Martin Lewis says three high street banks are paying free £550 to customers

Martin Lewis says three high street banks are paying free £550 to customers
-Credit: (Image: Reach Publishing Services Limited)


Martin Lewis says three banks are handing £500 straight into customers’ accounts. In an "update" in the latest Money Saving Expert newsletter, Mr Lewis - the BBC and ITV star - had his say over how to land a free cash payment for ditching your bank.

Mr Lewis wrote: "Now THREE banks pay a free £175+ to switch. Lloyds has started offering switchers £200 plus perks (eg, 12mths of Disney+) & 6.25% linked savings, BUT you must pay in £2,000 every month or there's a £3/mth fee.

It joins First Direct's free £175 deal, which has a 91% 'great' service rating, 7% linked savings and a £250 0% overdraft, and Nationwide's free £175, which has 6.5% linked savings - both of those just require you to pay in £1,000 once (and you can then withdraw)."

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The free £550 could be a handy windfall for Christmas. As well as the upfront switch cash, with Club Lloyds you can choose one of the rewards above each year. Do note there's a £3/month fee unless you pay in £2,000+ a month. You also get access to a linked regular saver paying 6.25% fixed interest for a year on up to £400/month (maxed out, it's £161/year interest).

MSE added: "First Direct's been top or near-top of every bank service poll we've ever run – most recently it scored 91% 'great'. Plus, newbies to First Direct's 1st Account can expect £175 to switch, a £250 0% overdraft (subject to a credit check), a linked regular saver paying 7% fixed for a year and near-perfect rates when spending overseas. Put all this together and it's a top all-round account."

Nationwide is offering a host of perks to newbies switching to its FlexDirect account. On top of the £175 free cash, there's 5% AER interest on current account balances up to £1,500 for a year (maxed out that's £75) and 1% cashback for 12 months up to £5/month.