With the cost of living crisis continuing to place immense financial pressure on households, many are scrambling around to find extra cash for Christmas.
Fortunately, Money Saving Expert Martin Lewis has revealed a little trick that could help people get £200 for free. Speaking on The Martin Lewis Money Show Live's Christmas special on Tuesday, he said that an easy way of getting the extra cash is by simply switching bank accounts.
Mr Lewis told his audience that three banks are currently paying to receive customers with up to £200 cash. However, people should do it as soon as possible as there is some red tape to go through.
"This is for newbie bank account switchers," Mr Lewis said. "Now to do this, you must switch using their official switching service. There's a fairly easy credit check you'll have to pass too. It usually takes seven working days to switch, so in reality, that's nine or 10 days.
"They will close your old account for you. They will automatically shift over the direct debits and standing orders. Any payments will be auto-forwarded to your new account for three years. Clearly, let people who are paying your new account details as soon as you can."
Which banks are offering to pay?
Martin Lewis recommended the following bank account options:
- Nationwide Building Society FlexDirect - gives £200
- HSBC UK Advance - gives £200
- First Direct 1st account - gives £175
According to the MoneySavingExpert website: "The Current Account Switch Service (CASS) process is straightforward and takes just seven working days. Just open a new account with your chosen bank, then request a switch through it – you'll usually be asked during the application if you want to switch.
"Provided both banks are signed up to CASS (most are), the switching service will close your old account and move your money, direct debits and standing orders across. It'll also move payments meant to go into your old account into the new one, for instance, your salary.
"If something goes wrong, the bots behind the scenes sort it, so for at least three years any money paid into the old account or wrongly earmarked to come out of that account is transferred to the new one. Also, if you're hit with any charges due to an error in the switch, this should be refunded by the new bank."
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