Bank account switching could be a great way to make some extra cash. And we could all do with a bit more cash right now!

So today I’m featuring an easy method for generating handy lump sums by taking advantage of the incentives being offered by some UK banks.

The banks are currently battling one another for your custom. And they are offering some enticing cash bonuses (sometimes other freebies/benefits as well) to get you to sign up. 

I have seen offers of up to £250, which is certainly not to be sneezed at. What’s more, you can repeat the process multiple times, potentially making thousands of pounds.

What bank account switching involves

Making money this way simply involves switching your current bank account to a different provider that is offering an incentive for doing so. 

An example at the time of writing is First Direct, which is offering £175 in free cash (and a range of other benefits including a £250 0% overdraft).

Other banks that have offered bank account switching bonuses recently (and may still be) include TSB, HSBC, Halifax, Lloyds, Nationwide, NatWest, Santander, RBS, Co-op Bank, and Virgin Money.

You might think bank account switching is a stressful hassle. But the good news is that most switches nowadays can be managed by the Current Account Switching Service (CASS), which makes the process quick and easy. It generally takes no longer than seven days.

CASS automatically ensures all direct debits and standing orders are switched to your new account. It also ensures that any incoming payments are automatically re-routed to it.

• Though note that continuous payment authorities, sometimes used for subscriptions and loan repayments, are NOT covered by CASS. These recurring payments are set up by providing your credit/debit card details. If you have any of these you will need to switch them manually yourself.

Once your application has gone through and your new account been opened, your bank account switching bonus will be credited to it. This can take as little as 10 days, though depending on eligibility requirements (see below) it may take longer.

More from Nick Daws on Mouthy Money

Eligibility requirements

The above are the bare bones of this method, but there are also certain requirements you’ll need to meet to qualify for switching bonuses. 

Requirements vary between banks. But typically they will want you to deposit a certain amount of cash into your new account, either as a single sum or over a period such as three months. Many banks also require you to have at least two active direct debits on the account in question.

Another common requirement is that you haven’t held an account with the bank you’re switching to previously, at least within a certain period. So with First Direct (mentioned above) you can’t ever have had ANY account with them (e.g. a current account, credit card or mortgage). Also, you can’t have opened a current account with their sister bank HSBC since January 2018. 

• If for whatever reason you don’t want to change your current account, you can still benefit from this method by first setting up a ‘burner’ account with a bank that doesn’t typically offer switching bonuses. You can then use this to switch to a bonus-paying account, as long as you can meet their eligibility requirements.

Finding bank account switching offers

Bank account switching offers come and go quite frequently. The best way to keep track of them is through specialist financial websites which are regularly updated. 

I recommend this page on the popular Money Saving Expert website which lists all the best current bank switching offers. It reveals the bonuses and other freebies that are on offer and eligibility requirements, e.g. how long it must be since you last had an account with them.

Rinse and repeat!

Of course, each switch only generates one bonus. Having done it once, however, there is no reason you can’t do it again, and again…

Just be aware that applying for a new bank account will inevitably show up on your credit record and if you do it multiple times could affect your credit score.

So it may be advisable to delay if you are currently doing something that requires a good credit score, e.g. applying for a mortgage. 

In any event, it’s probably best to apply this strategy over a longer period, rather than try to cram in every offer over just a few months.

Annie’s story

My sister Annie is a serial switcher and has made hundreds of pounds from switching over the last few years. She was kind enough to send me her story (and advice), which I have reproduced (slightly edited) below…

I’ve changed bank accounts three times in the last five years, having stayed with the same bank for the previous thirty! 

Initially I was lured by the prospect of a hefty £250 to move to Virgin Money. Then I switched again to get bonuses of £150, first with Nationwide, then more recently with NatWest. 

The process is straightforward, but you have to follow the instructions to the letter. Most importantly, I found it’s nearly always the case that you can’t have been a previous customer of the bank offering the bonus, or at least not in the last five years. Secondly, you always have to use the dedicated ‘Switch’ service. And thirdly, you generally have to pay in a minimum amount each month, including a couple of direct debits. 

Like most people, I worried that all my standing orders and direct debits would get lost or messed up in the move, but the system really does operate flawlessly. It’s a very easy way to make some money! Just read the small print. Also you will probably have to download the app for your new bank in order to qualify, but I’ve found that very useful anyway. I’m currently eyeing up another move to First Direct. My only problem going forward is that I am in danger of running out of banks to switch to!

Many thanks to Annie for sharing her story.

Closing thoughts

Switching bank accounts clearly isn’t going to make anyone rich. But in these times of financial strain, the extra money from bonuses can come in very useful indeed.

And with CASS making the whole process simple and straightforward, there really is no reason you can’t make hundreds or even thousands of pounds by this method in the months and years ahead.

As always, if you have any comments about this article, please do leave them below.

Nick Daws writes for Pounds and Sense, a UK personal finance blog aimed especially (though not exclusively) at over-fifties.

Photo by Avery Evans on Unsplash

The post How to make money through bank account switching appeared first on Mouthy Money.

Are you looking for a fun and potentially profitable hobby? If your options for side hustles are limited, maybe entering competitions, or comping, is a good option.

It is something you can do from home and all you need is a smartphone or computer. Here’s a beginner’s guide to start comping.

There are many serious compers who win big prizes on a regular basis. In fact, an old colleague of mine, Martin Saiz, was winning a holiday almost every year at the height of his comping efforts.

His last big win was 10 nights in the Philippines, which he gave to his daughter for her honeymoon. He has also had trips to Moscow, Italy, Switzerland, France, Ireland and in the UK. One particularly exciting win was a €9000 weekend on a giant yacht in Ibiza, where his name was picked out live on Facebook.

Di Coke, also known as Super Lucky Di, says that she has won an average of £12,000 a year in prizes since she took up comping in 1997.

Put in regular effort

If you want to be successful as a comper you need to put in regular effort, rather than just entering the occasional competition you come across. Set yourself a specific amount of time to enter competitions.

Martin spends around 60-90 minutes each evening after work, but you could allot your morning bus or train ride to start comping, use your lunch break, or get up half an hour early and to enter whilst you drink your morning coffee. 

If you systematically enter as many competitions as you can as often as possible, you are much more likely to win regular prizes than someone who just goes in for the odd comp.

Before you begin, Di suggests that you set up a special email address, as entering competitions definitely means more spam. Don’t forget to check your inbox daily in case you have won, including your junk mail box. 

How to find competitions

Fortunately, these days it is easy to find competitions. There are reputable comping sites that have hundreds of opportunities every day, as well as competition forums where members share competitions and draws they have come across.

Here are some of the best places:

• Loquax 
• Super Lucky Di
• MSE competitions forum 
• Latest Deals UK competitions
• HotdealsUK competitions

Social media platforms can be a good source of competitions, especially Twitter, Facebook and Instagram. Search for the hashtags #win #competition #competitiontime, etc.  Radio shows and their websites also feature regular competitions, such as Heart, as do magazines like Marie Claire and Prima.

Super Lucky Di has a great list of places to find competitions here.

Beware of scams and read the Ts&Cs

Super Lucky Di says that it is best to stick to competitions run by brands that you trust. She says to beware of competitions or draws that require you to hand over too much personal information. Some unscrupulous sites will sell this on and you are likely to be bombarded with spam emails and phone calls. 

The Money Saving Expert forum has a thread where scam competitions are posted. They warn against competitions that say you are a winner but demand money for admin fees, etc.

If you win a genuine competition you will never be asked to pay to get your prize.

Make the best use of your time

It is easy to get swept up when you start comping, meaning that you enter everything in sight. However, to make best use of your time, it makes sense to only enter competitions with prizes you actually want to win. It is pointless taking the time and effort to win something you will have no use for.

Having said that, Martin tells me he used to enter everything, and once won a breast pump! (His kids were grown up at this point…)

Read the rules and follow the instructions, including the terms and conditions, and any time limits on the prize. It would be disappointing to win tickets to an event for a day you aren’t available.

Martin also suggests using autofill whenever you can, as it is a real time saver.

Find low entry competitions

Martin recommends entering competitions with tie-breakers, such as completing a sentence, writing a rhyme or a slogan, as you are statistically more likely to win.

People assume they won’t come up with anything funny or clever enough so don’t bother and entry numbers are lower. He advises that you keep tie-breakers short and to the point, as the judges will need to read through many entries and you want yours to stand out. 

The odds of winning any competition where extra effort is required are better than easy entry comps and draws. Many people can’t be bothered.

Increasingly, competitions run on social media channels request that you submit a photo along with your entry, and the odds can be better on those.

Competitions that are run locally, in newspapers, shopping centres, on local radio and in newsletters can give you good odds of winning, since there will be fewer entries than for national comps.

However, sometimes the same competition is run across all of the newspapers and radio stations within a group, so your chances won’t be as high.

Consider purchase-necessary comps

Di Coke recommends that you consider purchase-necessary competitions as well as free-to-enter ones. She says, “Over 25 years I’ve won thousands of pounds of prizes in purchase comps, including a car and several holidays – the biggest being my 2021 win of £15,000 plus £10,000 of shares in Brewdog! 

“In 2022 my biggest purchase necessary wins included an LG tech bundle worth over £2,500, a £500 Easyjet voucher with Walkers – £1,000 from a Lu biscuits standard rate text entry prize draw at the Co-op, and a £100 voucher with Glade Candles at Wilko.”

Di recommends that you take a photo of your receipt alongside the product in case you lose it. You may need it to validate your win.

Text competitions with an entry fee often have a low number of entries, so if you really want the prize it is worth entering.

Stay motivated

Obviously the biggest way to keep motivated with your comping hobby is to win regularly! If you keep a list of the prizes you have received you can see if your efforts have been worthwhile.

It’s also fun to join comping groups and forums for hints and tips, to make friends and to see what others have won. Di Coke’s Facebook group is Lucky Learners.

Are you start comping this year? Or have you already had some good wins?

Photo by Japheth Mast on Unsplash

The post How to start comping and win big appeared first on Mouthy Money.