Banking for profit!

I recently switched my current account, and I got paid to do it. Whats more, I get paid every month for my custom. That is the way to bank your way to a smarter wallet.

Banks in the UK all recently agreed on an joint effort to a use whats known as the '7-day switch guarantee'. What this means for consumers is, if you are not satisfied with your bank, you can switch, and both the new bank and old bank will complete the switch (including all direct debits, bills, payments, overdrafts will move over) within 7 days. Great news.

But given the lazy nature of human beings, who wants to switch from our local bank? That is what the banks are asking, and they are all vying to have you as a customer. Therefor they are all offering different incentives to have your custom.

This is where you and I can cash in. It pays to shop around, depending on what is on offer and what facilities are important to you. Some of the better ones include:

Santander 123 Current Account

Pros:	Cons:
£100 paid for switching up to 3% interest for all savings up to £20000  up to 3% cash back on direct debits	£2 monthly fee  £500 minimum monthly income  have a minimum of 2 direct debits set up  Arranged overdraft cost: £1 per day  Unarranged overdraft fees: £5 per day

Co-operative Current Account

Pros:	Cons:
£100 paid for switching  £25 paid to charity for switching £200 fee free overdraft limit	0% interest on balance £800 income per month  Unarranged overdraft fees: £20 per month

Halifax Reward Current Account

Pros:	Cons:
£100 paid for switching  £5 reward per month for staying in credit	0% interest on balance £750 income per month  have a minimum of 2 direct debits set up  Arranged overdraft cost: £1 per day  Unarranged overdraft fees: £5 per day

First Direct Current Account

Pros:	Cons:
£100 paid for switching 0% interest for overdraft up to £250 6% interest on linked savings account £100 further paid, if unsatisfied after 6 months and decide to leave	0% interest on balance £1000 minimum monthly income Arranged overdraft fee: 15.9% (over £250) Unarranged overdraft fees: £5 per day

These are the accounts that I considered to be the cream of the crop for the current selection of accounts that are on offer, mainly because of their benefits (instant £100, for starters) and that they all offer really good customer service. The one that is best suited for you will depend based on what you are looking for from your account.

The monthly income requirement on these accounts isn't generally a problem, if you play your cards right and fund the 'same' money in and out of the account per month ;)

Of all of these, I found the Co-operative Current Account, to be the most boring, save for its £200 fee free overdraft. Which may appeal to some, and its £800 requisite income per month, is a little lower than some of the other current accounts (Nationwide and First Direct) asking for up to £1000 a month.

It is an interesting idea to switch to First Direct, and switch away from them after 6 months to earn £200 (£100 for switching to them, £100 for switching away after six months of supposed 'dissatisfaction') from them first. Though I am told it is a really good bank, I was a little afraid I might have been persuaded to continue banking with them instead of moving again.

Santanders 123 Current Account, has an annoying monthly fee of £2 - which amounts to £24 a year. But the cash back offered, generally amounts to huge amounts of money back in your pocket. I have friends who have mortgages with Santander and pay their bills via direct debit and they regularly get £15~20 cash back per month. They offer large amounts of interest on their balances too, beating many saving accounts.

However, as I have no mortgage, and very small direct debits set up for my monthly SIM only deals, this account was not right for me.

In the end I settled with Halifax (surprisingly I wanted to move away from Lloyds, only to settle with another bank in their clutches), but I was tempted by their £5 monthly reward. (Which amounts to £60 per year - so my year one benefits are £160 in total).

In my opinion, Santander and Halifax provide the better selection of whats available, but your mileage may vary. What are you waiting for? Go and get some money back from the banks.