This week on ITV’s The Martin Lewis Money Show. He explained exactly how people can make the most of the current bank switching deal. This is especially useful advice, since so many people are looking not be better savers and to get in on some banking offers. When interest rates are increasing and the cost of living is on the rise. Then Lewis’ recommendations become even more important.
Bank Switching Deals: What Are They?
Bankwissel deals are marketing offers banks use to attract customers to close their primary account and move it elsewhere. These offers can be in the form of cash back. Reduced interest savings or other benefits that incentivize a customer to switch.
Lewis said that these arrangements can be used to help people increase their savings or stick a positive balance on the budget. Through offers like bank switching incentives, Martin Lewis highlights how customers can get new accounts that have better terms or pay higher interest on their balances.
Top Bank Switching Deals Right Now
Right now, there are some great switching offers being given by multiple banks. As Lewis notes, these offers are not only targeted at people with a bad credit history. But also those who are better off financially. A lot of current deals are set up to include cashback offers. Savings accounts at high interest rates, or guaranteed bonuses.
For instance, the Nationwide FlexDirect account gives £200 cash to customers who switch to the bank and meet certain criteria. First Direct also offer a £175 bonus for new customers who switch and meet the account requirements.
One comment from Lewis was that some offers come with nice starting interest rates. Martin said that we should always think about the best ways to build passive income. A prime example of this is the Santander 123 Lite account which has some excellent cash deposit rates. Making it very attractive to those who want to maximise their savings opportunities.
This Is Why You Really Should Think About Swapping Banks
Martin Lewis says switching bank is easy and can bag you up to £200 For years and years. Many people stay with same bank habitually or because they are scared of switching requirements. But the truth is that with a bit of elbow grease and some good knowledge, pergolas are easy to build and well worth making.
You could be saving a lot of money by doing so just with switching to bank that gives it as promotional offer or higher returns. If you switch, many banks offer £200 or more as an incentive, so it’d be foolish to ignore.
Maximizing Bank Switching Deals.
She added that there are a number of tricks consumers can use to make the most of bank switching deals. Martin Lewis also has tips on how to maximize these deals.
Check if you are eligible: Some switching deals are not open to everyone. Conditions may apply depending on the bank whether or not you are a new customer, if you have funds in your account, etc.
Meet the Terms: To be eligible for the entire bonus, ensure that you meet all requirements. Indeed some deals demand direct debits to be set up, pay in a minimum monthly amount or keep a balance.
Compare Different Offers: Bank switching deals are not all alike. Determined by the consequences take a look at what suppliers are providing bidding around your preferences and discover.
Think Long Term: Colonial Penn and other offers may have sweet front-end benefits, but it’s about the benefits of the account after all. Check the charges, interest rates as well as your typical customer experience.
The Importance of Timing
Timing is key in bank switching, says Lewis. While banks often change what they offer, there are these ‘specials,’ which could be time limited – where interest rate is a bit higher or you get more points in the short term.
For example, Barclays or Lloyds Bank, will often have promotional periods where they offer more cash or better terms on their switching deals. So looking out for these offers can certainly help the customers to avail the best value.
How simple is it to change banks?
A point Lewis kept returning to on the show is that changing banks is far simpler and less of a hassle now than it has been in the past. The process is secured by the Current Account Switch Service (CASS), promising that it takes a week to switch over and that all direct debits, salary payments, and standing orders are automatically moved over to your new account.
It takes a lot of the headache and risks out of jumping from one bank to another. So that is resulting in large numbers of customers snapping up these deals and able to avail the monetary incentives which are being put on offer.
Should You Switch Banks?
But should you really bother changing banks? Martin strongly suggests it for those who will be able to take advantage of the present offerings, as rates and incentives are expected to change. Interest rates are increasing and the ferocity of the battle between banks is at an all-time high. So now must be a great time to appraise your current account and think about moving.
At the end of the day, it all depends on your financial goals. If you want cash now or the best interest rate, this is your next course of action. Although if you are content with your current account and would not require any extra features it may be too much effort for some.
