Archive: MoneySavingExpert's Money Tips Email

News. Two free-cash bank switch deals pulled in the last week
Grab £175 FREE CASH while you can, only two deals left...

It's not you, it's them. The on-off relationship with bank switching seems to be moving into an off stage. Since last week's email, both Santander and TSB have pulled their free-cash bank switch offers. Now only two biggies remain - they're not saying they're due to end imminently, but closing dates can and do change quickly...

Switching's usually quick and easy. You need to go via the bank's 7-working-day switch service, which closes your old account and auto-moves your balance, standing orders & Direct Debits. Once done, any payments to your old account are auto-forwarded. You'll need to pass a not-too-harsh credit check. Full info in Best bank accounts, but in brief...

• Top all-round pick First Direct FREE £175 cash: TOP service, 0% overdraft & 7% regular saver. First Direct's 1st Account* pays switchers £175. It's been top or near-top in every service poll we've ever done and is currently rated 91% 'great', 4% 'poor'. You can also put £300/mth into a linked 1yr 7% regular saver (maxed out, it's £136 interest). Most also get a £250 0% overdraft, useful for those who occasionally dip into the red - in fact, say you're overdrawn by £425, the free switch cash pays some off, the rest's then interest-free.
  
  How to qualify for the free £175. It's all about the first 30 days here. Within that time, you must pay in a total of £1,000+ (can be in dribs and drabs, but you need to have the full amount in for at least 24 hours before it can be withdrawn). You must also log into its online site or app, and use your debit card 5+ times, as well as be switching 2+ Direct Debits or standing orders (basically it wants you to prove you'll be using it as a real account, not just doing it only for the cash).
  
  Who can get it? First Direct newbies who've not opened an HSBC account since 2017, nor are switching from HSBC.
  
  
• Good for perks Lloyds FREE £175 cash: Plus Disney+ & 6.25% regular savings. Club Lloyds switchers get £175 and can pick ONE of 12mths' Disney+ with ads, 6 cinema tix, Gourmet Society & Coffee Club membership or a magazine subscription. Its customer service is rated 59% 'great', 15% 'poor'. You can also put £400/mth into a linked 1yr fixed 6.25% regular saver (maxed out, it's £161 interest). The free-cash switchers' deal is currently scheduled to end on 30 July, but these things can change.
  
  - How to qualify for free cash & perks: Here you need to commit to having £2,000/mth being paid in (equivalent to a ~£29,000+/yr salary) or there's a £3/mth fee. The account you switch must have 3+ Direct Debits moved across.
  
  Who can get it? You can't have had switch cash from Lloyds, Halifax or Bank of Scotland since April 2020.
  
  
• They're the two big payers, but there are other deals. The Co-op Bank pays £75 upfront plus five months of £15/mth. Many existing Nationwide customers can get a free £200, but you must be switching in a non-Nationwide account.
  
  
• Can switching bank impact your ability to access credit? Switching bank can impact your short-term ability to get credit, both as it's a credit application and, more importantly, as lenders like evidence of stability. It usually isn't a big deal for most people, but if you've an imminent, important credit application due (eg, a mortgage within the next six months), it's probably best holding off until after. More in how switching banks impacts your credit.
  
  PS: Can you switch multiple times? Yes indeedy! See our make £1,000s by repeatedly switching banks guidance.

It's Meter Reading Week...

Energy bills FALL an average 7% on Monday. Here are our 6 need-to-knows to prepare and protect your pocket

This Monday (1 July), the new, lower Jul to Sept Energy Price Cap kicks in. It dictates the rates 85% of homes (in Eng, Scot & Wal) pay - that's pretty much everyone who isn't on a fix. So this is an important time to take a meter reading, check your Direct Debit amount and see if you can switch and save.

1. Pay by monthly Direct Debit? It's METER READING WEEK. With monthly Direct Debit, firms estimate your usage so the cost can be evened out over the year. With prices dropping right now, unless you've a WORKING smart meter, firms will estimate how much of your current usage is during the higher rate time, and how much is afterwards. So submitting a meter reading within a few days either side of the change (most let you backdate) means they've less wriggle room, and your bill will be more accurate. For belt 'n' braces, you can take a picture of the meter. See our firm-by-firm when & how to do a reading.

2. Do you have a non-smart electricity prepay meter? With most of these, it's topping up after the price change that tells the meter to change the rate. So run down your credit before 1 July, then top up ASAP on or after 1 July (even with a small amount). There's no need to do this with gas meters as they're different tech.

3. The % drop depends on where you live and what & how much you use. The Price Cap isn't a limit on the total paid, it limits the standing charge and unit rates. It varies by region and payment method (eg, Direct Debit, pay in receipt of bills and prepay), so use our CALCULATOR: What'll I pay from July? to find out yours. Yet to show the scale, here's the GB-wide Direct Debit averages for July (also see full region-by-region rates):
   
   - ELEC. Standing charge: 60.1p/day (now 60.1p). Unit rate: 22.4p/kWh (now 24.5p).
   - GAS. Standing charge: 31.4p/day (now 31.4p). Unit rate: 5.5p/kWh (now 6.0p).
   
   As the key mover is unit rates, higher users will have a proportionately bigger reduction than lower users. We've been campaigning for standing charge reductions - see which party leaders pledge to reduce standing charges.

4. Fixes are looking good value at the moment. Today's cheapest standalone FIX is 7% LOWER than the current Price Cap, so roughly the same as the July Price Cap. Yet current predictions are the Cap will rise again in October, possibly substantially (and stay roughly the same until April next year). So if the predictions play out, fixing at this rate will be a winner, particularly if you value price certainty. Use our Cheap Energy Club comparison to find the cheapest fixes for your use and area.
   
   There are other options too. There's the EDF Ensure tracker tariff, which is effectively the Price Cap with lower standing charges, or E.on Next, which is the Price Cap with lower unit rates. Plus there are Octopus' Agile and Tracker tariffs, which can be substantially cheaper but prices move frequently, and electric vehicle user tariffs too.

5. Are you too much in energy credit? It's the start of summer, so this is the point of the year when you should've used most of your energy credit. If you're over a month in credit right now, that's too much - see Martin's energy credit blog, which explains how it works and how to get it back. Eve emailed us her energy credit success: "I got in touch with my supplier Utility Warehouse, as I was £600 in credit. Asked for it to be refunded - no issues at all. Money was in my bank account within four days."
   
   Also as prices are moving, energy Direct Debits can move too, so use our tool to check your Direct Debit is about right. If it's too high, you can ask for it to be lowered.
   

6. Struggling to pay your bill? Help may be available. Energy hardship grants are available for some - speak to your supplier if you're struggling. See our full What to do if you're struggling to pay energy bills guide.