Easy bank account trick will get you free £175 in time for Christmas - how it works

First Direct and Nationwide are both offering the cash payments for your custom - and switching accounts is actually easier than you probably think

Major banks are paying £175 for you to switch your current account to them - and you could get the cash before Christmas.

First Direct and Nationwide are both offering the cash payments for your custom - and switching accounts is actually easier than you probably think. You'll normally need to complete the switch process by using the free Current Account Switch Service. There are some hoops you’ll need to jump through first though - so make sure you read the terms and conditions of each offer carefully before you apply.

For example, sometimes you’ll need to pay in a certain amount, or have multiple direct debits. You may also need to be a new customer or not have held an account with that bank for a certain number of years. Be aware that each application will show on your credit file, so you may want to hold off on doing multiple switches if you’re going to be making an important credit application soon, such as a mortgage.

Nationwide

Nationwide is giving £175 to those who switch their current account to its FlexDirect account. You'll also get 5% interest on current account balances up to £1,500 for a year and 1% cashback for 12 months on up to £5 a month. 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 won't be eligible if you have switched into a Nationwide account, or have received switch cash from Nationwide, since August 18, 2021. If you just want the £175, you can switch into FlexAccount or FlexPlus package account, which comes with a £13 monthly fee, but you won't get the 5% interest and 1% cashback.

If you're already a Nationwide customer, you can get the £175 by switching a current account you hold with another provider to their existing Nationwide account - but similarly, you also won't get the 5% interest and 1% cashback. The switch must be completed within 28 days and the £175 is paid within 10 days of meeting all the criteria.

First Direct

First Direct is also giving new customers £175 if they switch their current account. With First Direct, you must pay 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.

After the criteria has been met, you can expect to receive the bonus by the 20th of the following month. 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. Although customers may hold an HSBC current account and still qualify for the offer, as long as the current account was opened before this date.