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

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With the new year kicking in, after a big-budget Christmas break, it’s time to focus on your money matters again.

The cost-of-living crisis and inflation are going nowhere so it’s essential to stay on top of your finances.

Here are some of our favourite stories from around personal finance this week to help you get your head around money.

30 easy ways to earn £1,000s in 2023

For anyone looking to make quick cash after a costly Christmas, Esther Shaw writes for The Sun, coming up with 30 ways to make cash in 2023. Here are some of our favourites from Esther’s list:

• Take part in surveys

Surveys are an easy way to make money in your breaks, typically taking 10-15 minutes to complete. Try free sites like Swagbucks i-Say and PopulusLive. With consistency and discipline, you could earn up to £100 a month.

• Have a wardrobe clear-out

The start of the year is a great time for a spring clean and instead of throwing out clothing, try listing them on sites like Vinted and Depop. You can earn a few £100s depending on the quantity and condition of your items. Look out for any seller-side fees on these sites as they might eat into your earnings.

• Earn rewards for exercising

Kill two birds with one stone when you earn as you walk! Cash in your steps with sites like Sweatcoin and earn almost £5 per 5,000 steps you take.

• Claim the Married Tax Allowance

More than two million couples miss out on claiming this allowance. This could reduce you (and your partner’s) tax bill by up to £252 in the current tax year ending April 5, 2023. To claim, the lower earner must usually have an income below the Personal Allowance of £12,570.

• Turn your car into a billboard

Sites such as CarQuids let you sign up to brand campaigns by advertising with vinyl stickers on your vehicle. You can earn up to £150 a month depending on your model, areas where you drive and park and the type of ad.

Divorce and money- everything you need to know

January, also known as ‘Divorce month’, often sees lawyers receiving the biggest number of splitting up queries each year. With a divorce comes discussions around the couple’s financial positions.

John Fitzsimons writes for MoneyWeek, all the things you need to know if you’re splitting up, including:

Mortgage: Your property will be the trickiest asset involved in the division. You can choose to sell the property and divide the proceeds or one partner can buy out the other. Discuss with your lender, who may help you out by offering payment holidays or other allowances.

Savings and Investments: Savings can be easily transferred from one account to another. However, with investment transfers, there will be fees and taxes you must be aware of, such as the Capital Gains Tax. For joint account holders, it is worth informing your bank to avoid any misuse of account funds.

Pensions: The most commonly overlooked aspect of a divorce, has several options for dividing pensions such as pensions offsetting, pensions sharing or attachment orders.

Divorces have additional costs like lawyer fees, filing fees, child arrangement needs that will need to be considered.

Credit card rates hit record highs as Britain goes on a borrowing binge

Lauren Almeida writes for The Telegraph as average credit card interest rates jump 4.2% from last year.

Credit purchases spiked before Christmas with consumers spending £1.2 billion in November, triple the amount spend in October, according to the Bank of England.

This increase came despite a fall of 0.4% in November retail sales with the cost-of-living surging.

With higher interest rates burdening their debt repayments, borrowers have lesser time before interest is charged. Experts are now urging borrowers to use cheaper options as they reach closer to the end of their interest-free periods.

Nationwide found that one-third of the purchases in 2022 were processed with credit cards or ‘buy now, pay later’ schemes.

Shoppers are left with little choice other than spending further on credit interests after low cash savings following the pandemic and high-Christmas budgets.

Photo by Gabrielle Henderson on Unsplash

The post Must-know money: 30 ways to earn, divorce and money, and Britain’s borrowing binge appeared first on Mouthy Money.

Expert deals finder Will Pointing suggests some ways of making cash from your extra space.

Space has never been at such a premium, particularly in the big cities in the UK. People are searching for limited space from spare rooms, a car-free garage or even an open parking space.

If you are fortunate to have space you don’t use, consider making some passive income and renting it out. Below are some ideas and information to help you make the plunge in to renting out your space.

Tips to get you started

Renting out space you’re not using is a a perfect way to earn fairly passive income, whether it’s to help pay your mortgage, save up for upgrades or set money aside for a holiday.

Before listing your spare space though, do a few key things to make it more marketable:

1. Take some high-end photographs. Try to use a proper camera, whether that be renting one for a day or finding a friend who has one. It’ll look much better than smartphone shots.
2. Write up a clear sales-y description. Being able to properly describe what you’re selling will make a huge difference as it will be more searchable and also easier for a customer to understand.
3. Add a competitive price. Pricing way above what other similar sellers are offering will make your space unaffordable. Do your research and price in the right way.

Here are four great spaces you can rent out, and how to go about it.

1. Rent out your spare room with Spareroom

Some 34.8% of people in the UK are renting according to a recent survey by Statista. So help them out and rent out your spare room.

Worried about paying tax? No need, the Rent a Room scheme is a government incentive that allows landlords and live-in landlords to earn £7,500 of tax-free income every year, by letting out a spare furnished room in their property.

There are a few sites to list your spare room, the largest and most renowned being spareroom. Spareroom is the UK’s busiest flat share site with over eight million registered users that will help you find a new flatmate fast, with the option of posting a free ad.

You can expect lots of enquires to filter out but hopefully you’ll find your next ideal flatmate.

Alternatives to Spareroom include Badi, Ideal Flatmate or Kangaroom.

2. Host your place on Airbnb

If you can’t quite deal with someone living with you long term, try hosting your home by renting out a room on Airbnb. Hosting can help you turn your extra space into extra income.

Enjoy the flexibility of being your own boss, earn extra money, and make lifelong friends through hosting. Hosting with Airbnb for the first time? Earn £7 as a sign on bonus.

Rest assured, in the rare event your property is damaged during someone staying at your place, you may be protected with up to $1,000,000 USD primary liability insurance.

Alternatives to AirBnB include Homestay, Plum Guide or Vrbo.

3. Rent out your spare garage on Stashbee

We live in an era where people have more belongings than they’ve ever had before. People have enormous amounts of literal baggage.

If you have a garage empty and collecting dust, it could be making money for you as storage for others instead.

Easy-to-use platform Stashbee connects individuals who have spare space (such as Garages) with those who need it. It is essentially Airbnb but for storage. People will put their things in your spare space and you’ll collect a fee.

In some ways its better than AirBnB because you don’t even have to deal with people in your house on a regular basis.  

At the time of writing when you join Stashbee you’ll benefit from a £50 joining incentive.

Alternatives to Stashbee include Store at My House or Storemates.

4. Rent out your parking space on YourParkingSpace

Do you live near a popular area, like a train station or shopping centre? Regular drivers into your area may prefer to rent your parking space than use a money-guzzling parking meter.

Depending on your area, you could net up to £200 a month, just for letting somebody park in your drive or garage.

The YourParkingSpace platform connects drivers with over 350,000 privately owned and commercially operated parking spaces across the UK, available to book hourly, daily, or monthly basis. Why not list your space for free and see what you can earn.

Other providers include Justpark.com, Parklet.co.uk or Parkonmydrive.com.

Photo by Ketut Subiyanto from Pexels

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Stuck at home and bored during lockdown? Spending too much money on Amazon knick-knacks you don’t need? Expert deal finder Will Pointing says this could be the best time to start an online side hustle

We’re in our fifth month of lockdown in the last 12 months. Millions are stuck at home and many are unable to work, or pick up extra cash that they might normally earn outside the home.

But it is possible to make extra money on top of your day job salary or furlough money, all in the comfort of your own home.

Here are seven top home side hustles you can try to keep your bank balance healthy while we go through yet another lockdown.

1. Flip your old items

Most of us have so much clutter around. Households typically have hundreds – or even thousands – of pounds of stuff they don’t want, need or even use.

Now is a great time to list and sell them online. Selling clothes with sites like Vinted and Depop is very straightforward. For other items such as old electronics or books, check out free listings websites like Facebook Marketplace and the app Next Door. Still no luck? Try eBay, although be aware it does charge fees.

Remember to spend time on good photos and an accurate description that highlights the benefits of the item.

2. Take part in online focus groups

Online focus groups (via Zoom) are a great way to earn money. Normally, you have to apply via email for the focus group, spending five minutes answering their suitability questions. Once completed, there is a good chance of being selected.

Start with trying a Google search for “focus groups” and add your area to find sessions near you. Once selected, just turn up and be chatty and opinionated. Focus groups can earn between £40 and £200 depending on how specific the requirements are and whether you meet them.

3. Start blogging

Blogging can be a lucrative way to make money, but do not expect instant success. Firstly, pick a niche (from cooking to films, travel or even personal finance!), pick a URL, build a site and start writing content. Good platforms for building a blog include WordPress, Squarespace and Wix, but these will have different costs associated with them so choose carefully.

How can you make money? Through sponsored posts, affiliate marketing (being rewarded a commission by selling another company’s product/service) or charging advertising tenancies (banner advertisements).

4. Rent out your spare spaces

Got lots of spare space at home? Consider renting it out. This can range from a renting out a spare parking space, an empty garage or a deserted storage room.

If you don’t mind people staying with you, consider also renting your spare room out. Another big idea is adding your apartment or house as a listing on a TV filming location websites such as ukfilmlocation.com or film-locations.co.uk.  You can make anywhere between £500 and several thousands of pounds, by allowing a film crew to use your place as a filming location, from films, TV commercials to music videos.

Remember though during the current lockdown some of these activities may carry restrictions. You should at least make sure your living space is secure if people are coming in from elsewhere, and that the activity is in accordance with the current laws.

5. Write and self-publish an eBook

You may find yourself with more time on your hands in lockdown, so this might be the best moment to finally write a book you have always thought about.

If you’re articulate with your words, you can try writing and self-publishing an online book. Take advantage of free sites such as Amazon Kindle Direct Publishing (KDP) to get started. These free e-publishing sites allow you to publish your eBook without paying a single penny to a publisher.

6. Host an online event

Since the pandemic, people may be social distancing, but they still want social activities to pass the time at home. Bring people together with your own online event and charge for it.

This could range from a comedy event, a cooking course, a yoga class or even an online magic show. Platforms you can advertise on include Designmynight and Airbnb Experience to name a few.

They’re also very easy to set up – just launch the event on Zoom and send out the event details to the paid attendees. Just be aware of any costs a video meeting platform like Zoom might have, and restrictions (such as time) they might have on the free versions.

7. Become an Online Tutor

Do you have a talent for English, maths, business or any other academic field? Even if you are not an ‘expert’ in your field, there is the opportunity to cover topics at an entry-level or as part of an introductory curriculum to children or adults studying the subject.

Google “online tutor in your area” to find a company that might need tutors to cover specific areas.

Do you have any side hustles that have worked for you? Please share below. Hopefully the above ideas get you thinking about how you can make money from a new side hustle. If you take a leap of faith and start earning, this could become your main source of income in the future.

Photo by Taryn Elliott from Pexels

The post Year of the side hustle: seven ways to earn money at home during lockdown appeared first on Mouthy Money.