Consumer champion Martin Lewis has urged Britons to check if they can secure hundreds of pounds in free cash simply by moving their bank account. The call to action follows a listener of his BBC podcast who successfully bagged over £750 by exploiting switching offers.
The Lucrative World of Bank Switching Bonuses
During a recent episode, the founder of MoneySavingExpert highlighted that several banks are currently offering substantial one-off payments to attract new customers. "It pays to switch," Lewis stated, confirming that while many deals have vanished, a handful of attractive incentives remain on the market.
He specifically pointed to offers from Santander, Nationwide, and first direct, all of which are paying at least £175 to switchers. Santander is offering £200, while both Nationwide and first direct provide a £175 cash bonus for those who move their main current account across.
How One Listener Pocketed Over £750
Lewis shared a detailed success story from a listener named Vish, who initially received £400 for switching to a Barclays Premier Account. Although that specific Barclays offer has now ended, it demonstrated the potential gains.
Another savvy saver detailed a more complex strategy, netting them a total of more than £750. They achieved this by sequentially switching a dedicated account between several banks to collect each bonus. They started with Starling, then moved to first direct for £175, switched to Lloyds for £200, hopped to Barclays for another £200, and finally landed at NatWest for £175 plus extra perks.
The 'Mule Account' Strategy Explained
Martin Lewis shed light on the technique, known as using a "mule account". This involves setting up a spare current account specifically for the purpose of switching, separate from your main day-to-day banking.
"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, because you normally need those to qualify. 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 account then acts as the 'mule' to move from one bank to another, securing the cash incentive each time without disrupting your primary finances. Lewis described the £750 haul as "good", but noted that some individuals have accumulated over £2,000 in total switching bonuses using such methods.
While offers change frequently, the core advice from Martin Lewis remains: it is well worth checking the market for bank switching deals, as they represent one of the simplest ways to earn a significant cash bonus with minimal effort.
