If you’re keen to get an extra couple of hundred quid before Christmas, switching your bank account could be a fairly easy way to do it.
Santander is the latest bank to announce a bonus for new customers, who close an account at a rival and transfer their direct debits over.
They have launched a new £200 switch offer for current accounts, which could be tempting.
Martin Lewis recently called this kind of incentive a ‘legal bribe’, urging people to think about it ‘unless you’re so deliriously happy with your bank because it gives you a nice massage every single time you deal with it’.
Barclays, Lloyds, Nationwide, NatWest and First Direct have similar offers running, and Santander is latest to join the party.
The biggest bonus on offer is £400 for people switching to a Premier account with Barclays, but this would be a bit harder to do, as you need to pay in a minimum gross annual income of at least £75,000, or have £100,000 in savings, to qualify.
What do I need to do to switch bank accounts?
You could do it all yourself manually, but the process has been made simpler since 2013 with the Current Account Switch Service (Cass), which is a free service independent of any particular bank.
It works for all the major UK banks and building societies by transferring all upcoming payments due, and redirecting incoming payments.
To use it, you open your new current account and then ask them to handle the switch. The old account should be closed within seven days.
Who qualifies for the £200 from Santander?
Customers must be a UK resident switching from an external provider (not including cahoot or Cater Allen).
People will not qualify if anyone named on the new account held a Santander current account on January 1 2025 or has received a switch incentive from Santander before.
They need to pay in at least £1,500 to their new account via one or more payments, and set up at least two active household direct debits, such as council tax, utilities or broadband.
The swtich request must be made before the offer is withdrawn (a date for this has not yet been given), and complete the switch within 60 days.
Once eligibility has been confirmed, the £200 payment will be made directly into the Santander account within a month.
The bank is also offering a 12-month Kids Pass membership giving discounts on days out and restaurants, worth £39.99, when they open a Santander savings account or cash Isa and pay in at least £100.
Anthony Warrington, head of current accounts at Santander UK, said: ‘Christmas is fast approaching, and we know that this time of year can really stretch people’s finances, with shopping, social plans and rising household costs all adding up.’
Who else is offering cash to switch?
As well as Santander and Barclays, Lloyds is offering £200 to people switching their current account.
Meanwhile, Nationwide Building Society, NatWest and First Direct are offering £175 to switch.
Lloyds has also launched a ‘refer a friend’ deal, giving qualifying customers the chance to earn up to £250 by inviting friends or family who are not with Lloyds yet to open a bank account.
For each successful sign-up, both the existing customer and the new customer will receive £50, Lloyds said.
The referrer can earn cash on their first five referrals, potentially receiving up to £250.
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