MoneySavingExpert's Money Tips Email

New. Huge FREE £300 just by switching bank... now thankfully for employees AND the self employed

- We got Barclays to rewrite its terms to include self-employed & pensioners

- Ends Wed. Santander's FREE £240 bank switch offer (no min monthly pay-in)

- High Earner? You can now switch & get a FREE £600

Martin: "When I first heard about the new Barclays £300 deal, I thought great, then I read the terms and it frustated me. It's the best-paying deal this year, barring high-earner free cash. OK, you must stick with it for six months to get the full benefit, yet that's no biggie, as over half of it will be in your pocket by Christmas. Overall it's a strong offer for those who can get it. 

"Now to what was the problem. You need pay in a min £2,000/mth - that's not too unusual (though many best buys don't), but on Monday when the offer went live, its site said this must "be received via BACs from an employer" - effectively excluding those with only self-employed, pension, or other income. For me, that's a poor precedent. So we contacted it and, in a nutshell, it said that wasn't the case: "It does not matter if it is not from an 'employer'. Payments via other methods are also accepted."

"Yet the terms on its site still contradicted that. And I didn't want to put it to you unless they changed. The good news: after some to-ing and fro-ing, Barclays agreed and did that just before we sent this email. Now, thankfully it says salary payments must be received via BACs from an employer, state or private pension, or transfers from a UK business account (even if in same name). This should cover most who earn enough. 

"Though it does stop the 'gamifying' trick, where you pay money into another account then move it back to hit the minimum pay in. Anyway, I thought I'd let you know the background - now the team I'll run through the deals."

Banks partly judge profitability by a 'cross-sell' ratio - how many different products they can sell you. And if they get your current account custom, they've often a better chance of selling you more. That's one reason they're willing to (legally) bribe you to switch, especially in the run-up to Christmas. So grab the cash, but don't let it buy your loyalty... when picking cards, loans, savings, or investing, always focus on the best product for the job from across the market (use our guides).

Switching's usually quick & easy: To get the bonuses, you need to use the bank's seven-working-day switch service. It'll close your old account for you, move your money over, and shift Direct Debits & standing orders. Payments to the old account are auto-forwarded too. The vast majority find it a piece of cake, though you'll need to pass a not-too-harsh credit check. So let's first go through the standard accounts, then the high earners...

Over the last year, we've seen a rise in bigger incentives for those earning £75,000+ to sign up for special premier accounts. Yet the earnings limits tend to be stricter. If standard accounts want a minimum monthly pay-in it may be gameable (eg, for £2,000/mth, if you earn £1,800, just withdraw £200 each month and pay it back in). Here, they tend to focus on actual earnings and look more carefully. If you've variable monthly income but earn over the annual threshold, you should be fine.

Q. Can I switch multiple times to make £1,000s? Yes, and a decent minority (including here in MSE towers) do it. As Dawn emailed in June: "Dear MSE Team, I've switched a second current account several times and received around £1,500 in switching bonuses. I've got a bonus hotel stay still to use from a TSB switch too!"

The key technique is to set up a burner account (on top of your normal account) with a bank that doesn't pay a switching incentive - it's a burner as you don't plan to use it, just have it to switch from, making sure you meet the minimum criteria each time. For full pros and cons, see make £1,000s by repeatedly switching bank.

Q. Will switching bank affect my credit score? One extra search on your credit file shouldn't make much difference (many in a short time can). Though closing the old account can temporarily reduce your Credit Score from a credit reference agency (which is just a loose indication of how it thinks a typical lender may see you) for a month or two, as lenders like evidence of longevity. If you're imminently (within a couple of months) about to apply for a mortgage or an important, needed debt, avoid switching until after. More in how switching banks affects your credit.

Q. What about packaged bank accounts with insurance, any good? If you shell out each year for family travel insurance, breakdown cover, and mobile phone protection, a packaged bank account - where you pay a monthly fee and get lots of insurance products thrown in - could save you £100s. Our top current pick is Club Lloyds Silver* which gives switchers £200 cash, which effectively covers 17mths of its £11.50/mth fee. It includes European family travel insurance (max age 64), mobile cover for the account holder(s), and family UK breakdown cover. Full info in packaged bank accounts guide.

Q. Are subscriptions moved when you switch? Direct Debits and standing orders are moved for you. But recurring payments (eg, Netflix, Disney+ etc, where you give the long number on your debit card when you pay) do NOT switch - you must update these yourself. If you do forget, though, normally they'll just notify you that 'your payment card no longer works', so you can update it. It's not usually a biggie. See recurring payment help.

Q. I'm overdrawn, can I switch banks? Yes, and it's worth looking at, but focus on reducing the overdraft cost as it's the most expensive mainstream debts, with typical rates around 40% (nearly double standard high-street credit cards). If you're overdrawn, you can switch but the new bank may not offer an overdraft or match your current one. Luckily, most banks have a pre-apply overdraft eligibility checker to see if you'll get one. More help in our top overdraft accounts guide.

First Direct* is worth a note for smaller overdrafts. For example, if you're £450 overdrawn, the £210 clears some of that and the rest would be at 0% interest - a big help. Though you'll have to 'switch' the overdraft over yourself. This means when you switch, your old bank will ask you whether you can pay it off or want to keep it account open while you gradually clear it (it varies by bank). If you do keep it open, payments to the old account are unlikely to be forwarded to the new one, so you may need to arrange to move them yourself.

A few more of Martin's tips:

• If you have a larger overdraft, a specialist 0% money transfer credit card may let you pay a larger chunk into your bank.
• Aim to repay a fixed monthly amount. Eg, if £500 overdrawn, 'paying' £100 means being £400 overdrawn at month end.
• Doing a budget will help, as will going through a full money makeover to check what you're overpaying on.
• Consider moving Direct Debits to just before payday. The idea is you're overdrawn for less time, so costs are lower.
• Got savings? Use 'em to clear it. See Repay debt with savings?
• Struggling with all debt? Get help from Citizens Advice, National Debtline or StepChange. They can help you make a plan and can make a huge difference. For more, see our Debt crisis help guide.