Martin Lewis reveals how to get free £200 'in time' for Christmas

Martin Lewis has revealed how to get extra cash in time for Christmas by switching your bank account.

In the latest MoneySavingExpert.com weekly email, Martin Lewis shared with readers how they can bank £200 in time for the festive season. It's a bonus that would be a welcome addition for many families, amid rising bills and energy costs.

“As the average family spends 30% more in December, it's a financial event that needs planning & prep,” Martin Lewis told readers. His top tip to readers, as well as trying to put something away ahead of time, was a “flurry” of “top rated” new deals that have just come out from banks.

The offers, which can see customers paid at least £200 to switch accounts provided they meet criteria, were described as “legal bribes” by Martin, who said: "One way to help pay for the day is to grab a legal bribe to switch bank. A flurry of new deals have just popped out, many that are top rated.”

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Switching is made easy with banks' seven working-day switch service, which closes your old account, moves over your balance for you, swaps over any standing orders and Direct Debits, and auto-forwards any payments made to it from then on.

NatWest, First Direct, Lloyds and Co-op banks are currently offering £100 to £200 in free cash to customers who choose to open a new account with them. In order to switch you have to pass a “not-too harsh” credit check and use the seven-day switching service, as well as meet the criteria for the different accounts.

First Direct 1st Account

Martin’s top pick was the fee-free First Direct 1st Account which offers new customers £175 as long as you have £1,000 going into the account within 45 days. However you have to have not had a First Direct account before, or opened one with HSBC since January 2018 to get this offer. See the First Direct website for full eligibility.

Club Lloyds

Lloyds are offering an even bigger joining bonus with newbies getting £200 for switching to their Club Lloyds account. This account charges £5 per month unless you pay in £2,000 or more per month. Bear in mind you can’t get this deal if you receive switch cash from Lloyds, Halifax or Bank of Scotland since April 2020. See Lloyds website for the full terms.

NatWest Reward Current Account

To claim the £175 switching bonus for switching to the NatWest Reward Current Account customers must pay in £1,250 total and log into the mobile app within 60 days. . However, if you opened a NatWest current account prior to September 16 and it's still open as of September 16, or if you've ever got switch cash from NatWest, RBS or Ulster Bank, you can’t take advantage of this offer. See NatWest website for full eligibility.

Co-op Bank Current Account

This fee-free account will pay you £100 for switching your banking to them, you just need to pay at least £1,000 per month. You can also get a free £25 a month for 3 months if you continue to pay in £1,000 or more per month and meet other criteria. You can’t get this deal if you've had switch cash from Co-op Bank since November 2022.