Martin Lewis explains how to secure 5% on your savings plus £200
Martin Lewis reveals Nationwide's £200 switching payout
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Martin Lewis, founder of Money Saving Expert, today tackled numerous issues on finances – including savings rates, which are gradually increasing in the current climate. In particular, Mr Lewis discussed what he called a “switching price war”, with banks now battling it out to entice new customers.
Consequently, there are several competitive offers being put forward by banks and building societies for those who make the switch.
Mr Lewis stressed this will need to be done via the official Current Account Switching Service (CASS), which is designed to be a simple and easy process switching a person over in seven working days.
Individuals will need to check the eligibility criteria for each account, as some may involve making switches to direct debits and moving money across.
However, there are some offers which are looking particularly worthwhile, and Mr Lewis urged people to “ditch and switch and get money for doing it”.
One deal which particularly stood out was Nationwide, as it has the top upfront cash offer.
The building society offers £200 to those who make the switch to a FlexPlus, FlexDirect or FlexAccount.
The FlexDirect account is one of the best on the market, offering five percent interest on a saver’s money and an interest-free arranged overdraft for the first 12 months.
Mr Lewis said: “You’d get that £200 in time for Christmas by the way.
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“The five percent interest is on up to £1,500 for a year, and that’s £75 if you’ve got enough to max it out.
“Many people get a one year zero percent overdraft. Hopefully you aren’t overdrawn, and only use it for one year.
“It does have a minimum monthly pay in, and you need to have £1,000 a month going in to it. Pay your salary in.”
However, a big competitor to this offer comes in the form of first direct, offering £175 for switchers.
It has an ongoing zero percent overdraft for many people who are eligible of £250, as well as a regular saver.
Two subsequent offers are also worthwhile investigating, however, they are ending very soon and so savers may want to act fast.
Martin explained: “Sister banks RBS and NatWest have reward accounts paying £175.
“If you pay a £2 per month fee, it gives you £5 a month back, so you are £3 up, which is £36 over the year. But you have to log in.”
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Of course, different accounts will be suitable for people depending on their needs and wants as a saver.
As a result, individuals are likely to want to investigate each account further before deciding whether it is right for them.
Martin concluded: “For those of you who have never switched, if you’re not happy with your bank account you can get really good rated service and be paid to switch.
“Why wouldn’t you?”
Martin Lewis is the Founder and Chair of MoneySavingExpert.com. To join the 13 million people who get his free Money Tips weekly email, go to www.moneysavingexpert.com/latesttip
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