time to put it towards your Christmas coffers.“
Before you make the switch, always check the current account you're moving to is right for you. And if you’re going to be putting in a big credit application soon, such as a mortgage, you may want to hold off on doing multiple switches.
This is because each application to switch will show on your credit file. MSE recommends not completing any bank switches for at least six months before you plan on taking out the credit.