How I outwitted the banks and made £1,300 by being a serial switcher

Before the pandemic, Verena Hallam’s spending had spiraled out of control. The 32-year-old regularly spent money on nights out with friends she couldn’t really afford – and had accumulated £13,000 in debt.

But after vowing to get a handle on her budget, she discovered a brilliant — and easy — way to make some extra cash.

Her then-partner had encouraged her to transfer her current account to Nationwide, which offered a generous referral bonus at the time.

That simple move earned them both £100. Over the course of 2019, she referred five friends, netting a further £500.

“It was so easy. All I had to do was fill out a form that took ten minutes and Nationwide did the rest. I was devastated when the company stopped the offer,” Verena says.

She wondered what other deals are out there and then began scouring the internet for tips from fellow serial checking account switchers.

Many advised opening multiple accounts to make money faster. So she set up two bank accounts to use to switch.

“I divided my accounts so that they each had two active debits, because that’s usually a requirement for these offers,” she says.

“As soon as I saw a new deal pop up, I used the account that was eligible for the switch.”

In the following year she made £175 from NatWest, £75 from HSBC and £125 from First Direct.

More recently, she raised £400 through a refer-a-friend scheme offered by Chase Bank. “You have £20 to refer someone to their checking account, up to a maximum of £400, which I earned in a week and a half,” she says.

Some deals have stricter eligibility criteria than others. For example, you must deposit a certain amount each month before you are eligible for the reward.

However, with most providers you don’t have to leave this money in your account for long.

“HSBC’s full bonus was £175, but I didn’t meet the income requirement, so I only got £75,” explains Verena.

Lancaster’s digital and online marketing consultant has since started a personal finance blog called Surviving To Saving, and has written in-depth articles detailing her top tips for making money by switching accounts.

She keeps a spreadsheet of the terms and conditions of each deal so she can easily track if she’s met the requirements, when she’s likely to be paid, and if she can use an account to get another switching bonus.

The latter is vital as some banks reserve their cash offers for new customers or those who have not taken into account in the past two years. In total she has now made around £1,300 and plans to continue.

Top offer: Nationwide is currently offering new members £200 if they switch to a FlexPlus, FlexDirect or FlexAccount – an increase of £75 from what it paid previously

For those eager to get involved, the timing couldn’t be better as many banks have launched lucrative switching offers this year.

Britain’s largest construction company, Nationwide, is currently offering new joiners £200 if they switch to a FlexPlus, FlexDirect or FlexAccount – a £75 increase from what it previously paid. You must have at least two active direct debits and close your old account to be eligible.

TSB is offering customers up to £180 to switch to its Spend & Save or Spend & Save Plus current account. The premium is paid in two installments.

Customers who close their previous current account will be eligible for £125 as long as they have set up two direct debits and made a payment with their debit card before November 18.

They then get another £55 if they make at least five payments between December and May and pay £500 a month.

NatWest will pay £175 to customers who open a Select, Reward, Premier Select or Premier Reward current account before 5pm on 3 November.

You must deposit £1,250 and log in to the mobile banking app once before December 16 to be eligible. Royal Bank of Scotland offers an almost identical incentive.

First Direct is also offering customers £175 to switch. You must deposit £1,000 within three months and must not have had an account with First Direct or HSBC since January 1, 2019 to be eligible.

However, First Direct warns that it is in high demand, so requests may take longer than usual.

To avoid disruptions when switching, you should not switch on a day when you expect direct debits to disappear from your account.

You can still move accounts if you are overdrawn, but check if your new provider has a similar arrangement.

Jo Thornhill, personal finance expert at comparison site MoneySuperMarket, adds: “When you apply for a checking account, many banks will do a ‘hard check’ that will show on your credit report.

“One won’t be too much of a problem, but if you record multiple hard checks in a short period of time, it can hurt your credit.”

l.purkess@dailymail.co.uk