According to the Financial Inclusion Commission, over 2 million UK citizens don’t have bank accounts. Also, a significant number of UK citizens with bank accounts (50%) prefer handing their money in cash, and 15% of all newly opened accounts are either abandoned or closed.
UK banks have seen this as an opportunity which is why they are now paying people to open and use bank accounts. UK citizens who open new bank accounts or switch accounts stand to enjoy great deals in the form of monthly bonuses, cash backs, loyalty points, interest-free overdrafts, name it! There are many banks with great offers. TSB, for instance, has re-launched its free £125 to customers who switch to its Classic Plus accounts.
If you don’t have a bank account or you are unhappy with your current one, many UK banks have incentives for you. Here’s more on how UK banks are paying people to open accounts.
1. Free switching cash
Switching bank accounts has never been faster and easier. Furthermore, you stand to earn free switching cash. You can use the switching service to open a new bank account and transfer everything in record time. The top UK bank accounts offering free switching cash include; First Direct (offering £125 free switching cash), TSB (offering £125 free switching cash plus 5% cash back) and HSBC (offering £150 free switching cash plus £ to stay).
UK banks are also offering great deals to people who open accounts paying cashback. These accounts are perfect for people who spend a lot of money on household bills and don’t have enough money to left to earn interest. These accounts are also perfect for individuals who pay their bills via direct debit. Some of the top UK bank accounts with cashback include; NatWest which has a 3% cashback currently for individuals who spend over £270 on household bills monthly. For a monthly fee of £3, NatWest will pay you 3% cashback on your household bills with no limit on the amount of money you can earn.
Santander 123 Lite is offering a 3% cashback with a lower fee £1. However, customers don’t get to enjoy in-credit interest.
3. Free insurance
UK banks are also offering bank accounts with free insurance. These accounts are perfect for individuals who need associated insurance and are always in credit. UK banks which are paying for their clients’ insurance include; Nationwide is offering £600 worth of high-end travel insurance as well as £120 worth of mobile and breakdown insurance. Although customers have to pay £10 per month to enjoy this deal, account holders stand to enjoy great benefits that are otherwise costly.
If you need to open a new account to make your overdrafts cheaper, there are great options for you. UK banks like First Direct and Nationwide have great deals. First Direct has a £250, 0% overdraft plus £125 cash when you put money towards your overdraft to pay it off.
Nationwide has a 12 month, 0% overdraft deal to help you get your finances in order. You also enjoy a £100 bonus for referring a friend who successfully switches/opens a Nationwide current account. Your friend will also receive the bonus.
There are however conditions to enjoy this deal i.e. you must clear your overdraft in a year or start paying applicable charges. Also, Nationwide doesn’t promise to match the overdraft facility clients were receiving previously in cases where clients are switching accounts.
UK banks are offering many great deals to people who open accounts. These deals range from free switching cash to cashbacks, free insurance, and incentives for overdrawing. It is, however, crucial to check the conditions and fees applicable for you to qualify for the incentives. Missing anything in the fine print can easily reverse your gains. The bank account/s you open must match your needs and the bank’s conditions.