Martin Lewis Extreme Savers is back and on Wednesday night’s show the money saving expert met a man who’d saved £4,000 just by being clever with his bank account.
David Buckeridge detailed how he took advantage of cash switch offers to help him make an extra bit of money, so much so he was able to put a deposit down on a house.
Speaking on the episode David revealed how he had moved banks “15 or 16 times” in the last six years, with Martin explaining he was part of the “growing tribe who, rather than bagging one switching bonus, calculatingly play the banks at their own game to absolutely max the amount of free cash”.
The 31-year-old explained how it works, telling viewers: “Bank switching works by telling the bank that you want to switch to ‘this is the account that I’d like to switch from please’ and in the space of seven days they will transfer across all the money you have in your account, all your direct debits and any standing orders.
He explained the idea of it is to try and make the switch as “seamless as possible”.
Sharing one example, David said: “For one of the banks, I actually made £250 as a cash incentive and that was a £150 upfront but, because they were so confident in their services, they offered anyone who wanted to leave after six months, £100 for leaving.
“So, six months came round and I said I’m gonna leave and true to their word, they gave me £100.”
David reckons he’s made £1,600 in switch money but even more from referring family and friends and through interest.
He explained: “I would estimate I’ve made around £1,600 so far and that doesn’t include some of the referrals I’ve made from referring some of my friends and family to do exactly the same thing, it doesn’t even include the ongoing interest so compared to if I’d just left things as they were and kept with my old faithful account, I’ve made £4,000 more.
“I was able to put down a deposit on my first house and there’s no way I’d be able to do that without the bank switching.”
Martin Lewis did have “one warning” for those looking to so the same, however.
He said: “Multiple switching can have a negative impact on your credit worthiness, now that isn’t a problem if you’ve got no credit applications to make, but if you’re shortly to do an important application, for example for a mortage, I’d steer clear for the time being.”
David’s tips comes after a couple shared their story after moving to Wales to save a fortune on bills.
Matthew and Charis Watkins gave up long hours and stressful jobs and relocated from Essex to the rural countryside with their children, where they are now largely self-sufficient.
And you can catch up on Martin Lewis Extreme Savers on the ITV Hub now.