Archive: MoneySavingExpert's Money Tips Email

Martin: At last. Firms fight for business again
1. New FREE £125 bank switch bribe
2.  A new longer, longest 0% debt shift card
3. New higher rate, top easy-access savings

In March, life changed. The pandemic hit, as did a financial crunch. And we're still all heavily impacted by the ongoing and knock-on medical, societal and economic results.

Yet there is a copper lining peeking through the clouds. One of the more prosaic pandemic problems (try saying that aloud three times) was a cooling of financial competition as banks, building societies and others focused on dealing with the most vulnerable.

For months, all free-cash bank-switching bonuses were pulled, and most new 'top deals' for savings or credit cards have been top by attrition - ie, the new best was only best because other better deals were withdrawn. That was frustrating at a time when many were desperate to bolster their finances.

Today it looks like the temperature is again increasing. We've three new money best buys, all top as they're better than the prior best. So if you've waited to sort your savings, bank account or credit card... kick into gear.

The big beasts of the banking world usually want your custom, and they're finally again willing to pay you a decent whack for it. So if you need some cash, grab it - the process is far easier and quicker than it used to be.

It takes 7 working days and the new bank moves all payments (incl direct debits), closes your old account, and ensures all payments you receive there are forwarded. If owt goes wrong, you're protected.

Though you must pass a not-too-harsh credit check, and you need to use the banks' official switching services to get the protection and perks. You'll also usually need 2+ active direct debits to be switched over. 

• New. Biggest upfront cash - HSBC: FREE £125 + linked 2.75% savings. Newbies to HSBC can switch to its Advance account*, and you'll get £125 roughly 30 days after the switch. It also then gives you access to its 2.75% fixed regular saver, where you can save up to £250/mth. Its customer service rating from our Aug 2020 poll is a decent 47% 'great'.
  
  - How do I qualify? Open the account and start a switch within 30 days. You'll need to pay in a min £1,750/mth, which is really just its way of saying "pay your salary in" (equiv to a min £25,600/yr). But I've a way round this below.
  
  To qualify as a newbie you also can't have held an HSBC account (or opened a First Direct or M&S Bank account - they're part of the same group) since 1 Jan 2017.
  
  
• RBS: FREE £100 + £3/mth back. RBS is now offering customers who switch accounts to it from elsewhere a free £100 on a couple of its accounts. The standout is RBS Reward which bizarrely charges a £2/mth fee but then pays most people £5/mth, so you're £3/mth up. Yet its customer service rating is only 35% 'great'.
  
  - How do I qualify? To get the bonus, you must pay in £1,500+ and log in to online/mobile banking by 30 Dec 2020. To grab the extra £3/mth on the Reward account, you must pay in £1,250/mth (equiv to a £17,000/yr salary) and log in monthly to its mobile app.
  
  You can qualify even if you have an existing RBS Reward account (though you need to be switching in an account from elsewhere), unless you've had switching cash from RBS or its sister banks NatWest and Ulster Bank since Oct 2017.
  
  
• New. Lloyds: FREE £100 + choice of freebies, eg, 12 movie rentals. Those switching accounts from other banks to Club Lloyds get £100, interest of up to 1.5% on balances up to £5,000, and a choice of four annual benefits:
  
  - 12 digital movie rentals (that would normally cost you c. £55)
  - OR six cinema tickets (that'd cost £30-65, depending on location)
  - OR a magazine subscription (that'd cost £35-45)
  - OR a Gourmet Society membership (that'd cost c. £40)
  
  Its customer service rating is a stronger 56% 'great'.
  
  - How do I qualify? Open an account and complete a switch by Mon 9 Nov. You need to pay in at least £1,500/mth (equiv to a £21,500/yr salary) - if not there's a £3/mth fee, so if you can't make the pay-in, probably best to avoid this account.
  
  You can qualify even if you have an existing Club Lloyds account provided you haven't had switching cash from Club Lloyds or Club Lloyds Platinum since April 2018.
  
  
• Looking for great customer service or got a strong APP-etite? The deals above are all about the free cash and perks - if you're looking for the top customer service ratings or highest rated apps, see our full Best Bank Accounts and Digital Banking guides. 

How to cheat the minimum pay-in to qualify. Say the pay-in is £1,500 but you only have £1,000 coming in. Pay in the £1,000, withdraw £500 specifically to an account at another bank (or in cash) and then pay it back in, and BINGO - you'd qualify with all the accounts above.

Though there is a chance those on much lower salaries may not be accepted in the first place.  

A balance transfer is a key weapon to cut costs as you get a new credit card that pays off debt on other cards - so you owe it instead, but it's interest-free, so your repayments clear the actual debt rather than serving the interest - savings you £100s or £1,000s.

As MoneySaver Keith told us: "After paying some large vet bills I eventually followed your advice and switched to a 0% balance transfer, going from paying over £400/mth interest to paying off over £400/mth. This will see me debt-free this time next year and ready to start saving for a good holiday. I can't thank you enough, stay safe."

And here too, there's some good news as the new TSB up to 29mth 0%* beats the prior longer 28mth deal. I explain which card to choose in the table below, but if unsure...  

- Go for the LOWEST fee in the 0% period you're SURE you can repay in. If unsure, play safe and go long. 
- Normally I'd say first go via our Balance Transfer Eligibility Calc to see which cards are likely to accept you. Sadly we've only data on one of our top 3 in there, but it's still a good precaution if acceptance could be an issue.

Always follow the Balance Transfer Golden Rules:

a) Never miss the min monthly repayment, or you could lose the 0%.
b) Clear the card (or shift again) before the 0% ends, or the rate rockets.
c) Don't spend/withdraw cash - it usually isn't at the cheap rate.
d) Balance-transfer within 60/90 days to get the 0% - check your card.
e) You can't balance-transfer between two cards from the same banking group with any of the cards above. 

Full step-by-step help, Q&A and more card options in our Best Balance Transfers (APR Examples) guide. 

Savings rates have been uglier than a blobfish with a cold this year - no surprise as UK interest rates are at a 300yr low. For the last few months, rates have been propped up by state-owned NS&I - which, as it's been trying to raise money, has offered rates far higher than all others.  

Now some are finally playing catch-up. So CHECK YOUR SAVINGS RATES NOW. If they're lower than the rates below and you're free to move, then ditch and switch.

All accounts below have full UK savings safety protection of up to £85k per person, per institution.

• New. Top easy-access savings - 1.2%. The top easy-access deals let you put money in and withdraw it whenever you want - so why earn less? Yesterday Skipton launched an easy-access account paying 1.2% AER (min £1 deposit) - this includes a 0.5% interest boost that will last for 12mths - I doubt the account will be around that long though.
  
  Update Thu pm: As we thought, the account wasn't around for that long. The new top payer is NS&I below.
  
  That's pipped NS&I's Income Bond which had been top of the table for months. It pays a straight 1.16% AER (min £500) though it's a bit more complex as deposits and withdrawals need to be in chunks of £500 or more, and the interest doesn't compound. It does have the advantage that it must give 2mths' notice to drop rates though - and as the Govt still wants to raise money that's unlikely.
  
  As with all easy-access accounts, the rates are variable, so keep your eye on them. More info and options in top easy-access savings.

• Fixes have also slightly improved - new top 1.25% 1yr fix. 
  
  Update Fri am: Since we wrote this, a new account has launched paying 1.3%. See Top Savings for the new top picks.
  
  If you're happy to lock money away without access, there's a new player at the top of the table. Secure Trust Bank pays 1.25% AER on its 1yr fix (min £1,000).
  
  Bigger savers can beat it via this Charter Savings Bank* 1.22% link. It's only avail via savings marketplaces, and this link takes you via Raisin which is one of them, though you still get Charter's full £85,000 savings safety protection.
  
  Via that link, Raisin gives newbies £5 to £50 cashback on £5,000+ savings, which for all amounts from that up to £85,000 (except £33,000-£40,000 bizarrely) beats Secure Trust if you factor in the cashback. Full info and options in Top Savings. 

• Can you UP the interest? A few things to check...
   
  - Low income? Get a 50% savings bonus. Check the Help to Save scheme to see if you qualify.
  - First-time buyer? Get a 25% boost on savings via a Lifetime ISA.
  - Get up to 2.75% interest by saving monthly. See Regular Savings.
  - Paying off debts and mortgages can be more lucrative. See Repay debt with savings? and Repay mortgage with savings?
  - Pay tax on savings? See if a cash ISA is more suitable.
  - Earn 2.02% on up to £1,000. See interest-paying bank accounts.
  - Not sure how much to put away? An array of autosaving apps can decide for you.

It's a new series of the week's must-watch financial briefing (if I say so myself, and I do regularly, so it must be right). We're live, so you set the agenda - tweet question suggestions to @MartinSLewis but you must use the show hashtag #MartinLewis. Plus I'll have the latest must-know news and we reveal the new "SHOULD I?" project. Do tune in or set the Betamax.

PS: Watch last week's 1hr financial ed special especially if you've teenage children (technically a different series, so I'm still claiming this week's the start).