Martin Lewis reveals top bank accounts to switch to
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Although interest rates on savings accounts have taken a bit of a beating over the last year following the Bank of England’s decision to cut the base rate to 0.1 percent in March 2020, it looks like account switching offers are back with a vengeance.
Savvy savers will be pleased to know that interest rates are slowly beginning to recover with Nationwide’s latest product offering a competitive savings rate that could pique people’s interest.
Switchers will also get £100 deposited into the account for free once the switch is completed and it will all be done for them using the Current Account Switching Service.
The sweetener of £100 is available to those looking to switch to the bank’s FlexAccount, FlexDirect, or added value account FlexPlus.
Existing customers who have a mortgage with the building society can also switch their current account and will get a £125 reward.
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All three Nationwide accounts offer different rates and benefits that could be better for some people depending on their circumstances and needs.
For most people the fee free FlexAccount will suffice, or there’s FlexDirect which offers a two percent AER for 12 months on balances up to £1,500.
FlexPlus costs £13 a month but could save people money if they are paying for breakdown cover, mobile phone cover and travel insurance separately.
Existing members of the building society who currently have a mortgage or savings account won’t miss out either, they’ll get a £125 switching bonus if they decide to move their current account over using the Current Account Switch Service.
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The Current Account Switch Service is free for customers and ensures that all direct debits and upcoming payments are moved over within seven days, so people don’t need to do anything.
There are a few exciting accounts being launched at the moment, Britons can not only get a nice sweetener for switching accounts but a better savings rate too, so it’s worth looking around.
What’s interesting about this deal is that Nationwide is rewarding its loyal customers too and actually giving them £25 more than new customers, so they’ll get £125 if they bring another account over.
Customers do not need to close their old account either and they won’t be bothered by a sales call to try and convince customers to stay.
Nationwide is urging potential switchers to hurry because the deal will not be around forever. However, it is not clear when the deal will actually come to an end.
More than six million Britons have switched bank accounts through the Current Account Switching service to date and some people have made over a thousand pounds.
Money Saving Expert Martin Lewis is a big fan of using these sweetener offers to get hold of free cash and many people on his website have thanked him for helping them get hundreds or even thousands of pounds just for switching bank accounts.
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However, it’s important to bear in mind that sweeteners like free cash can be tempting but what suits one person when it comes to choosing the best bank account might not suit another.
Individuals are encouraged to consider aspects such as interest rates and overdraft fees – added benefits like free breakdown cover and home insurance are all well and good if they will be taken full advantage of.
Any payments that are due to go into an old account will be moved to the new one automatically for the first three years.
If something does go wrong, it is covered by the Current Account Switch Guarantee, so customers can contact their new bank for a refund.
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