Martin Lewis’ MSE issues warning to anyone with a bank account to switch in deal that could leave them up to £600 richer
MARTIN Lewis' MoneySavingExpert has revealed how to make an "easy" £600.
The group shared a tip-off that Santander has launched a new switch deal that could be very profitable.
He suggested making a simple change that will make your money work harder for you.
The Money Saving Expert posted on X, formerly Twitter,: "Santander’s launched a new bank switch deal, with some serious perks… FREE £175 + 7% savings + 1% cashback on bills + cheap spending abroad + possible 2% cashback on all spending."
According to the experts at MSE the "lucrative deal" could be worth as much as £600a year.
In the they explained: "To switch bank, they require you to pass a not-too-harsh credit-check and use their seven-working-day switching service (it'll close your old account for you, ensure any payments to it are auto-forwarded, and move the balance, standing orders and Direct Debits across)."
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Essentially, by making the switch from your current bank, you can scoop up an initial £175 as an incentive.
Within 60 days, set up two or more direct debits and pay in £1,500 to the new account.
The £175 will be paid between 60 and 90 days after starting the process.
But, beware there's a £3 a month fee with the Santander Edge account.
Opening a Santander’s Edge Up and Santander Private Current Account (v2) will also get you the bonus cash, but costs £5 a month.
Alastair Douglas, chief executive of TotallyMoney previously told The Sun that when you take into consideration the fees attached to the accounts customers will need to switch to the bonus drops.
He said: “In reality, the switching bonus on offer is either £139 or £115 — which along with free-fee foreign spending, cashback, and easy access savings rates of up to 7%, still isn’t a bad option.”
The cheaper Edge account pays you two lots of cashback of £20 a month, including 1% cashback on expenses like council tax and bills.
You also get 1% cashback on debit card spending at supermarkets, on fuel and travel.
How do I switch bank accounts?
SWITCHING bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS).
Dozens of high street banks and building societies are signed up - there's a full list on CASS' website.
Under the switching service, swapping banks should take seven working days.
You don't have to remember to move direct debits across when moving, as this is done for you.
All you have to do is apply for the new account you want, and the new bank will tell your existing one you're moving.
There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account.
You should get in touch with your existing bank for any old statements.
When switching current accounts, consider what other perks might come with joining a specific bank or building society.
Some banks offer 0% overdrafts up to a certain limit, and others might offer better rates on savings accounts.
And some banks offer free travel or mobile phone insurance with their current accounts - but these accounts might come with a monthly fee.
The money saving experts estimates this will could up to £100 saved a year for the average household.
To be eligible, customers would need to pay £500 per month into the account.
Edge allows for access to a saving account with 7% interest up to £4,000 - which means up to a maximum of £270 in annual interest.
And if it's a joint account, this would be £500.
Finally, an Edge credit card gives you 2% cashback on almost all spending, equalling a profit of up to £12 a month.
But remember using a credit card is means you are borrowing money and getting into debt.
If you do borrow on a credit card then make sure to pay off the balance in full every month, otherwise you'll be charged interest and this could cancel out any cashback savings you make.
The rate you can get can vary depending on your circumstances, but representative APR annual percentage rate is 29.8%.
Also remember when you switch bank you should also take into account other factors, like customer service if it's important to you, or the availability of an overdraft if you need it.
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Switching banks regularly can also negatively impact your credit score meaning you're less likely to be approved for a loan or credit.
Your credit score may be affected if you make a switch so bear that in mind if you are looking to apply for a loan or you are planning on buying a property any time soon.