Martin Lewis explains 'good way' to make up to £200 for free before Christmas

Martin Lewis has explained how you could make up to £200 before by switching bank account.

The MoneySavingExpert flagged five bank accounts that will pay you for your service - four of which will send you the cash before December 25. All of the bank switches flagged by must be completed using the free Current Account Switch Service. But make sure you read all the terms and conditions first - as sometimes you may need to pay in a certain amount, or carry over direct debits.

Speaking during his Christmas special, Martin said: “If you love your bank… then stick with it. I wouldn't tell you to leave. If not, then so many banks are willing to pay you.” He added: “It's a good way to make free cash and get it in time for Christmas.”

When you switch bank accounts, your direct debits and standing orders will automatically be moved across, but for any recurring payments that use your long card number, most commonly with subscription services, you’ll need to update these manually. If you’re considering multiple switches, and you’ve got an important credit application coming up, Martin issued a word of warning.

He said: “If you do one switch, well, it's an application on your credit file which has a very minor, short term negative effect. Lots of those in a short space of time can be an impact. Banks also like to see evidence of longevity, so that's also slightly negative. So I wouldn't switch my bank account if I had a mortgage application during the next two months.

“Longer than that, I wouldn't care that much. It's only very minor. It doesn't really have a hit. Switching very regularly to make money can have a bigger impact. Do you have a use for your credit working? Do you have a debt application you want to make, or a mortgage application you want to make? No, well, in which case it'll have an effect, but why’d you care?”

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How to make up to £200 switching bank accounts

Lloyds Bank: You'll get £200 if you switch to a Club Lloyds account by December 10. Club Lloyds customers can also choose from a range of lifestyle benefits, including a 12-month Disney+ subscription, a choice of six cinema tickets, magazine subscription, or Coffee Club and Gourmet Society membership.

You also get access to a linked regular saver paying 6.25% fixed for one year. To get the £200 switch cash, you need to move across three direct debits. Once you've done this, the £200 is paid within ten working days. You won't be eligible for the £200 switch cash if you've already received a switch bonus from Lloyds, Bank of or Halifax since April 2020. Keep in mind there is a £3 monthly fee with the Club Lloyds Account but this is waived if you pay in £2,000 a month.

NatWest: NatWest is giving away £180 to those who move to its NatWest Reward account. You’ll need to pay in £1,250 into your new NatWest account and log into the mobile app within 60 days of switching accounts. Once you’ve done this, the £180 will be paid within seven days.

The NatWest Reward account comes with a monthly fee of £2 - but it is possible to get £5 cashback, which wipes out this cost. Every month, you can get £4 cashback if you have two direct debits of £2 or more, plus £1 cashback by logging into the mobile app. NatWest also offers a linked Digital Regular Saver which pays 6% interest. You won't be eligible for the £180 switch award if you've previously received a switch bonus from NatWest, RBS or Ulster Bank before.

First Direct: You can get £175 by switching to the First Direct 1st Account. For this switch bonus, you must pay in at least £1,000 and open two direct debits or standing orders from the account within 45 days of opening it. You must also register and log onto digital banking, within 45 days of the account opening and spend on your debit card five times.

You must be a "new" customer of First Direct to get this cash - this means you must not have had a bank account with them, or opened an HSBC current account on or after January 1, 2018. If you have a HSBC account, it must have been opened before this date. The £175 is paid by the 20th of the following month after you meet the switch bonus criteria. It's worth noting as well that you get access to a 7% regular saver for a year with the 1st Account.

Nationwide: Nationwide is giving £175 to those who switch their current account to its FlexDirect account. To qualify, you must transfer a minimum of two active direct debits, deposit a minimum of £1,000 and make one debit card payment within 31 days.

You also get access to a linked regular saver paying 6.5% variable interest for a year. You won't be eligible if you have switched into a Nationwide account, or have received switch cash from Nationwide, since August 18, 2021. The £175 is paid within 10 days of meeting all the criteria.

Santander: You can get £150 from Santander - but be warned that the money won't arrive before Christmas. To get this cash, you need to switch across two direct debits and pay in at least £1,500. If you switch to the Santander Edge account, there is a £3 monthly fee - but you can get up to £20 a month cashback.

This includes 1% on energy, council tax, broadband, TV, mobile and water bills, up to £10, as well another 1% on your spending on supermarket, fuel and trains, also up to £10. You also get a linked saver that pays 6% on up to £4,000 for the first year. You won't be able to get the £150 switch cash if you've previously had a switch bonus from Santander since September 2021. The £150 will be paid between 60 and 90 days after starting the switch.

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