Money expert Martin Lewis has said seven major banks are offering customers up to £1,525 in free cash if they switch their current accounts in November and December.
He told viewers on his ITVX programme on Tuesday that the incentives range from £175 to £400 per account across several high street banks.
Mr Lewis said many of the bonuses will be paid before Christmas.
He noted that this timing makes the offers appealing for people seeking additional funds during the festive period.
He emphasised that the deals do not come with hidden catches.
Some banks do, however, require customers to pay in specific monthly amounts to qualify.
The switching process itself takes seven working days under the automatic switching service.
The system moves customers’ banking arrangements while closing their old accounts.
The largest single offer is from Barclays Premier at £400.
The deal is reserved for customers earning more than £75,000 a year or holding at least £100,000 with Barclays.
The MoneySavingExpert said many of the bonuses will be paid before Christmas
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PA“We’ve got the biggest ever deal we’ve seen at the moment,” Mr Lewis told the audience on the Barclays Premier incentive.
Customers who do not meet that threshold still have multiple options.
Santander is offering £200 to new switchers.
The Santander account includes a £3 monthly fee.
It provides one per cent cashback on bills up to £10 each month, offsetting the charge.
Barclays’ standard account also pays £200.
It carries a £5 monthly Blue Rewards fee, which customers may cancel after receiving the incentive.
Mr Lewis said the system handles the majority of the work
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PAClub Lloyds is offering £200.
To qualify, customers must deposit at least £2,000 each month.
First Direct requires monthly deposits of £1,000 for its £175 bonus.
Nationwide and NatWest also offer £175 payments.
Nationwide will pay bonuses by December 6.
NatWest will issue its payments by Boxing Day.
“First of all, you must use the seven working day Switch Service,” he told viewers, adding that the process typically takes 10 days as it operates over working days.
The service automatically transfers standing orders, Direct Debits and funds to the new account,
and closes the customer’s old account.
The only exception applies to subscription services paid through debit card details, such as Netflix or Disney Plus.
Customers need to update card information manually after their new account is active.
Mr Lewis said the system handles the majority of the work.
He also said customers can legally claim multiple switching bonuses.
He explained that some people have earned more than £1,000 by moving between banks.
Two members of his studio audience said they had successfully received several bonuses.
“There’s no such thing as a blacklist,” Mr Lewis told viewers.
He said that many people use a “mule account” set up specifically for switching between banks.
The practice involves creating a spare account for the sole purpose of moving from bank to bank.
It allows customers to collect incentives from various providers.
Some switchers use spreadsheets to track their activity.
MoneySavingExpert said frequent switching can affect credit worthiness
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ITV/THE MARTIN LEIWIS MONEY SHOW LIVE This helps ensure they meet the conditions of each bank and maximise their eligible bonuses.
Mr Lewis did issue one warning.
He said frequent switching can affect credit worthiness.
“The only consideration is that if you do a lot of switches in a short space of time, it can impact your credit worthiness,” he said.
He noted this could be a concern for those planning mortgage renewals or major borrowing.
Multiple applications appearing on a credit file in quick succession can affect scoring.
Prospective borrowers may therefore wish to limit switching activity.
For customers not preparing for significant financial commitments, the switching bonuses may offer a way to increase their bank balance before Christmas.
The incentives form part of wider competition among banks to attract new customers.