He said you should check the terms and conditions closely
Martin Lewis has offered advice on managing your bank account and potentially earning many hundreds of pounds. The consumer champion provided general guidance that applies to customers of major banks, including Barclays, Lloyds, Halifax and Santander.
He issued the words of wisdom after a query on his BBC podcast regarding switching bank accounts. A listener contacted the programme explaining she currently banks with Lloyds but was interested in current account switching incentives from rival banks. Several banks are providing one-off bonuses if you transfer to them. These include Nationwide Building Society offering £175, Barclays providing £200 payments, Santander offering £180 and NatWest paying £200.
HSBC is also providing payments of £500 and First Direct is offering a £200 incentive. However, in this instance the listener said she was reluctant to leave Lloyds as she benefits from additional perks with her account, including cinema ticket vouchers.
Extra account perks
Club Lloyds customers can select from a range of Lifestyle Benefits. Additional perks available to customers include a Disney+ subscription, coffee and dining offers and vouchers for cinemas such as ODEON and Vue.
Her enquiry was whether she could create a secondary account simply by switching a handful of direct debits and fulfilling the other requirements, thereby claiming a switching incentive, while maintaining her Lloyds account as her primary bank account. In response, Mr Lewis had some encouraging news for the prospective switcher.
He said: “Everything you say is absolutely possible and is the textbook way for savvy money savers to do this.” However, he noted it requires “a little bit of planning” to take advantage of multiple switching incentives.
‘Make thousands of pounds’
Mr Lewis outlined that this strategy involves having a “mule account” or a “burner account” which you transfer between different providers to capitalise on these switching bonuses, potentially earning you many hundreds of pounds.
Mr Lewis said: “You’ve got to check the terms and conditions each time, but there are lots of people who do this and who make thousands of pounds.”
He continued by saying that many members of his Money Saving Expert team have “made decent money” by taking advantage of these promotions.
He recommended starting by opening a basic current account without any additional features or benefits, so you can transfer it easily when you want to claim a switching reward.
These switching deals typically require moving across two direct debits, so you’ll need to have these arranged in your burner account ready for transfer.
You may also need to pay in a minimum amount as part of your switch to be eligible for the incentive.

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