How you can make up to £700 from switching accounts

Ruth Jackson's picture

A few years ago I pocketed £300 in three months from jumping current accounts. I was pretty proud of myself at the time and have bragged about it considerably since.

But if I’m honest, switching current accounts twice in three months was quite a bit of hassle and I had promised myself that I wouldn’t switch any more. For example, no one in my family ever dares to transfer me money without checking my details at least six times and I have pin number overload.

But in the past couple of weeks the banks have started tempting me again. A quick tally shows that I could now make up to £700 doing the same thing.

That’s a lot of money for doing relatively little and is sorely tempting. To get it here’s what I would have to do.

Abandon my current bank account and switch to the Co-operative Bank. If I move all my direct debits and standing orders and pay £800 a month into the account I will receive £200. I’d move to this bank first as that is a very good deal - £100 more than what anyone else is offering – and I’m sure the Co-op will see sense and withdraw the deal pretty quickly.

Then after three months once the £200 is safely in my account I’d ditch the Co-op in favour of First Direct. First Direct will give me £100 if I again move all my direct debits and standing orders and pay £1,500 a month into the account. 

Read Johanna Gornitzki's blog; How i got an 8% savings rate

Right that’s £300 in the bag. Now it’s time for one final move. I would now need to inform First Direct that I am not happy with the bank and want to move. It then gives me another £100 for leaving as part of its ‘satisfaction guarantee’. This deal has been running for years so I’m pretty confident it would still be around in a few months after I’ve switched to the Co-op. 

I then switch to Santander that pays me another £100 as long as I, once again, move all my direct debits and standing orders. This time I would need to pay £1,000 a month into the account. 

And that’s it, I could be £500 richer in just a few short months. Or possibly even richer….

There is a side offer at Santander that could bag you another £200 when you switch to its current account. Firstly, you’ll get a further £100 if you already hold a mortgage with Santander (you needed to have had the mortgage in place by 31 August 2011 to be eligible.) Secondly, it will give you yet another £100 if you deposit £10,000 into one of its savings accounts. 

So there you go. Three bank switches later you could be £700 richer. Just be prepared for exasperated relatives and an inability to remember you own account number.

The problem for me is I’m now older and wiser than three years ago. Back then I wanted the money so switched into First Direct and then out to Santander and bagged £300. I’m now back with First Direct. It was a wrench to leave First Direct back then as the service was fantastic but I did it because there was £200 at stake. But after a year of Santander’s poor customer service and high charges I hurtled back to First Direct. 

There isn’t enough money in the world that would tempt me back to Santander. The Co-operative Bank, on the other hand, could prove hard to resist.

PLEASE NOTE: The Co-op offer is no longer available.

Your Comments

Serves you right if you go to all that trouble and it goes horribly wrong.

I hope CO OP do not withdraw offer but remove incentive if you transfer out in less than 12 months.

Be very careful!! Do not be tempted by the "sprat to catch the mackeral" deals. "There's many a slip twixt the cup and the lip", as the Bard said. Switching is generally speaking fraught with difficulties emanating from miscommunication, apathy and and "it's not my money, so you can shovel your dirt" attitude in these big players. Just read some of the letters to the editors of leading daily nationals.

back of the net, im so proud of you screwing the banks over the defo deserve it

encouraging people to leave first direct by saying one is dissatisfied with their service in order to make a few quid when one is clearly fully satisfied is unethical at best. The blogger has demonstrated low personal standards and should not be encouraging others to copy her!

I have my mortgage and current account with the CoOp and they are brilliant. Nothing is too much trouble. Even refunded the cost of a currency purchace when I complained. I recommend the CoOp, brilliant bank.

The comment two above this one beggars belief! Banks are the least ethical institutions on the planet and I would take them for every penny they've robbed off the tax payer if I could and not think twice about it!