Home Equity Release

If you’re getting a measly interest rate out of your current account, you’ve been with your bank for more than a year or you have to pay over the odds for your overdraft facility, then it’s probably time that you considered switching accounts. You could save or make £100 or more each year, and sometimes you can do it much quicker than that. Banks offer all manner of incentives for you to switch to them, and there’s some deals out there that are far and above the rest of the crowd.

Don’t give into apathy: switching is easy

The usual excuse for not changing current accounts is it’s too much hassle for the incentives. Sure, you have to do some work to apply and switch your payments, but if you’re going to earn £100 for a couple of hours work, then surely that’s worth it! A few years ago, banks gained the ability to transfer standing orders and direct debits for you, making switching much easier. All you’ll need to do for this is to notify the people who pay into your account, such as your employer.

What are the top accounts?

The top bank accounts either if you’re overdrawn or are in credit are from Santander (or Alliance and Leicester as part of Santander), because they offer both good sign up incentives and interest free overdrafts for a period. If you earn over £23,500 a year then First Direct can offer a good alternative because it has a £100 sign up bonus and an interest free overdraft up to £250.

What’s so good about Santander’s accounts?

Both of the Santander accounts have an interest free overdraft for a period, which is ideal if you are often overdrawn. The period on both accounts lasts for 12 months. However, this is the only real benefit you’ll get out of the Santander account. Alliance and Leicester has further benefits to it, so long as you can pay in £500 a month, including:

• £100 incentive for switching using its Premier switching service.
• Multi trip annual travel insurance (Europe only) is part of the package.
• If you can refer a friend, both of you will receive £25 after they set up the account and there’s no limit to how often you can do this!

The only drawback with the Santander accounts is that you will not be able to get one with the benefits if you have banked with Alliance and Leicester, Abbey or Cahoot in the last three months. If you already have an account with any of these, then First Direct should be your first port of call – so long as you earn enough!

Take a look at the Santander website for more information on their bank accounts.

Comments are closed.