THE cost of living crisis is squeezing households' budgets - but you can get free cash by making a simple switch.
Three major banks are offering customers up to £200 to switch to one of their current accounts.
Santander, Lloyds and First Direct are all offering switching bonuses.
Banks often offer customers switching bonuses to entice new customers in.
Santander is offering new and existing customers £200 if they move over to one of five current accounts.
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Meanwhile, Lloyds is offering £200 to customers transferring to a Silver or Platinum Account.
First Direct is offering £175 to anyone who opens a 1st Account.
But in some cases you might have to do certain things to unlock the bonus.
Plus, it's always worth checking out banks' terms and conditions when switching.
They often throw in extra freebies such as limited-period interest-free overdrafts.
So, depending on your circumstances, it might be better to take a lower cash bonus if the overdraft offer suits you.
You might have to pay a monthly fee to maintain the account too - so that's worth considering.
Santander
Santander is offering new and existing customers the £200 bonus if they switch their current account to one of the five:
- Santander Edge Current Account (with a £3 monthly fee)
- 1|2|3 Current Account (with a £4 monthly fee)
- Everyday Current Account (no monthly fee)
- Select Current Account (with a £4 monthly fee)
- Private Current Account (with a £4 monthly fee)
But to get the bonus you have to set up two active direct debits, pay in £1,000 and log on to online or mobile banking within 60 days of telling Santander you want to switch.
The bonus will be paid into your account within 30 days of this 60-day period.
Major bank offering £200 free cash - how to claim
If you are an existing customer with Santander and want to get the bonus, you should visit your local branch.
Do note though, Santander's website says you may have to book an appointment.
Customers switching might be eligible for a four month fee-free arranged overdraft too, but this depends on what account you pick and your financial circumstances.
You can make the switch through the Current Account Switch Service (CASS).
But if your bank or building society is not part of the service you can still make the switch for free.
Lloyds
Lloyds is offering a £200 switching bonus to customers who switch to one of four current accounts, including:
- Lloyds Silver Account (with a £10 monthly fee)
- Club Lloyds Silver Account (with a £13 monthly fee)
- Lloyds Platinum Account (with a £21 monthly fee)
- Club Lloyds Platinum Account (with a £24 monthly fee)
With both the Club Lloyds Silver Account and Club Lloyds Platinum Account you can get £3 deducted from your monthly fee if you add £1,500 or more into the account each month.
This is going up to £2,000 from April 1 for both accounts though.
The bonus will be paid into your account within 10 working days of you starting the switch and will appear as cash credit.
Existing Lloyds customers can get the bonus too - so long as they haven't received cashback from the bank since April 2020.
The deadline to start the switch is March 20, although you can complete it later on through internet or mobile banking.
You might be able to get a three-month interest free overdraft too.
But, be aware, you will have to start paying daily interest after this period.
You can make the switch through the Current Account Switch Service (CASS).
First Direct
First Direct is offering customers who switch to its 1st Account a £175 bonus.
But you have to pay at least £1,000 into the account within three months of opening it and switch your everyday banking to First Direct to get the free cash.
The offer is also only available to customers who are new to First Direct.
Anyone who has opened an HSBC account on or after January 2020 can't apply for the bonus either.
Again, you can make the switch through the Current Account Switch Service (CASS).
How do I switch my current account?
You can switch through the Current Account Switching Service (CASS) in a few steps.
You just have to contact your new bank to apply for the new current account.
If you are accepted, they will offer to make the switch for you automatically and ask you to choose a date to do it.
Your old bank should then talks to your old one and everything will be switched across, including your balance, direct debits and salary.
After this you will receive your new cards, log-in details and any PINS.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk
