Many banks and building societies offer new customers cash bonuses as an incentive to sign up for one of their savings accounts. Financial experts and journalists, such as Martin Lewis, are among many urging people to take advantage of these account switching deals as soon as possible. A woman tells how she made an extra £900 in a year by switching savings accounts several times in a row.
Verena Hallam, 32, from Lancaster spoke with MoneySuperMarket on the hundreds of pounds she has earned by switching to a bank’s savings product.
Ms Hallam said: ‘In 2019 I was looking for a faster way to build up an emergency fund as I didn’t really have much disposable income after paying all my bills and was frustrated with the slow pace of progress. do with saving.
“I came across Martin Lewis’ guide to the best bank accounts, and the switching bonuses sounded pretty enticing.
“I decided to give it a try and couldn’t believe how easy it was. For about ten minutes of work completing the application and change request forms, I had earned £100.
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“I’ve changed bank accounts seven times since, and made £900 in the first year, which has helped me enormously towards my savings goal.”
Of the overall amount she has won, she added: ‘So far I’ve won £1025 in total plus a free box of wine.
A recent survey by MoneySuperMarket asked Britons what they look for in a bank checking account.
Some 42% said they had looked at the interest rate, while 37% wanted a low-interest overdraft.
DO NOT MISS
The seventh most sought-after feature in a bank account is whether or not there is an incentive to transfer cash, with 17% looking for this feature.
Other features people wanted to see in an account were spending trend notifications and cash rewards for a successful direct debit.
Jo Thornhill, personal finance expert at MoneySuperMarket, explained how often someone should switch accounts to get the best deal
Ms Thornhill said: “Switching current accounts can be a great way to earn extra cash and access membership bonuses.
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“However, it’s worth noting that switching checking accounts too often can affect your credit score.
“Requesting a new checking account will show up on your credit score, as many banks will do a ‘rigorous check’ which will show up on your credit report.
“A hard check if you’re opening a new bank account won’t cause too much trouble, but if you get several hard checks in a short period of time (if you’re changing energy providers, applying for a loan, etc.) then it can be a problem.
The savings expert explained how easy it could be to switch current accounts and whether it was possible to do so several times in a year.
She added: “The changeover process is very fast and takes seven working days.
“The earliest your change can be made is just over a week from the time you register with your new bank.
“You should choose a day when you have no direct debits coming out of your old account so that no problems arise in the process.
“Also, don’t set up regular payments from your old account during the seven-day transition period either, or they won’t carry over.”
