Archive: MoneySavingExpert's Money Tips Email

Bank Wars: Return of the big switch bribes

 - New. Free £175 + 2% bills cashback - now from RBS & NatWest
- New. Free £125 + 'great' service as First Direct strikes back
- Plus £180 in M&S vchs or £159 from Halifax

There's a new hope for switchers as the force of free cash bonuses has awakened after a lull. It all began two weeks ago in a galaxy not too far away when NatWest launched the biggest free cash combo in 18mths, as we told you then.

But competition has now hit hyperdrive as customer service master First Direct struck back last week by boosting its free cash bonus. And only yesterday, NatWest's sister bank RBS joined it with the same deal. So if your bank has moved to the dark side or you just want the freebies, now's a good time to join the rebellion and switch, as these may well be the deals you've been looking for (sorry if that's Obi-Wan too many Star Wars puns).

1. Switching is quick, easy & safe. It takes 7 working days & the new bank moves all payments (incl direct debits) & closes your old account. If anything goes wrong, you're protected (see Q&A below).
2. You must pass a not-too-harsh credit check.
3. You must use the banks' official switching services to get the perks.

• New. RBS & NatWest: Free £175 to switch & stay + 2% back on bills. Top cash bonus. RBS & NatWest now pay new switchers £125 on most accounts, plus £50 more if you're still with them in June 2020.
  
  - Top account if you're a bill-payer (incl joint bills accounts). The standouts are RBS Reward* or NatWest Reward* which, for a £2/mth fee, give 2% cashback on most bills (eg, energy, phone) paid by direct debit. On average it's worth £60/yr after the fee - but some earn £100+/yr. So all-in with the free cash you could bag £250+.
  
  - Top if you don't pay bills or don't want to pay a fee. Don't bother paying £2/mth - instead you can get the £175 but no cashback by switching to the fee-free RBS Select* or NatWest Select* accounts.
  
  - How do I qualify? For the £175, switch, pay in £1,500+ and log in online by 12 Jul (NatWest) or 2 Aug (RBS). Then use your debit card at least once a month. For the cashback, pay in at least £1,500/mth (which is just a way to make you pay in a salary of £21,500+/yr). See full NatWest/RBS help.
  
  
• New. First Direct: Free £125 + strong service + access to 5% reg saver. Best if service is key. New customers applying via this First Direct link* get £125 when they switch (only £100 if you go direct). It also scores superbly for service, with 90% of its customers rating it 'great' in our latest poll. Plus you get access to a 5% regular savings account that allows you to save up to £300/mth for 1yr. Many also get a £250 0% overdraft.
  
  How do I qualify? Pay in £1,000/mth (equiv to a £12,500+/yr salary) or there's a £10/mth fee after 6mths. Full info in our First Direct review. 
  
  
• Free £100 M&S voucher with NO min pay-in (+ £80 vch after 1yr if you pay in £1,250/mth). Good for M&S shoppers. Newbies who open an M&S Bank* account can get the vouchers and access to its 5% regular saver, which lets you save up to £250/mth for 1yr.
  
  - How do I qualify? To get the £100, within 3mths of opening you must switch incl 4+ active direct debits. For the £80, you must keep the direct debits active, register for online banking and statements, as well as making the min pay-in.
  
  - Got an M&S credit card? You get a £120 vch in 1yr instead of £80.
  
  
• Halifax: Free £50 upfront + £85 after 6mths + £2/mth (£159 in year one). Good for quick cash. Halifax pays newbies £50 before the switch completes, then the rest as above.
  
  - How do I qualify? To get it all, switch then pay in £1,500+/mth (equiv to a £21,500/yr salary). Plus, use your debit card at least once in the first 6mths, pay out 2+ direct debits each month, go paperless and remain in credit. Full info in our Halifax review.

Full eligibility on these accounts + more help in Best Bank Accounts.

Q. What are the best deals if I need an overdraft? The First Direct* deal above gives many a £250 0% overdraft - a useful buffer if you often slip into the red. 

Alternatively, Nationwide's FlexDirect* gives a year's 0% overdraft. There's no set limit - it depends on a credit check. If you get it, use the year to clear the overdraft, as after you're charged 50p/day if overdrawn by between £10 and your limit (£180ish/yr if permanently overdrawn). Get more help in our top overdrafts section.

Q. What about monthly fee accounts that give insurance? You can get up to £500 of mobile, travel and breakdown cover for £156/yr - a good deal IF you need the cover. Full info in Packaged Bank Accounts.

Q. Can I cheat the minimum pay-in? Usually, yes. Say the pay-in is £1,000 but you only have £500 coming in, pay in the £500, withdraw, then pay it back in, and BINGO. It must all come from an external account, however.

Q. What if something goes wrong with the switch? The bots behind the scenes sort it, so for at least 3yrs any money paid into the old account or wrongly earmarked to come out of it is transferred to the new one. If you're hit with charges due to a switch error that leads to a missed payment, this should be refunded by the new bank.

Q. I don't qualify for one of these accounts, what can I do? Sadly, 1m+ don't have a bank account. Yet if you've ID, you can get an account where there's no overdraft, called a basic bank account.