We have discussed in the past that remaining loyal to companies just no longer pays off and this even applies to banks, did you know that you could actually get paid to switch banks?
It has become more and more apparent in recent weeks that companies are scaling back their benefits and bonus schemes, with big brands such as Tesco and Boots both cutting their reward card points per pound. So why do you remain loyal to your bank?
Traditionally over the years, people have remained loyal to their banks as the time and effort to switch has never been rewarded. However, in recent years, this has all now changed and things have become a little more competitive in the market for customers.
What benefits can you get from switching banks?
Now, other than the usual changes such as interest rates on accounts, there are lots more options being offered out. Here are currently some of the top offers on the table from the banks:
Halifax – £175 paid into your bank account after the transfer over plus the choice of one of the following every month £5 cash, a Vue cinema ticket, two Rakuten TV movie rentals, or three digital magazines. Once you make your choice, that will be what you receive every month for a year.
Natwest – £200 paid into your account plus £3 every month for a year if you use their app.
First Direct – £1750 paid into your account, this then links up to a savings account that pays 7% interest.
This is just an example of the current offers out there and these change on a regular basis.
Are there any restrictions on the bonuses for switching banks?
Yes, there is, so reading the small print is key!
Many of the offers will have restrictions such as you can not have held a bank account with the new bank in the past. Then there are usually other restrictions such as paying a set amount in monthly or within a set period or even setting up a set amount of direct debits to go out.
Don’t let this put you off though, for many of us, the restrictions put in place are easily manageable based on what we would usually use our bank accounts for.
Does switching banks take a long time?
No, not any more it doesn’t.
In fact, thanks to the new Current Account Switch Service (CASS), your new bank account will be up and running within 7 working days.
To get your account switched, all you need to do is open up your new account and then put in a request to switch. As part of the process, it will automatically move over your direct debits and standing orders across. It should also move the balance remaining over and closet your old account.
Can I switch bank accounts more than once?
Yes!
There are no restrictions on how many times you can switch bank accounts, just make sure that you are completing all the requirements to get your bonus payments before you do this.
It may feel as though this is a lot of effort to switch bank accounts for not a lot of rewards but let’s look at it from another perspective. If between you and your husband/wife/partner, you have 2 current accounts each and you can both switch accounts 3 times a year, that is a potential £550 each in that one year paid in your bank for something that will take minutes to complete.
This is not going to be for everyone but I hope it opens up your eyes to the potential out there when you step away from the loyalty that you show to companies, they don’t offer it back to those loyal customers!
