Martin Lewis has urged UK households to switch banks and open a 'burner bank account' to secure a free £200. The financial expert states that people have made thousands from this simple change. Speaking on his podcast, Lewis noted that eight banks are currently paying switching rewards, making it an ideal time to make the move.
How the switching service works
The seven-day switching service automatically closes your old account and moves your money across. All direct debits and standing orders are also transferred automatically. Payments made to you will be redirected, though Lewis suggests notifying regular payers within a year to ensure correct details are recorded. The only items not switched are subscriptions, but services will notify you to update your card details.
Lewis's advice on maximizing profits
Lewis posted on X: "It is time to get a burner bank account to make serious money switching. EIGHT banks are paying £175+ to switchers right now & done right you can do it multiple times (ie make £1,000s)." He added on his podcast that the change is easy and very few people face difficulty. He claimed most big banks are part of the switching service.
Potential credit impact and warnings
Lewis noted that switching could have a short-term effect on your credit rating, but it will not last long. He warned Brits not to switch three to six months before a mortgage application or within three months of a balance transfer or major money movement.
Current switching deals available
- £220 from HSBC
- £200 from First Direct (ends July 15)
- £200 from Barclays
- £200 from Natwest
- £180 from Santander Edge (£3 monthly fee)
- £200 from Co-op Bank
- £175 from Nationwide FlexDirect
- £175 from Bank of Scotland
- £500 from HSBC Premier (requires earning over £100k a year)
- £250 from Natwest Premier (requires earning over £100k a year)
Many of these accounts have additional conditions and benefits. Brits should check they meet all requirements before making the switch.
