Money making tips: Man makes free cash by switching bank accounts | Personal Finance | Finance
Mr Downes continued: “The original account earned 1p interest every month.
“I switched to Halifax as they had Electron and I could pay in shops with my card instead of withdrawing cash from the banks all the time.”
Since then he’s switched at least once a year and does the same with credit card companies, transferring his balance to benefit from new member deals.
Although he’s never had an issue when switching, he does warn others that it can have a small impact on one’s credit score.
The entrepreneur explained: “My credit rating, in the beginning, was taking a dip as I had too many bank accounts and credit cards.
“I ended up solving this by closing down ones I didn’t use and sticking to one at a time”
Another man, 33-year-old Will Hatton who lives in Exeter says he has also made thousands from being a ‘serial switcher’.
He told Express.co.uk that it’s not just about the money, advising people to evaluate what else is important from the interest rate available, through to customer service.
Kevin Mountford, savings expert and co-founder of Raisin UK said: “If you do switch bank accounts you will see that often, loyalty doesn’t pay.
“In fact, it is the opposite!
“Banks want to attract new customers, so naturally, new joiners are likely to get the best deals.
“Although you may be tempted to stay with your lifelong account, often because you don’t want the hassle off having to look for a new account – browsing new opportunities for banking is going to give you far better returns in the long run.”
