Martin Lewis has pointed bank account holders to some very exciting and lucrative deals, explaining how they could save hundreds of pounds by switching accounts. He also highlighted one account that is especially good for pensioners and older people.
Current Switching Offers
Speaking on his BBC podcast, the consumer champion urged people to shop around for better deals. He noted that now is the time to switch, as several banks offer cash bonuses. As of now, these include £220 from HSBC, £200 from First Direct, NatWest, or Barclays, and £180 from Santander.
One notable change is that switching bonuses are now available on certain packaged bank accounts, which rarely have such incentives.
Very Exciting Opportunity
Mr Lewis described this as a very exciting and lucrative opportunity. Packaged bank accounts are current accounts offering additional benefits like travel insurance or car breakdown cover for a monthly fee. He said: For those who would be buying those insurances any way, they can be a really good deal. Right now, we do have a few packaged bank accounts that are paying you to switch. So the amount they are paying you effectively covers that fee, so you are effectively getting the insurances for free.
By taking advantage of these deals, you could potentially receive £500 or £600 worth of insurance at no cost. The switching incentives often match or exceed a full year's monthly fee. For instance, worldwide family travel insurance typically costs £70 to £100 annually. Household mobile phone cover would usually cost £75 to £100 per policy, while UK and European breakdown cover could run to £50 to £100.
Available Packaged Account Deals
The Santander Edge Explorer offers a £180 payment upon switching. The account carries a £17 monthly fee, so the bonus covers the fee for an entire year. The Co-Op Bank Everyday Extra account has a £12 monthly fee and offers up to £300 for switching, covering the fee for more than two years. The Nationwide Flex Plus from Nationwide Building Society offers £175 to new switchers, covering the £18 monthly fee for nine months.
A key advantage of the Nationwide Flex Plus is its worldwide travel insurance with no age restriction, making it particularly appealing to older customers. One older couple wrote in to share their positive experience. They revealed they are both in their 70s and pay extra to cover health conditions, yet still consider it a great deal. They also pay £40 to upgrade their cruise cover to include cabin confinements and missed ports. This proved invaluable on a recent seven-day cruise where they missed two ports. The couple contacted the insurer and received £150 each for each missed port, with £600 arriving very quickly with no paperwork. They said: More than covered our additional premium. Highly recommend.
Mr Lewis was delighted, adding: They do work, and I tend to find they are especially good in two cases. Family with lots of teens and smart phones, because you get all the mobile phones in; or travel insurance cover for older couples and families, because often that can get really expensive. Suddenly the cost of the packaged bank account is the same as you'd pay just for the travel insurance, never mind that you get the mobile phone cover and the breakdown cover on top.
