Now that the kids are back to school and life’s calmed down after the crazy Summer we had in our house, I wanted to bring back my weekly ‘How to Make Money….’ post.  

This week’s post is all about switching Bank accounts which I’m not very familiar with (although I definitely should be) so I’ve asked the very clever Andy from Be Clever with your Cash to share his experience with you.

I want to tell you about a relationship that’s not working. No matter how much you put into it, you get nothing back. Despite years together you can’t really pinpoint anything positive. The only reason you’re still together is because that’s just how things are. You think there’s no real option but to stick with it, because, hey, they’re all the same in the end.

Sound familiar?

Well that’s how I used to feel about my bank. I was with my bank for 17 years. Nearly two decades of keeping my money in the same place – and getting nothing in return. It was essentially the longest relationship I’ve had, and also the most one-sided. I gave, they took.

But a few years ago, I discovered there were far more attractive alternatives out there where I would be rewarded for ditching my loveless coupling.

So I did. I switched bank. And I did it again. And again. And again. In total I’m more than £3,000 better off by moving bank than if I’d just stuck with my boring old Barclays account.

https://becleverwithyourcash.com/how-made-more-than-2300-from-bank-switching/

Sounds good right? If you’re with a bank that gives nothing back, you should think about switching too. Follow these simple tips and you could easily be hundreds better off.

Top reasons to switch

1. The switching bonus

Many banks offer a cash bonus for moving your account over. These change from month to month but it’s often possible to get as much as £125 from First Direct, Halifax, Co-op and TSB. Once you’ve got your bonus, usually within a few months, you can switch again. Easy money!

You generally need to set up a couple of Direct Debits from the account to get the bonus, and you might need to pay in a minimum amount each month.

2. Higher interest on savings

Most ISAs and other savings rates are appalling at the moment. But you can get as high as 5% from some banks in just a standard current account!

You’re often limited in how much money you can earn interest on, but if you’ve got up to a few thousand it’s well worth looking at.

3. Cashback on bills

Though they come with fees, both Santander and NatWest have accounts where you can earn up to 3% cashback on your household bills. A no-brainer.

4. Lower overdraft fees

Finally if you’re often in the red, you’ll know the fees can add up. You can reduce these extra charges, and maybe even avoid them completely by looking for lower fees and interest free overdrafts.

I regularly update a list of the latest offers from the main banks over at Be Clever With Your Cash, so take a look to see what you could get.

https://becleverwithyourcash.com/the-best-bank-switching-cashback-interest-offers/

How to switch

Most of the high street banks and building societies offer CASS. Nope, it’s nothing to do with the lovely Cass of this blog. It’s actually the Current Account Switching Service. It guarantees all money and payments to and from the account will be transferred within seven working days.

So all your Direct Debits, standing orders and other regular payments out will be automatically moved to the new account. Things like your wages will also be forwarded, though it’s worth letting your HR department know.

You’ll also have any other random payments moved over for three years – more than enough time to let people know you’ve changed account number and sort code.

Overall it’s a very simple process.

Why you might not want to switch

As good as this all sounds, you might want to stick with your current bank.

First it might not be as rubbish as my first account was. If it’s right for you, then it’s worth sticking with it.

You might even be required to stay with a bank if you have a product such as a mortgage with it.

Also, having a long term relationship with a bank can be good for your credit score. So if you’re looking to apply for something big you might be better waiting to switch until after you’ve got it. Plus each time you apply for a new current account you will be credit checked, so bear that in mind.

Finally, it’s usually only the cash bonuses which demand you go through the full switching process. For most of the other offers you can open up as many accounts as you want to take advantage. This is what I’ve done – I’ve 11 current accounts in total!

https://becleverwithyourcash.com/my-11-bank-accounts-and-why-ive-got-each-one/

Thanks for sharing that Andy.

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The post How a fresh start can be the easiest way to make some extra money…. appeared first on The Diary of a Frugal Family.