Martin Lewis has highlighted a new £300 bank switching offer after Barclays changed its eligibility wording following concerns raised by MoneySavingExpert (MSE.com).
In the latest edition of its weekly newsletter, the consumer website said the deal is the highest-paying standard bank-switching offer currently available, with customers able to receive £150 initially followed by five further payments of £30.
However, MoneySavingExpert said it initially held back from recommending the offer after spotting wording which appeared to mean the £2,000 monthly income requirement had to be met through payments from an employer. That would effectively have prevented people relying solely on self-employed earnings, pension income or other sources from qualifying.
Barclays amends terms after MSE contact
The team at MoneySavingExpert contacted Barclays about the wording and said the bank confirmed the payment did not have to come from an employer. Barclays subsequently amended its published terms to make it clear that qualifying payments can include those from an employer, a state or private pension, or transfers from a UK business account, including one held in the customer's own name.
Martin said: “When I first heard about the new Barclays £300 deal, I thought great, then I read the terms and it frustrated me.” He described it as the “best-paying deal this year” outside offers aimed specifically at higher earners, adding that more than half of the potential £300 would be paid by Christmas for people who qualify.
How the £300 Barclays switching deal works
The £300 is split into two parts rather than being paid as one lump sum. Customers can receive an initial £150 for switching to the standard Barclays Bank Account and moving at least three Direct Debits. They can then receive £30 a month for five months by making at least 10 debit card payments each month, taking the total potential payment to £300.
Customers must have at least £2,000 a month in qualifying payments going into the account for six months. There is no minimum monthly payment requirement after that period. The account itself does not charge a monthly fee.
MoneySavingExpert estimates that someone switching now and meeting the conditions could receive the initial £150 by November 25. People cannot qualify if they have previously received a Barclays switching bonus or held an open Barclays current account on October 1. Joint accounts cannot be switched under the offer.
Customers can also choose to join Barclays Blue Rewards for £5 a month, which currently includes Apple TV. Anyone wanting to keep the benefit after six months would need to continue paying at least £800 a month into their account and register for digital banking.
What happens when you switch banks?
The offer requires customers to use the Current Account Switch Service (CASS), which normally completes a switch within seven working days. The old account is closed and the balance, Direct Debits and standing orders are transferred to the new account, while payments sent to the old account are redirected.
MoneySavingExpert warns that recurring card payments, such as subscriptions paid using debit card details rather than Direct Debit, are not automatically transferred and need to be updated separately. People planning to apply for a mortgage or other important borrowing soon may also want to consider the timing of a switch. MSE.com said a bank switch can involve a credit search and closing an established account can temporarily affect the credit score shown by a credit reference agency.
You can read the full details on the switching offer on MSE.com.
