How to save up to £200 by switching bank accounts

Santander offers free money to anyone who opens a 123, 123 Lite, Select or Private current account

Santander is now offering households cash back on their energy bills and extra money if they switch accounts.

The bank distributes free money to anyone who opens a 123, 123 Lite, Select or Private current account.

Customers will benefit from a 4% discount, compared to 2% previously, on their gas and electricity bills paid by direct debit in September and October.

It comes as experts predict energy bills could hit £3,358 from October and £3,616 from January.

What does Santander offer?

The bank has also increased the monthly cap, the maximum amount of cashback you can get, from £5 to £10 per month for the two-month period.

It is the only UK bank to offer customers with 123 current accounts continuous cash back on household bills.

This includes 1% on council tax bills, mobile phone, broadband and any Santander mortgages and 3% on water bills – both are capped at £5.

Santander is also offering a switch bonus of £160 for new and existing bank customers who open one of the accounts.

Hetal Parmar, head of banking and savings at Santander, said the offers are “an extra boost, putting more money in customers’ pockets”.

How much money can I earn with these offers?

Customers could earn £40 cashback over the winter, for the six months September to February – that’s £10 for September and October and £20 in total with the biggest cashback.

You will also receive up to £5 per month, which is therefore worth £20 over the next four months.

But it’s important to remember that this is the maximum money you could receive.

The actual figure will be based on your home energy bill.

Alongside the £160 switch bonus, households could get a £200 raise.

There is a monthly fee of £4 to maintain the account, which is paid automatically each month.

This is something you should consider before deciding to sign up for an account.

Can I go to Santander to get money?

Certain conditions must be met to benefit from the discount on the energy bill.

Anyone who has had a previous switch offer from Santander will not be eligible.

To be eligible for cashback, customers must be over 18 and paying at least £500 per month.

You must also have at least two active direct debits.

Other conditions may apply, so be sure to check them first in order to get the money.

To get the switch bonus you’ll need to pay at least £1,000 per month and have set up two direct debits – in addition to using the current account switch service.

How to change banks

The Switch Current Account service can help you switch your current account.

All you have to do is apply for the new account you want and the new bank will notify your existing provider that you are moving.

Be sure to check all terms and conditions attached to the account first.

If you have an overdraft, you should find out before switching whether your new bank will support it.

Although the Switch service makes things easier, you’ll still need to manually update some important things.

Although your salary should be redirected to your new account, it is worth informing your employer of your new payment information just in case.

You should ensure that you download a copy of your statements and transaction history when switching, as this information will be erased when your old account is closed.

You can choose a changeover date that works for you – just be sure to allow seven working days for the changeover to take place.

Also, make sure the date you choose is not a Saturday, Sunday, or public holiday.

Once you have met the terms and conditions of the new bank, you can switch again to earn even more money.

However, some accounts require you to be a customer for a certain period of time to get the free money.

What other help is there to save money on energy bills?

Help is available through various programs and funds.

British Gas has a hardship fund, which can mean you can lend up to £1,500 of free money for your bills.

If you have a prepaid meter, you may receive a one-time fuel voucher.

You’ll need to contact your provider directly to see what’s on offer and if you might be eligible.

The Household Support Fund will also help support families during the cost of living crisis.

It provides you with money to pay your bills or food expenses.

Former Chancellor Rishi Sunak revealed earlier this year that every household will receive a £400 cut on their energy bills.

Pensioners can also receive an additional £300 in November or December.

If you’re having trouble with your bills, these organizations are here to help: