There is a lot of money to be made here from a very modest amount of work. According to this article from MoneySavingExpert, one person made £920 from bank account switching alone.
Is it complicated to switch your bank account?
Changing your bank account could not be easier. Thanks to the 7-Day switch guarantee introduced in September 2013, your account could be switched in, errrrr seven days (well, seven working days). The bank does all the hard work including the swapping of direct debits and the moving over of standing orders. In fact, it’s so easy to do, over 3 million accounts have been switched.
How much do you usually earn?
Most accounts will pay in the region of £100-£150 for switching. Sometimes this can be as much as £200, although this usually means staying with the bank for at least six months.
But I like my bank
If you don’t, then it’s time to set up a new account. A sacrificial lamb if you will. Now, this could be a 2nd account from your current provider or look at companies that don’t offer incentives (such as NatWest). Usually, this can all be done online so no need to move from your chair. Awesome. This will normally take up to around two weeks to open. Occasionally the bank may ask for you to provide them with evidence of ID before they open your new account, but I’ve yet to be asked.
These could be a couple of savings accounts. Although be careful, some accounts take money by standing order rather than direct debit. However, Tesco and the Post Office offer accounts with a direct debit option. Again, their accounts can be set up online with little hassle. My direct debits are for £10 each and it’s very easy to transfer the money out of these accounts. Alternatively, you can set up a direct debit with a charity or the Lottery.
How long will it take before you can switch?
If you’ve opened a new account to begin a switch, then wait for the direct debits to become active. This does, of course, depend on the dates you arrange them to be taken out of your account. Once your account is set-up with the direct debits, you’re ready to roll and swap away!
To receive the switching incentive, you usually have to deposit a certain amount of money within a period of time or every month if it is an incentive for staying with the bank. This doesn’t have to be from wages and can be transferred out straight away. However, always check the T&C’s before switching.
And don’t worry, having multiple current accounts isn’t frowned upon. I have six at the moment and heard of people in double figures!
Ready to get started? Find more switching offers I’ve reviewed.
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