A wide selection of banks, such as Santander, are offering new customers financial incentives for switching to their current account products. During Mr Lewis’ appearance on-air earlier today, savers called and texted in their questions to the personal finance guru, with one woman sharing how she has made £1,000 by bank account switching. The host of The Martin Lewis Money Show told Radio 5 Live listeners how bank switching works in practice.
“For me, that means if you’re not deliriously happy with your existing bank account, I say: ‘Carpe pay em’! Seize the payment!”
However, Mr Lewis cautioned potential account switchers on listening too much to “horror stories” from people who have switched banks in the past, in lieu of considering the benefits.
He added: “I know some people are horrified by the idea of switching banks because they’ve heard scare stories.
“But, I would go to whoever has that scary story and ask when did they switch. My guess is most will be over eight years old, which is when the seven-day switching system came into play.
“That means now the bank switching service closes your old bank account for you.
“It auto moves all your Direct Debits or standing orders and any payments that incorrectly go to your old bank account number are automatically forwarded too.”
Ultimately, the finance expert believes savers should seriously consider switching banks to gain extra cash if they are not 100 percent committed to their current account.
Mr Lewis said: “You may be happy with your bank. You may have really great terms there, in which case stick with it, and actually banks tend to do really well in customer service feedback.
“But, unless it’s giving you a back massage and saying good morning, unless it’s making you deliriously happy, as so many are willing to pay you cold hard cash to move to them, it is with considering switching.”
Specifically, the financial journalist spotlighted Santander’s bank account switch deal, which gives new customers an additional £130 financial boost.
In order to get this cash grab, savers will need to apply for one of Santander’s current accounts.
The accounts which are part of the deal include the bank’s 1|2|3 Current Account, 1|2|3 Lite Current Account, Everyday Current Account, Select Current Account, and Private Current Account.
Upon filling out the online application, customers will need to choose the option to switch to one of these accounts from a current account they hold somewhere else.
This deal is eligible for new and existing customers, however current Santander account holders will still need to set up two Direct Debits and pay £1,000 into their new account.
On top of this, existing customers who do not have a current account with another bank are not eligible for the £130 cashback offer as this is an incentive offer for new customers specifically.
Speaking on the radio, Mr Lewis addressed this further for a listener who was enquiring about their eligibility.
He added: “If you’ve not had a switch incentive before and you’re not moving a non-Santander account in, you could get it.
“But, if you’re talking about switching your Santander 1|2|3 to the 1|2|3 Lite, then you won’t get the switch incentive.”
Coming out of the pandemic, savers will have plenty of banks to choose from when debating whether to switch accounts.