It may not be something you ever think about, but how long have you been with your bank? For many people, switching bank accounts is something they’ve never considered before, instead happily staying loyal for many years with their bank. After all, what is there to gain from changing banks? Well, for those that do switch, this can be very profitable as banks are always looking to bring in new customers, especially if they can entice someone from a competitor. Here are our top tips on how you can profit from changing your bank.
One of the most common reasons to switch bank accounts is to take advantage of the welcome bonus offered. Many banks will entice customers by providing a cash bonus for opening and switching any direct debits into a new account, sometimes as much as £150. All you have to do is start the process of a full switch of your account, including your salary and any main direct debits, within the agreed time period, usually around 30 days. Each bank will have different new customer offers with a range of bonus amounts. Plus, in some instances, you could do this multiple times over the years. Rather than only allowing those who have never had an account with them before, some banks will put a date on this, for example, not having an account in the last 5 years. So, you could switch back to the bank you left previously and still receive a welcome bonus.
As many people will stick with their accounts for years sometimes decades, the original welcome rates on products may have changed over time. If you were looking for short term loans UK offers, you’d naturally want to find the best rates for the type of loan you need, so if you needed money quickly in an emergency, you can do so at preferred terms. Some people will stick with their bank, however, they may be missing out on better deals elsewhere. Savings accounts also may have seen rates not improve for many years, so by switching banks, you may discover you could boost your savings as well as your earnings. Rather than staying put as it is the easiest option, regularly check new customer offers elsewhere and see if switching can improve rates for you.
Don’t Switch Too Often
Whilst switching banks is a top tip if you can grab a welcome bonus and better rates, you should be careful of how often you do so. You’ll need to keep an eye on your credit report as just like applying for a loan product, switching bank accounts will impact your credit rating. If you switch often between products, this will be seen by banks and lenders and may affect your creditworthiness. What this means is that they may regard your habit of changing regularly as a negative, so it could impact your application. If done less frequently, at least a few months apart, your credit rating will stay stable.
So, if you hadn’t thought about switching banks before, hopefully, the above will provide something to consider. You could profit quite easily under the right circumstances, so browse the potential offers available to you and switch your account today.Updated Date: 18 November 2021, 07:25