With Christmas around the corner and the cost of living higher than ever, a bit of extra cash would certainly help. This year, the average Brit expects to spend £600 on Christmas, according to IPA Insight. Why not let the banks help with your festive budget?
There's currently £805 of free cash up for grabs, just for switching bank accounts!
You don't need to change your main account – you can even switch a new current account from another bank, as long as you meet the criteria. We've put together a step-by-step guide to making the most of the bank switch offers.
Free cash for Christmas: a week-by-week guide
Week 1 (w/c 28 Oct): Open "throwaway" accounts (optional)
If you don't want to switch your main current account, you can open additional current accounts and immediately use them for switching. Any account you're planning to switch should be part of the Current Account Switch Service.
In this guide we're performing two switches at a time, so make sure you have two spare current accounts if you want to follow along.
Week 2 (w/c 4 Nov): Set up direct debits for switching
Banks normally require you to switch an account that has active direct debits. We'll start by switching to Club Lloyds which requires 3 active direct debits, and NatWest which pays £5/month cashback (£2/month account fee) if you have 2x £2 direct debits and log into the mobile app.
Tiny Direct Debit is the best place to quickly set up cheap direct debits for bank switching.
Week 3 (w/c 11 Nov): Start the first switches to Club Lloyds & NatWest
Once your direct debits are active (and ideally the first payments have succeeded, to be safe), you can start your switches to Club Lloyds and NatWest.
Club Lloyds: you need to pay in £2k/month (this can be cycled between accounts) or pay a £3/month fee.
NatWest: you need to pay in £1,250 and log into the mobile app after your switch completes.
Week 4 (w/c 18 Nov): First switches complete
Select the earliest possible switch date (it has to be at least 7 working days), which should mean the switches complete this week. Once your switches complete, and you've met all the other requirements, you can sit tight & wait for your switch bonuses.
Week 5 (w/c 25 Nov): First bonuses paid – £380 so far!
Club Lloyds will pay your bonus within 3 working days of your switch completing, and NatWest will pay within 7 days of meeting their requirements.
Once both have paid, you'll have earnt £380. As soon as you receive the bonuses, you can move onto the next step.
Week 6 (w/c 2 Dec): Start the second round of switches
With the first bonuses secured, we can move onto our second round. This time, we'll be switching to Nationwide for £175 and Co-op Bank. The Co-op offer is for "switch and stay", so you'll earn £75 just for switching, and an optional extra £75 if you stay for 3 months and meet their requirements.
Nationwide: you need to pay in £1k (this can be cycled between accounts, not from another Nationwide account or a Visa credit card) and switch 2 active direct debits.
Co-op: you need to pay in £1k (this can be cycled between accounts), switch 2 active direct debits, and make ten or transactions on your card within 30 days of your switch completing.
Week 7 (w/c 9 Dec): Second switches complete
If you selected the earliest switch date and met all the requirements, your second round of switches should complete this week!
Week 8 (w/c 16 Dec): Second Bonuses Paid – extra £250!
Just in time for your last-minute Christmas shopping!
Nationwide will pay your bonus within 10 days of meeting all their requirements, and Co-op will pay within 7 days of meeting their requirements.
Week 9 (w/c 23 Dec): Final switch to First Direct – bonus £175
At the time of writing, there's also a switch offer available with First Direct. We didn't include it in "free cash for Christmas" because they're slow to pay (20th of the month after you meet their criteria), so you can't cycle through switch bonuses quickly with this one. However, they offer a free £175 for switching, which would be a nice bonus to start the new year!
Ready to start switching?
Tiny Direct Debit is the easiest way to set up a cheap direct debit for bank switches. We process your direct debit as quickly as the banking system allows, so if you need to set up a quick direct debit, Tiny Direct Debit can help.
With the bank switch offers that are currently available, you can earn £805 in free cash in time for Christmas. Some of these offers are subject to withdrawal, so don't wait around – start today. Happy switching!
Notes
Whilst we've tried our best to ensure this post is up-to-date and accurate, please make sure you check the switch offer directly with the bank before you decide to switch, and double-check their eligibility criteria and T&Cs before you apply. This guide uses the offers that are available at the time of writing, but some may be withdrawn without notice.
Opening lots of bank accounts in quick succession could have an impact on your credit rating, and some lenders like to see evidence of longevity on your credit report, so we don't recommend doing this if you're planning to apply for an important loan (like a mortgage) in the next few months.
Make sure you use the Current Account Switch Service when switching banks for a sign-up bonus. This is offered by all the banks we list here, and the bank you're switching to (your new bank) should provide this.
And, to be clear - this is not financial advice!