Maximise on bank switch incentives - earn up to £900 - all-in-one guide
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Maximise on bank switch incentives - earn up to £900 - all-in-one guide

1876
Found 10th Dec 2014
UPDATED - 4th May 2017

Warning: long post ahead with lots of information. Any questions then please ask and I’ll do my best to answer.

So, this money making idea is based on the recent boom of current accounts offering ‘switching incentives’. Some banks offer money, others offer gift cards. It’s time to play them at their own game by gaining the incentive and then moving on to the next one. Currently, there are 9 banks offering these offers:

1. Yorkshire/Clydesdale Bank - no incentive at this moment in time.

2. Co-Op Bank - £110 incentive and then an ongoing £5.50/month reward (with terms).

3. M&S Bank - up to £185 in gift cards. £125 M&S gift card if you open their fee-free current account and an ongoing £5/month for 12 months.

4. First Direct - £125 if you open a 1st Current Account (via MSE link) and an extra £100 if you leave them.

5. Halifax - £75 if you open their Halifax Reward Current Account and then an ongoing £3/month reward (with terms).

6. TSB - no incentive at this moment in time.

7. HSBC - no incentive at this moment in time.

8. Nationwide - £100 if you're referred by an existing Nationwide customer.

9. Some people reporting that they're receiving an offer for switching current accounts to Tesco Bank - 10,000 clubcard points, 5,000 clubcard points, £100 Tesco gift card or £50 Tesco gift card. Seems to be people who have a Tesco credit card and/or Tesco savings account but no Tesco Bank current account. *Check all emails and mail through your letterbox*

More information about all these offers and clickable links in the 1st comment below.

Now, it’s important to note that these offers have some simple T&Cs that you must adhere to in order to get the incentives. For example, First Direct ask that you pay in £1000 before you get the incentive, Co-Op requires 4 x Direct Debits (DDs) to be transferred over plus £800 to be paid in and Halifax ask you to transfer 2 x active DDs and pay in £750 to get the £5/month; you DO NOT have to do this for the £100 switch incentive. M&S state that you must use their switching service to receive the incentive.

There are some important points to mention before I go ahead:

- to do the above, you DO NOT have to close your usual current account where you pay for your gas, electricity, water, phone, council tax bills etc. or where your salary is paid into. The idea is to create a ‘donor’ current account and use that account for the switching process; more information on this later.

- if you are on the electoral register, you will find that opening these accounts is A LOT easier. You can apply online/via phone for all of them and you can get an instant decision (in most cases) and access to your current accounts via online or telephone banking.

- there is MINIMAL hassle when switching current accounts. Banks are now able to switch your current account within 7 working days and they will do all the work. That means they will arrange all DDs and SOs to be transferred over, they will arrange for the closure of your old account and they will transfer over any remaining balance.

- this is NOT a time consuming commitment; all you need is a little bit of organisation. Opening a current account takes 10 minutes, making a phone call to switch current accounts takes 10 minutes, setting up a new payment and transferring £750/£800/£1000 into your new current account to fulfil the T&Cs takes 5 minutes (not applicable for M&S) and transferring that money out takes another 5 minutes. Finally, expect to check your account every few days which will add another 10 minutes or so. Each account should not take any longer than a couple of hours from start to finish.

- each time you open a current account, the bank will do a credit search and this MAY have an impact on your credit score (especially if you have too many searches within a short period of time). Consider any upcoming mortgage, credit card and loan applications and whether it’s a good idea to open these current accounts. You can get your credit report for free from Noddle. To date, my credit score has not been affected. Where possible, don’t apply for an overdraft and space out your applications to minimise the impact on your credit score. As long as you keep an eye on your score every month or so and spread your applications then you should not have any problems.

- First Direct and M&S occasionally offer increased switching rates of £125 via MSE. Keep an eye out for those offers.

- incentives are per customer and NOT per household.

- this is not going make you a millionaire overnight, but it certainly will allow you to earn a few hundred pounds over a few months with little effort.

- by switching current accounts, the banks currently CANNOT ask for your switching incentive back.

Now, on to the instructions:

1. Open a ‘donor’ account. Barclays, Halifax and Natwest have simple online current account applications. Once your account is open, stick £1+ in it. Wait for your debit card to arrive.

2. Open a current account with any of the banks offering a switch incentive. Read the T&Cs, funding requirements (if applicable) etc. Initiate the switch by giving the bank your ‘donor’ account details. Wait to receive the switching incentive. Once received, move on to the next bank (you won't have to repeat step 1 as you've now got a ‘donor’ account with the bank you just switched to).

3. Continue until you're fed up/have taken advantage of the offers. And that’s it!

So there you have it folks, a nice little earner.

Any questions then fire away; always here to help.

**A big thank you to everyone who comments when new incentives pop up, change etc.**

Top comments

I've exhausted most of these options and it has had a dramatic effect on my credit score!

Its gone from 5/5 on Noddle to 3/5.

I would advise anyone to consider your credit rating before switching banks so regularly.

Leave the first direct one until last. You won't want to leave them ..... even for an extra £100. The level of service they provide is worth much more than that,

karlie88

Valid point. Hence a detailed paragraph explaining this.



IMHO, that 'detailed paragraph' should be at the very start of this 'deal' and marked as a warning.

There are many people, particularly at this time of year, who will be drawn to the 'free money' without fully understanding the potential implications of the affect it could have on their credit score.

Original Poster

grimboj2

Please consult a financial advisor before switching current account many … Please consult a financial advisor before switching current account many times in succession There's a lot of "pub logic" in this thread that should all be taken with a pinch of salt.



Great advice.

HUKDer: I would like to take advantage of multiple switch incentives from this thread on HUKD.

Financial adviser: Great! I would advise to spread your applications out to minimise the impact on your credit score. Too much pub logic out there.

HUKDer: Erm, but that's already been advised in the opening post. Anything else you can advise?

Financial adviser: Let me have a read of the opening post. *Reads for a couple of minutes*. Nope, no further advice sir/madam.

HUKDer: Erm...thank you for your time? I guess...

Financial adviser: No problem! That'll be £150 please. I also accept M&S gift cards.

oO
1876 Comments

Original Poster

Yorkshire Bank: ybonline.co.uk/per…fer

Clydesdale Bank: cbonline.co.uk/per…fer

Co-Op Bank: http://www.co-operativebank.co.uk/currentaccounts/125switch

M&S Bank: bank.marksandspencer.com/ban…ew/

First Direct: http://www1.firstdirect.com/1/2/banking/switching-bank-accounts

TSB: http://www.tsb.co.uk/cashback-money-supermarket/

HSBC: http://www.hsbc.co.uk/1/2/current-accounts/bank-account

Halifax: halifax.co.uk/ban…nt/

TCB/Co-Op Bank: http://www.topcashback.co.uk/the-co-operative-bank-current-accounts/

Quidco/Co-Op Bank: http://www.quidco.com/co-op-bank-current-accounts/

TCB/Nationwide: topcashback.co.uk/sea…ts/?s=nationwide

Quidco:/Nationwide: http://www.quidco.com/search/?search=nationwide

Noddle free credit report: https://www.noddle.co.uk/

More information on registering on the electoral register here: aboutmyvote.co.uk/def…spx






Edited by: "karlie88" 22nd Jan 2016

Original Poster

Mods I have put this in deals as you need some money to transfer in to the account in order to be eligible for the switch incentives; thus not being a 'freebie'.

Of course, you can swiftly transfer the money back out.

Heat for the effort,will look into this tonight

I've exhausted most of these options and it has had a dramatic effect on my credit score!

Its gone from 5/5 on Noddle to 3/5.

I would advise anyone to consider your credit rating before switching banks so regularly.

Good effort karlie. Hopefully this will help a few people.

Original Poster

BMOLE

I've exhausted most of these options and it has had a dramatic effect on … I've exhausted most of these options and it has had a dramatic effect on my credit score!Its gone from 5/5 on Noddle to 3/5.I would advise anyone to consider your credit rating before switching banks so regularly.



As per the opening post.

Good work op - just need to find £1000 now so I can start transferring lol

Original Poster

Jeikobu88

Good work op - just need to find £1000 now so I can start transferring lol



You could do 2 x £500 etc.

might as well stay with Santander 123 account and earn 3% .

karlie88

As per the opening post.:{



Most people arent going to read a 2000 word essay but will read the first few comments of a post so thought it was worth highlighting again.

Heat for the free money and the effort but definitely not for everyone.


Edited by: "BMOLE" 10th Dec 2014

Original Poster

norville555

might as well stay with Santander 123 account and earn 3% .



You're comparing apples (switch incentives) with pears (high interest rate current accounts).

I have the Santander 123 account as my main account. DDs for bills etc all come from this account. Never switched from that.

I'm sorry, but no amount of financial incentive will induce me to potentially adversely affect my credit score.

Original Poster

HappyShopper

I'm sorry, but no amount of financial incentive will induce me to … I'm sorry, but no amount of financial incentive will induce me to potentially adversely affect my credit score.



Valid point. Hence a detailed paragraph explaining this.

Leave the first direct one until last. You won't want to leave them ..... even for an extra £100. The level of service they provide is worth much more than that,

karlie88

Valid point. Hence a detailed paragraph explaining this.



IMHO, that 'detailed paragraph' should be at the very start of this 'deal' and marked as a warning.

There are many people, particularly at this time of year, who will be drawn to the 'free money' without fully understanding the potential implications of the affect it could have on their credit score.

We have switched accounts twice, both times it was a complete mess, banks blaming each other, nobody would admit what had happened, hours on the phone constantly repeating the same stuff over and over.

Just saying its not always hassle free, even if they assure you it is.

Agree with comment about First Direct tho, always been very on the ball.

I just got my mortgage and don't need to borrow/lend for a while now (due to remortgage in 2 yrs) so I should be alright to do this, I'm sure in 2 years I can get my cred score back up again?? Or is that how it works...?

No such thing as a universal score. Credit agencies don't know your salary, etc, etc. It is nonsense. Banks have internal scoring procedures which vary. So you may score high for one bank and not another.

What will effect you, is not the nonsense score you get from your file. It will be the data. So multiple searches in 12 months. Makes lenders nervous. As will the average age of your accounts rapidly decreasing, no stability. Then the amount of accounts you have, can again make lenders nervous

What does it mean? I'd be careful if you need to switch mortgages or credit cards anytime soon. Also when current banks/cards check your file every 6 months or so. They may remove/decrease existing facilities based on credit file "data".

I have switched to First Direct whilst using a free months trial with Experian as I wanted to see if it impacted on my score or not and my credit score went down from 999 to 981 as a result of the searches taking place, so like previous people have mentioned this may impact your credit score and in my case it most definitely did!

MarcusD

I have switched to First Direct whilst using a free months trial with … I have switched to First Direct whilst using a free months trial with Experian as I wanted to see if it impacted on my score or not and my credit score went down from 999 to 981 as a result of the searches taking place, so like previous people have mentioned this may impact your credit score and in my case it most definitely did!



The score is a guide. It's a guide because they don't have your salary, work details, etc, etc. Big things on how a lender scores you. I wouldn't be so worried about your "score" but the data as detailed in my post above yours.


Hope that helps.

Gaminggirl

The score is a guide. It's a guide because they don't have your salary, … The score is a guide. It's a guide because they don't have your salary, work details, etc, etc. Big things on how a lender scores you. I wouldn't be so worried about your "score" but the data as detailed in my post above yours.Hope that helps.



Thanks for that And yes completely agree with your post as well

Does any one know if you can earn both from yorkshire and clydesale if you trasfer two separate accounts..thanks

Very, very tempted by this although I am incredibly lazy...

Original Poster

HappyShopper

IMHO, that 'detailed paragraph' should be at the very start of this … IMHO, that 'detailed paragraph' should be at the very start of this 'deal' and marked as a warning.There are many people, particularly at this time of year, who will be drawn to the 'free money' without fully understanding the potential implications of the affect it could have on their credit score.



IMHO people should read the whole post and do some basic research before embarking on this.

Original Poster

rambobambo

Does any one know if you can earn both from yorkshire and clydesale if … Does any one know if you can earn both from yorkshire and clydesale if you trasfer two separate accounts..thanks



Early days.Their switch incentives only launched 2 weeks ago.

I'm trying it out...

Good effort.

Thanks for the deal and the great effort in putting it together

Master G

Leave the first direct one until last. You won't want to leave them ..... … Leave the first direct one until last. You won't want to leave them ..... even for an extra £100. The level of service they provide is worth much more than that,



Agreed 100%!

HOT just for the effort!

HappyShopper

I'm sorry, but no amount of financial incentive will induce me to … I'm sorry, but no amount of financial incentive will induce me to potentially adversely affect my credit score.



Not only that, life is a long time and it's likely you may need one of these banks again in the future.

Also the hassle free switching is a pain, they'll transfer the direct debits but not your wages, surprisingly your HR department doesn't just accept a random letter demanding they change your bank details.

OK it should work smoothly, but it usually doesn't.

A lot of messing about with consequences for a few quid.

Be careful with standing orders, they copy them but don't remove the old ones, so there is a good chance you'll pay twice.

Drooler

Agreed 100%!



Well it is good to know that they seem to be far better than HSBC, their parent company, who could not organise a piddle up in a brewery.:(

It took over 30 minutes earlier today, just to activate a new Debit Card over the phone, just because they had a " glitch " on their online banking.

Oh and the new card has " contactless " built in, that I did not ask for, or want.

No choice, take it or go elsewhere.

Am I a new customer, nope been there longer than HSBC, since the good old Midland Bank ( RIP ).


I need to get on this! thanks.

I did this about 4 months ago.
Went from Halifax (generic current account) > 1st direct > co-op > back to halifax (current plus account).

I wasn't sure if it would affect my credit score (can't get on noddle to check as it appears to be down), but I already have my mortgage+credit card sorted. The switching was very easy (all DD's and payment details switched over fine), and I can't have spent more than 3 hours in total doing various things.. not a bad return per hour.

Barclaycard allows you to pay money into your bank account, would that count towards the £1000 pay in?

What about the active direct debits?

I think this is an excellent post as long as people are aware that if you are going to try and obtain credit in the near future lenders get nervous about someone who has recently opened a new account and when you are opening 5 this may raise suspicions.

Also it is likely to have an adverse effect on your credit rating as they will likely leave hard footprints on your credit file.

for people with the money theres an article about this on MoneySavingExpert where you not only get the bonuses but keep the maximum balance receiving the best interest rate on multiple current account. It involves Direct Debits and cycling a grand between the accounts each month.
Only really for people who are holding onto more than £20k in a "savings" account with rubbish interest and that is definitely not me!

Original Poster

mocmocamoc

Not only that, life is a long time and it's likely you may need one of … Not only that, life is a long time and it's likely you may need one of these banks again in the future.Also the hassle free switching is a pain, they'll transfer the direct debits but not your wages, surprisingly your HR department doesn't just accept a random letter demanding they change your bank details.OK it should work smoothly, but it usually doesn't.A lot of messing about with consequences for a few quid.Be careful with standing orders, they copy them but don't remove the old ones, so there is a good chance you'll pay twice.



Your post contains quite a lot of inaccurate information.

You can always re-apply to any of these banks, you're just not be eligible for their switch incentive.

As mentioned in the OP, there is no need to use your actual main current account where your salary is paid in etc.

£700 is hardly a few quid.

The old standing orders will be removed because they close your old current account.

mocmocamoc

Not only that, life is a long time and it's likely you may need one of … Not only that, life is a long time and it's likely you may need one of these banks again in the future.Also the hassle free switching is a pain, they'll transfer the direct debits but not your wages, surprisingly your HR department doesn't just accept a random letter demanding they change your bank details.OK it should work smoothly, but it usually doesn't.A lot of messing about with consequences for a few quid.Be careful with standing orders, they copy them but don't remove the old ones, so there is a good chance you'll pay twice.



Why would you need these banks in the future? They send you printed copies of your transactions from the last year or so (I exported mine to digital format as far back as possible also for personal backup).

Mine couldn't have gone smoother to be honest (switched 3 times). All direct debits, standing orders, and other payee details moved over and they must have sent my employer a letter/email as they automatically changed my account details too. I earned roughly £400 for about 3 hours work, not really "a few quid". They close the old account so you can't "pay twice".

I dislike banks just as much as anyone else, but feel this idea is taking the mick.
And the banks will cotton on to you soon enough, and perhaps start declining to open new accounts for you. After all, the banks do share a lot of information between themselves.
I`m sure some people will get away with it, but the banks will never lose. Watch them change the conditions, pull the offers, or slap a few extra % on everyone`s loan rates. Churning Credit Cards is nothing new, and most providers block it these days.
As someone who pays an awful lot for business banking, I find this idea rather sad.
Messing the banks around to earn a few quid just to spend on stuff you don't really need found on HUKD, and ruining your credit score in the process? MEGACOLD
Edited by: "czechoslovakia" 11th Dec 2014
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