Consumer champion Martin Lewis is urging customers of major UK banks, including First Direct, Nationwide, and Santander, to act now and claim cash bonuses for switching accounts, which could be worth hundreds of pounds.
Substantial Payouts for Savvy Switchers
The urgent call to action came during a recent episode of The Martin Lewis Podcast, available on BBC Sounds and Apple Music. Listeners shared their success stories, with one named Vish detailing how he secured £400 from Barclays. Another listener reported an impressive haul of £750 through strategic account management.
Martin Lewis highlighted that while many lucrative offers have vanished from the market, a handful of banks are still actively paying new customers to join. "It pays to switch," Lewis stated. "There are about three bank accounts who are willing to pay people at the moment... Santander has got one, Nationwide has got one and first direct has got one. They are all paying at least £175."
Current Bank Switching Offers Available
The specific offers identified by MoneySavingExpert.com are clear-cut. Santander is currently offering £200 to switchers, while both Nationwide and First Direct are providing a £175 cash incentive. These payments are made to customers who move their current account using the official Current Account Switch Service, which typically requires setting up a minimum number of direct debits and funding the account.
The 'Mule Account' Strategy Explained
Explaining how one listener managed to secure a remarkable £750, Lewis detailed the concept of a 'mule account'. This involves using a secondary bank account specifically for the purpose of switching to capture multiple bonuses, while keeping your main day-to-day banking undisturbed.
"You set up a spare account, an account that you're not really intending to use that much," he explained. "You have a couple of direct debits going out from it... You pay money into it once you're switching because they have minimum switching requirements, so you pay that money in but you just take it out the next day."
This dedicated account then becomes the one you repeatedly switch between different banks to claim their welcome offers, a tactic that can significantly boost your earnings if you are organised and meet all the terms and conditions.
With banks regularly updating their promotions, Martin Lewis's advice underscores the importance of acting quickly to secure these limited-time cash bonuses before they are withdrawn.
