02 January 2023 , 15:57
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Martin Lewis' MoneySavingExpert (MSE) has explained how to get £175 free and 7% interest on your savings by switching bank accounts.
Sometimes high street banks often offer cash incentives to tempt new customers to join them.
Currently First Direct is offering new customers who switch to their 1st Account through the Current Account Switch Service (CASS) a whopping £175.
On top of this, once you have opened a current account with First Direct, you will also then have access to its regular saver account which currently has an interest rate of 7%.
The Money Saving Expert website recently highlighted the switching offer (Getty Images/iStockphoto)In order to get the bonus, you will need to open the 1st Account and within three months switch to another account, which is not First Direct, into it.
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It can be an HSBC account, but only if it was opened before January 2019. You will then also need to pay over £1,000 into the account within this same time frame.
Once this has all been done, the £175 is then paid within 28 days.
First Direct has noted that the offer is limited to one payment per customer of joint account.
The Money Saving Expert (MSE) website has recently highlight the offer as being one of the best currently on the market (Jonathan Hordle/REX/Shutterstock)This offer is limited to one payment per customer or joint account, and you'll get the money within 28 days of all the criteria being met
If you are not wanting to commit to a full switch just yet, First Direct gives newbies £20 for just opening an account with them.
As well as the £175 bonus, the First Direct 1st Account offers a 0% EAR variable on arranged overdrafts up to £250.
Arranged overdrafts over £250 and unarranged have a 39.9% EAR variable rate of 39.9%.
On the recent MSE update to the page, the team describe first directs service as “cracking” as it received a “great” rating of 88% in its last poll.
If you want to open the First Direct Regular Saver Account which offers 7% interest, you will need to put away £300 every month for 12 months.
By doing this, you'll earn approximately £136.50 interest.
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Remember, you should only switch to a new bank account if it is the right one for you - always read the terms and conditions properly first before applying.