A HUGE high street bank is offering a whopping £400 in free cash – and here’s how you could get it.
Savvy switchers could earn up to £394.50 by moving to Nationwide and making the most of its FlexDirect current account.
But before you rush to switch, it is worth knowing that the cash is not paid all in one go.
Some of the money comes from cashback, while the rest is interest earned on cash held in your current account and savings.
The bumper haul is made up of four different perks:
- Around £84.50 in regular saver interest
- A £175 switching bonus
- Up to £60 in debit card cashback
- Up to £75 in current account interest
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Together, these could add up to a whopping £394.50.
However, you must meet all the conditions and have enough cash to maximise the interest and cashback.
Bag the £175 switching bonus
First, you will need to switch an account held with another banking group to a new or existing eligible Nationwide account.
This must be done through the Current Account Switch Service, which means your old account will be closed and its balance, payments and Direct Debits moved over.
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To qualify, you must:
- Move over at least two active Direct Debits
- Complete the switch within 28 days of opening the account or requesting the switch
- Pay at least £1,000 into the account
- Make at least one payment using your Nationwide debit card
The £1,000 deposit and debit card payment must usually be made within 31 days of opening the account or asking to switch.
You won’t qualify if you have already received a Nationwide switching bonus since 2021.
It is always worth checking the full small print before applying.
Earn £60 in debit card cashback
FlexDirect customers can also earn 1% cashback on qualifying debit card spending for the first 12 months.
Cashback is capped at £5 each month, so you would need to spend at least £500 a month on eligible purchases to get the maximum.
Do that every month for a year and you will pocket £60.
You must pay at least £1,000 into the account each month to qualify.
Bear in mind that not every debit card transaction will count, so check Nationwide’s list of exclusions before splashing out.
Get up to £75 in interest
Nationwide’s FlexDirect account pays 5% AER fixed interest on balances of up to £1,500 for the first 12 months.
Keeping the full £1,500 in your account for the year could earn you around £75.
Again, you must pay at least £1,000 into the account each month to receive the introductory rate.
And remember, the 5% deal only lasts for a year, so you may want to review your options once it ends.
Add another £84.50 with a regular saver
Holding a Nationwide current account also gives you access to its Flex Regular Saver.
It currently pays 6.5% AER variable, and you can save up to £200 each calendar month.
Paying in the maximum amount at the earliest opportunity each month could earn you roughly £84.50 over the 12-month term.
But the rate is variable, which means it could change.
You can also make only three withdrawals during the term without affecting your rate.
If you make a fourth, the rate drops for the remainder of the term.
Is Santander’s £240 deal better?
Santander’s new switching deal offers a larger upfront bonus of £240.
But comparison website Finder says Nationwide could leave you better off overall if you maximise every available perk.
Santander’s bonus is only available when switching to its Everyday Current Account, rather than its Edge accounts, which offer cashback and interest.
Switchers can also access Santander’s Regular Saver, which pays 8% AER and allows deposits of up to £200 a month.
Maxing it out could earn you around £104 in interest, according to Finder.
Add that to the £240 switching bonus and the total first-year return comes to £344.
Kate Steere, personal finance expert at Finder, said: “Santander’s new £240 switching bonus steals the headline, but it isn’t the most lucrative deal on the market.
“The bonus is only available when switching to the Everyday Current Account, rather than Santander’s Edge accounts, which feature monthly cashback and interest.
“While you’ll get access to an 8% AER Regular Saver – earning up to £104 in interest if you save the maximum £200 per month – your first-year haul caps at £344.
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“By contrast, Nationwide’s £175 bonus packs a bigger overall punch.
“Paired with a FlexDirect account, combining the switching incentive, £60 debit cashback, and maximum interest across both savers brings your first-year potential to £394.50.”
How to switch banks for free cash
TO get a free cash bonus, you’ll need to use the official switching service.
That means rather than just opening up a new account, you will need to move your money and direct debits from your existing account into the new one.
You can do this through the Current Account Switch Service (CASS) if your bank is signed up to it.
The process usually takes seven working days to complete.
Essentially it will close your account for you, move your money over and shift all your direct debits and standing orders.
Just be aware it won’t switch any recurring payments like memberships, online subscriptions and payday loan repayments.
You’ll therefore need to move these across yourself.
You will need to pass a soft credit check to switch accounts.
This shouldn’t impact your credit score, although some lenders will consider it a yellow flag if you are often opening and closing accounts.
That means if you’re planning to apply for a mortgage within the next six months, you should hold off on making switches.