He said there are several bank accounts with “very exciting” offers
Martin Lewis has crunched the numbers about some “very exciting and lucrative” bank account deals. He explained how you could save hundreds of pounds with an account change.
The consumer champion urged account holders to compare options and find out if they can get a better account. It’s a good time to look at changing loyalty, as a host of banks are currently offering bonuses if you transfer your current account to them. At present, these include £220 from HSBC, £200 offers from either First Direct, NatWest, Barclays, or £180 from Santander.
One unusual development here is that switching offers are now available for select packaged bank accounts. These accounts rarely come with switching incentives.
‘A really good deal’
Mr Lewis described this as a “very exciting and lucrative” opportunity. Packaged bank accounts are current accounts that include additional benefits, such as travel insurance or car breakdown cover for you or your family, though a monthly charge applies.
Mr Lewis explained: “For those who would be buying those insurances any way, they can be a really good deal. Right now, we do have a few packaged bank accounts that are paying you to switch.
“So the amount they are paying you effectively covers that fee, so you are effectively getting the insurances for free.”
He explained that by taking advantage of one of these promotions, you could essentially receive £500 or £600 worth of insurance at no cost. This is because the bank switch offer will often cover the annual total of your monthly account fees.
He broke down how much you could save with these complimentary benefits. For instance, worldwide family travel insurance typically costs between £70 and £100 annually.
Household mobile phone protection, included with these bank accounts, would normally set you back £75 to £100 per policy, while UK and European breakdown assistance could cost you from £50 to £100.
Which packaged bank accounts currently have switch offers?
Current offers you can look at include the Santander Edge Explorer, which has a a £180 switching payment. With a £17 monthly charge, your switching bonus would cover this for a year.
Alternatively, there’s the Co-Op Bank Everyday Extra account, carrying a £12 monthly charge. You could receive up to £300 for switching to them, effectively covering the fee for more than two years.
A further option is the Nationwide Flex Plus from Nationwide Building Society. The organisation is offering £175 to transfer to them, covering the £18 monthly account charge for nine months.
A standout feature of the Nationwide Flex Plus account is its worldwide travel insurance has no age restrictions, unlike the other rival packaged accounts currently offering switching incentives. One older couple wrote into the show to share their success story with their Nationwide Flex Plus account.
‘Great deal’
The couple, both in their 70s, explained they pay extra to cover their health conditions and still consider it a “great deal”. They also pay £40 to upgrade their cruise cover, to include cabin confinements and missed ports.
This proved invaluable on a recent seven-day cruise when they missed out on two ports. The couple called up the insurer and received £150 each for each of the two missed ports, with the £600 landing in their account “very quickly” for their troubles, with no paperwork needed.
They said: “More than covered our additional premium. Highly recommend.” Mr Lewis was very pleased to hear the bank account had proved to be well worth it for the couple.
He said: “They do work, and I tend to find they are especially good in two cases. Family with lots of teens and smart phones, because you get all the mobile phones in; or travel insurance cover for older couples and families, because often that can get really expensive.
“Suddenly the cost of the packaged bank account is the same as you’d pay just for the travel insurance, never mind that you get the mobile phone cover and the breakdown cover on top.”
