The Money Saving Expert himself is back with another trick to save some cash as the cost of living crisis continues to have an impact on our bank accounts. Founder Martin Lewis has revealed a simple tip which could earn Brits £175 if they get savvy about their bank accounts.
The tip, flagged by MSE, is to claim £175 by switching to the Santander 123 Lite account. The account costs £2 a month but the money can easily be earned back as account holders gain up to £15 a month in cashback – cancelling out the fee. In total, there are three ways to earn cashback with each method being capped at £5 per month.
The first tier is for council tax, mobile and home phone bills, broadband and paid-for TV packages and Santander mortgage payments. The second tier is two per cent back on gas and electricity bills, and Santander life and home insurance, then the third tier is three per cent cashback on water bills.
The Money Saving Expert website estimates a home with mid to large bills could earn up to £80 per year, even after the fee. However, there are some other eligibility criteria needed to get the £175 switch bonus. The website states: “To get it, you need to have/switch two direct debits, log in to online/mobile banking, have a one-off £1,000 going in, then fund £500/month (for example, by paying your salary in). The bonus will be paid within 30 days of meeting the criteria.”
Similarly, First Direct is also offering a switch incentive. While they don’t offer cashback they are giving anyone who sets up a current account with them £175. The final step to getting £400 free, is to apply for the app-only Chase current account. This account offers one per cent cashback on all daily spending. MSE said: “For a family who’d spend £1,000 a month on the card, that’s £120 cashback over the year. So use Santander for your bill payments, and then fund this for normal spending.”