Switch to another bank for cash and perks to beat the cost-of-living crisis
NOW is the perfect time to swap banks, to help you cope with the cost-of-living crisis.
Soaring energy bills means cashback you can earn from bank accounts has become lucrative.
If you combine that with sign-up bonuses, you could give yourself a free financial boost.
Andrew Hagger, personal finance expert, says: “The switching process is really simple now.
“So if you are not happy with the service or rates from your bank, now is a great time to consider jumping ship and getting a nice cash bonus for your troubles.”
We explain the best banking perks based on what you need . . .
Read More on Cost of Living
Best for free cash
YOU could get up to £175 in free cash just by switching to a new bank account.
Santander currently pays £175 if you move to its 123 Lite account.
This does cost £2 a month and you have to pay in a minimum of £500 a month to the account.
But you can earn between one and three per cent cashback on bills, including two per cent on energy bills.
There is a maximum of £5 in cashback per bill, so £15 a month in total.
Meanwhile, Virgin Money recently launched 25 per cent cashback on UK supermarket and fuel spending up to a £160 per month for two months.
First Direct also pays £175. You have to deposit £1,000 when you open but there’s no minimum amount per month you need to pay in to get the cash.
Halifax Reward switchers get £150. You need to pay in £1,500 or you’ll be charged £3 a month.
Read the terms and conditions before you switch, to find any clauses that might not suit you.
Best for overdrafts
OVERDRAFT debts can easily add up so if you’re someone who is consistently in the red you need to make sure you’ve got an account with the lowest fee possible.
First Direct’s 1st Account offers new customers an interest-free arranged overdraft on any balances up to £250.
Newbies to the Nationwide FlexDirect account will get interest-free arranged overdrafts on balances up to £2,750 for the first year of the account opening.
Remember, an interest-free overdraft should only be used in an emergency or to tide yourself over during an expensive month.
Best for savers
LOW interest rates have meant paltry returns for savers but some banks offer generous returns through their linked savings accounts.
Virgin Money’s M Plus bank account pays 2.02 per cent interest on balances up to £1,000.
Customers also have the option to open a free, linked easy-access savings account which pays 1.71 per cent interest on balances up to £25,000.
If you’re looking for a better savings option and do not want to switch, it is worth opening up a Chase current account on the side.
This is app-based and offers a linked savings account which pays 1.5 per cent interest on balances up to £250,000.
Best for branch services
IF you prefer to do your banking in a branch, then it’s getting increasingly difficult.
Research by consumer site Which? suggests Britain’s high streets have lost more than 5,000 bank branches since 2015.
Despite closures, there may be a local one near you that you’d prefer to visit.
For example, Lloyds Banking Group still operates more than 1,400 branches across the country across its Lloyds Bank, Halifax and Bank of Scotland brands.
Best for frequent travellers
NATIONWIDE’s FlexPlus account costs £13 a month but you get free worldwide travel insurance when you switch to the account.
On top of this you’ll get free mobile phone insurance, plus UK and European breakdown cover with AA which would usually cost you over £100 a year.
Remember to check if the perks are worth it for you, as there’s no point spending money on a service you don’t use.
Savvy Em likes to move it, move it each year
PUBLIC relations worker Emma Hull switches accounts at least once a year to take advantage of free cash offers.
Financially savvy Emma, 26, from Cardiff, estimates she’s made hundreds of pounds from doing this.
She says: “Right now I have a Halifax Rewards account.
“But I’m already looking to switch to the First Direct 1st account so I can take advantage of the £175 free cash offer.”
“I keep the extra money and put it towards some of my bills, so I can keep more of my hard-earned income.”
Emma uses the current account switching service to makes the process quick and easy.
She adds: “The service effectively moves all your outgoing direct debits and incoming salary payments to your new account without you having to lift a single finger.”
Dates for your diary: Get help with bills
AS price rises are set to bite over the coming months, now is the time to act.
These are the important dates to jot in your diary so you don’t miss out . . .
WEDNESDAY, SEPT 7: Families on tax credits started getting the first half of the £650 cost-of-living direct payment this month.
By Wednesday most should have received it.
The first payment is worth £326.
If you’re on Universal Credit or pension credit you should have already received yours.
You don’t have to do anything to claim these payments, which are tax-free and don’t count towards the benefits cap.
THURSDAY, SEPT 15: Amazon Prime is hiking its prices from £7.99 to £8.99 a month so if you don’t want to pay make a note to cancel beforehand.
It is also the day the Bank of England will announce if interest rates are rising again.
Visit mcb777.site/money after noon to find out what the decision is and how it will affect your loans, mortgages, savings and credit cards.
TUESDAY, SEPT 20: Six million people claiming certain disability-related benefits will get a £150 cost-of-living payment from this date.
However, most people will get their cash in the first two weeks of October.
If you receive Disability Living Allowance, Personal Independence Payment or Attendance Allowance, you’ll be among those who will get the cash
MONDAY, SEPT 26: Households in Wales can apply for an extra £200 to help them pay for energy bills.
The Winter Fuel Support Scheme is open to homes where at least one person receives Universal Credit, employment and support allowance, income-based jobseeker’s allowance, income support or working tax credits.
FRIDAY, SEPT 30: You’ve got until this date to spend old-style paper £20 and £50 notes or take them to your bank or Post Office.
Read More on The Sun
After this date, some banks and Post Offices may still allow you to pay them in but don’t take the risk.
Check the Bank of England’s website for how to send it your notes if you miss the deadline, but doing so will be at your own risk.