| Plus... CK specs £35, 29mths 0%, beauty dupes, slash home insurance  THE TOP TIPS IN THIS EMAIL
| | Urgent. FREE £125 to switch bank ending
Martin: 'If you want to be paid for your custom, stop bitching, start switching'
 The biggest bank switching bribe around is about to end. So if your bank isn't bending over backwards and giving you fiscal foot-tickles on request, why not check if you can at least get paid for your custom, and at best, get an improved deal too?
And I'll shout that even louder to the nearly 20% of people who rate their bank as 'poor' - it's time to stop bitching and start switching. To help, let me break it down for you... Some banks want your custom so much, they'll (legally) bribe new customers to switch to them. To get the reward you'll need to pass a not-too-harsh credit check, and use their official switching service, which...
- Switches you in 7 working days
- Moves all standing orders and direct debits for you
- Closes your old account and auto-forwards payments to the new one -
 Ends Mon. FREE £125 - biggest cash bribe. Newbies switching to the HSBC Advance* account get £125 plus access to a linked 1% regular saver where they can put up to £250/month in. But it doesn't fare brilliantly in our customer service poll.
- How to get it: You must have at least 2 direct debits or standing orders to move across, and meet the £1,750 min monthly pay-in (its way of saying you need £25,600+/year salary going in).
To count as a newbie you can't have had an HSBC bank account since Jan 2018. Or, if you are/were a customer of its sister bank First Direct, that account must have been opened before Jan 2018.
- FREE £100, top service, 0% overdraft - best all-rounder. Slightly less cash here, but First Direct* has a far higher customer service rating - 85% 'great' in our poll that closed yesterday. And while that's lower than it's scored before (more info and results below) it's still the top non app-based bank.
Like HSBC it also gives access to a linked 1% regular saver where you can put up to £300/mth in, plus many also get an ongoing £250 0% overdraft.
- How to get it: Switch and pay in £1,000 within 3mths of opening the account - you can withdraw it the next day if you choose. To count as a newbie you can't have ever had a First Direct account before, or if you are/were a customer of its sister bank HSBC, that account must have been opened before Jan 2018.
- Free £150 experience-days, 2% interest on up to £1,000, top card for spending overseas. Virgin Money* has a different approach that may appeal. It gives a £150 Virgin Experience Days gift card, which you can redeem on activities such as hot-air balloon rides, driving days and sushi classes.
It also pays 2.02% AER variable interest on up to £1,000, and for those who like to go abroad, it has a top-pick debit card for overseas use. Like HSBC though, Virgin doesn't fare brilliantly in our customer service poll.
- How to get it: Apply online, then switch with at least 2 direct debits to move across, register for its app and keep £1,000 in its linked 0.35% savings account until you get the gift card email (which usually takes less than a fortnight). To count as a newbie you can't currently be a Virgin, Clydesdale or Yorkshire Bank current account customer or have had a Virgin current account switch reward before. Many ask if switching bank hurts their creditworthiness. In the short term it can be mildly negative, but unless you've a major upcoming application, such as a new mortgage, I wouldn't be unduly put off. Detailed info on all accounts, including eligibility, in Best Bank Accounts.
PS: If you don't have a bank account and struggle to get one, don't feel forced to pay for a prepaid account - see my help to get a bank account info from the weekly email a fortnight ago. Twice a year we poll MoneySavers to check how their banks have treated them recently - 'great', 'OK' or 'poor'. Our summer poll closed yesterday. It's always surprising how well banks do generally compared with other sectors - here are the results, with links to banks that feature in our top picks... | Bank (no. of votes) | % 'great' | % 'poor' | | 1. Starling (323 votes) | 97% | 1% | | 2. Monzo (531 votes) | 92% | 3% | | 3. First Direct (1,116 votes) | 85% | 7% | | 4. Co-op, incl Smile (169 votes) | 69% | 12% | | 5. Bank of Scotland (105 votes) | 65% | 12% | | 6. Santander (660 votes) | 61% | 13% | | 7. Nationwide (848 votes) | 67% | 19% | | 8. Lloyds (517 votes) | 58% | 16% | | 9. Halifax (392 votes) | 55% | 14% | | 10. RBS (149 votes) | 58% | 21% | | 11. NatWest (556 votes) | 53% | 24% | 12. Barclays (566 votes)
PS: If you're happy with Barclays, there's a way to make it give you £3/mth. | 49% | 27% | | 13. Virgin Money (94 votes) | 46% | 35% | | 14. HSBC (472 votes) | 40% | 33% | | 15. TSB (161 votes) | 30% | 42% | | Only banks with 75+ votes included. Ranked as 2pts per % for 'great', 1pt per % for 'OK' and no points per % for 'poor' (after rounding to the nearest percent). See full bank poll results. |
Since the last poll, First Direct has lost a little ground on Monzo and Starling. This echoes the bank's own apology that its call waiting times have increased, due to misjudged demand as lockdowns lifted.
Its Trustpilot rating has plummeted far further - likely as those who have had problems have probably seen that as a destination to vent - while most customers in our poll still really rate it. One to keep an eye on. Not every bank requires you to use its switching service to get its benefits. This means that while you can switch, you can also choose to open it but keep your main account, and use the new one as a 2nd (or 3rd or 4th) account for a specific purpose, and that may be worth it. - APPy clappy banking. Many people's prime banking interaction is via an app. While some big banks such as Barclays and Lloyds have decently rated apps, there are two star app-based players.
Starling Bank* was rated 97% 'great' in our customer service poll. It gives real-time notifications when you use your debit card (which is top for spending abroad), insights into spending, lets you set savings goals, and pays a tiny amount of in-credit interest. Runner-up is Monzo's 92% 'great', with similar features, though slightly stronger savings options. More in Digital Banking.
- Get PAID TO PAY BILLS - great for joint accounts. Santander 123 Lite* pays cashback on bills you pay from it via direct debit, incl 1% on council tax, 2% on energy and 3% on water. Perfect for joint bills accounts, which I know many couples have.
There's a £2/mth fee but those with mid-to-large household bills should still make a profit of about £40-£80/yr. To get it, you need to meet the £500 min monthly pay-in, so just put that or more in to cover your bills - you can always withdraw any excess.
- Get £500+ mobile, breakdown & travel insurance for £156/yr - great for families. Packaged bank accounts are those where you pay a monthly fee, and lots of insurance products are thrown in.
I call them the Marmite of banking. Make an active choice and they are a great way to get £100s of needed insurance for a fraction of the usual cost. Yet many were upsold or mis-sold unsuitable policies - if so, you may be able to reclaim £1,000s.
For those who need insurance, Nationwide FlexPlus* at £13/mth (£156/yr) is the top pick. Its most powerful cover is for all the family's mobiles - which many separately spend £100/yr on each - plus worldwide family travel insurance up to your 70th birthday, and UK and Europe breakdown cover for all account holders.
Alternatively, there's the Halifax Ultimate Reward account. While Halifax has a higher £17/mth fee, it currently pays switchers £100 to join - factor that in and it's just £104 in the first year. The insurance is similar to Nationwide's but the breakdown cover is UK only and mobile cover is only for the account holder(s) - so it's best for couples getting a joint account. More options in Best Packaged Bank Accounts.  Credit cards are always seen as the bad guys, yet debit cards are debt cards too if you're overdrawn. And a regulation change a little over a year ago means overdraft interest rates have exploded to a typical 40%, DOUBLE the rate of a high street credit card.
So actually for most the priority is to use spare cash to clear the overdraft first, and just pay the minimum on credit cards. There are some options - more info in Top Overdraft Accounts - though as always you will need to pass a not-too-harsh credit check. - Owe less than £350? Get paid to switch to a 0% overdraft. First Direct* offers new switchers a £100, and many get a £250 0% overdraft. So if your overdraft's up to £350, the £100 pays some off and the rest is at 0%. Above that you'll pay the 40%, like elsewhere. Full info: First Direct.
- A year's potentially bigger 0% overdraft. Nationwide FlexDirect* can offer a far bigger 0% overdraft, though the limit depends on your credit history. However, it's only 0% for a year - then it's the standard 40% like most providers. So plan to clear the debt within that time. Full info: Nationwide.
- Do a 0% money transfer. These are specialist credit cards you can use to clear your overdraft. Quite simply, you apply, then ask it to pay money into your bank account, so you owe it instead at 0% for up to 18mths. You need to be careful though. Our Money Transfers guide will take you through it, including top deals.
It's not just about making it cheaper though - I've some quick overdraft tips that can help, and far more in 10 tips to cut your overdraft...
- Aim to repay a fixed monthly amount. Eg, if you're £500 overdrawn, 'paying' £100 means aiming to be £400 overdrawn. A budget will help.
- Consider moving direct debits to just before payday. The idea is you're overdrawn for less time, so costs are lower.
- Got savings? Use 'em to clear it. See Repay debt with savings?
- Can you reclaim past bank charges? See bank charge reclaiming.
- Struggling with all debt? Get free help from Citizens Advice, National Debtline or StepChange. It can make a huge difference. --------------------------------
PS: And it's a goodbye from me... Starting some time next week, I'm taking a summer sabbatical, to put on my 'daddy' hat, and recharge my batteries, in prep for a big run of my TV show from Sept and lots more MoneySaving at MSE. That means for the next few weeks, this email will be in the hands of MSE's Editor-in-Chief Marcus, and the rest of the very talented MSE team. Ta ta. | | DON'T believe the fake 'Martin Lewis' or 'MSE' ads
Lots of scam ads litter social media and even newspaper websites - some of these lie that we or Martin promote Bitcoin, binary trading etc. See Fake ads warning. | New. Our cheap mobile tool now includes a REFURB FINDER
Slash handset costs, eg, Samsung S20 package £200 cheaper (& includes warranty)
You asked, we listened. We've added refurbished phones to our Cheap Mobile Finder comparison tool ( just opt to include 'em in the filters). The tool already finds you the cheapest standalone handset, handset on a contract, or Sim-only deal, and has a whole suite of ways you can find them. And thanks to your suggestions, we've made it more powerful. Of course, if you're happy with your handset, the best way to slash costs is just to use the tool's Sim-only finder. -
 Refurbs are usually just handsets returned after people changed their mind - but they're a lot cheaper. Some may have had small problems that have been fixed, though most won't have the original packaging. They usually have a 12mth warranty and should work and look as new, as Heather said: "I bought a Samsung Galaxy S9 refurb and saved £100s. I love it and there wasn't a single mark on it." Another bonus is they usually come unlocked, so you can add any network's Sim.
- Our new tool covers 15 of the biggest refurb phone retailers. This includes Music Magpie (currently with an MSE Blagged 10% off code), Amazon and Argos, and it only lists phones with the top condition rating. In the filters, opt to include refurbished phones and you can compare refurbs against new phones to find the cheapest way to get it.
- Refurbs aren't right for everyone. Some will only go for a new phone, but even if you're open to a refurb, we've crunched the numbers and while it saves some large, it won't always win. Our rule of thumb is:
Use less than 10GB/mth of data and a refurb paired with a cheap Sim tends to win. Use more, and a new-phone cheap contract often wins as huge data deals exist.
- How refurb prices compare with new prices for popular phones. Not every phone is always available as a refurb (and stock's always limited), but here are a few examples of what is available...
The Samsung S20 5G with 128GB storage is £649 if bought outright new. Yet a refurb version is available for £449. Factor in a 5GB/mth Sim-only deal and it will cost you £584 over two years - the cheapest new handset contract is £779 (with 100GB/mth data - way more than most need).
The difference isn't as stark with an iPhone 12 (64GB), which is priced at £675 new if bought outright. But you can save with a refurb version, which costs £540. Factor in a 5GB/mth Sim-only deal and it's £675 over two years, compared with the cheapest new phone contract at £808 (also with 100GB/mth data - more than most need).
PS: If you're not wedded to a specific handset, our find me the best phone & deal within my budget tool will show your options, or use our find the right phone at the cheapest price tool for the top deal that fits your requirements. | New. Designer clothes rental guide, eg, £345 Jimmy Choo heels £16.50 for a day, £180 Ted Baker dress £29 for four days. With lockdown lifting and going out back on many people's agenda, find out how to glam up without spending a fortune in our new How to cheaply rent designer clothes guide. Got designer wear? As it works in reverse, also see how to make money renting out designer clothes. CONFIRMED: Working from home (WFH) as you've been NHS-pinged? You're eligible for a tax rebate. If you've had to WFH due to NHS Test and Trace, or have received a ping from the NHS app, Martin's had it confirmed you're eligible for a whole year's WFH tax rebate (worth up to £125), alongside those who WFH because their employer told them to. Full explanation in his updated How to claim WFH tax back blog. Updated. 18 foreign holiday must-knows, incl cheap deals, cheap PCRs, rights, euros and insurance. With France now 'amber plus', the Balearics amber and confusion aplenty, see 18 travel need-to-knows. SIX cards now let you shift debt to 0% for 29mths (one pays you £25 too). A balance transfer is where you get a new credit card to clear debt on old cards, so you owe it instead, but at 0% interest. Acceptance is the challenge, so use our 0% Balance Transfer Eligibility Tool to find which'll likely accept you. Top pick is M&S's 29mths 0% (2.75% fee, min £5)* card, which also pays accepted newbies £25 cashback if shifting £100+ within 90 days. Always pay at least the monthly minimum, and clear the card before the 0% ends or you'll pay the full 20%-ish rep APRs. Full help in Top Balance Transfers ( APR Examples). 40+ beauty lookalikes, eg, £6 Aldi eyeshadow palette vs £37 Urban Decay. Many stores sell own-brand items mimicking designer brands, often called 'dupes' - and now's a good time with stock of new items at the biggie for this, Aldi. See if you can save in our Beauty Downshift Challenge. Calvin Klein specs £35 delivered (norm £60+). MSE Blagged. Via code at Low Cost Glasses. Petrol prices at eight-year high - 21 ways to cut costs. See Cheap Petrol & Diesel. | Are you being ripped off on buildings & contents cover?
'I felt such a fool - but I am now saving £330/yr on my home insurance'
We often shout about the dangers of price-walking, where insurers lure you in with a cheap deal, then 'walk up' the cost slightly each year at renewal. This should stop from January as new rules mean insurers must charge new and existing customers the same. While welcome, that's months off and many face a rip-off NOW. Yet our tried & tested home insurance cost-cutters help you fight back. We've the key points of the system below, but first read John's success of the week as inspiration... | To: successes@moneysavingexpert.com
Sent: 14 July 2021 10:40
Subject: Saving, saving, saving
Dear MSE,
I feel such a fool. I have been paying the Co-op nearly £400 a year for buildings insurance. Why I checked now I don't know but it was certainly after your prompting. I'm signed up with LV for £61 a year, saving around £330 a year. I do feel cheated but it's my fault for paying up over the last 30-odd years.
Keep up the most excellent work.
Regards, John | | Tell your friends about us They can get this email free every week | | AT A GLANCE BEST BUYS Longest 0%: M&S Bank (check eligibility / apply* ) 29mths 0%, 2.75% fee (min £5) + £25 cashback if shifting £100+ in first 90 days (21.9% rep APR interest after)
No-fee 0%: Santander (check eligibility / apply*) 18mths 0% (20.9% rep APR) | | | THIS WEEK'S POLL Do you feel your overall finances have improved or worsened since the start of the pandemic? This week in England saw so-called 'Freedom Day' with virtually all restrictions being lifted, and similar lockdown easing is happening across other UK nations. So this feels the right time to ask... how have your finances fared? Starling Bank takes the banking service crown. Last week, we asked you to vote in our biannual banking customer service poll - about 6,800 people responded. As the table further up this email shows, of the banks that received 75+ votes, app-based Starling came top with 97% of its customers rating it 'great' and just 1% 'poor'. Digital banking rival Monzo was a close second with a 92% 'great' score, while TSB took the wooden spoon - 42% rated it 'poor'. See full bank service poll results. | MARTIN'S APPEARANCES (WED 21 JUL ONWARDS) Wed 21 Jul - Ask Martin Lewis, BBC Radio 5 Live, 1pm
Thu 22 Jul - This Morning, ITV, 10.45am, then phone-in from 11.30am MSE TEAM APPEARANCES (MOST SUBJECTS TBC) Wed 21 Jul - BBC Radio 4, Money Box with Adam Shaw, Helen Saxon on travel money, from 3.02pm
Thu 22 Jul - TalkRadio, Early Breakfast with James Max, personal finance news review with Helen Knapman, from 5.35am
Sat 24 Jul - BBC Radio Leicester, Mid-morning with Summaya Mughal, from 11am
Mon 26 Jul - BBC Radio Manchester, Drive with Phil Trow, from 2.20pm
Tue 27 Jul - BBC Radio Cambridgeshire, Mid-morning with Jeremy Sallis, from 12.40pm | NEVER MIND A CUP OF SUGAR... WHAT'S THE MOST RANDOM THING YOU'VE LENT A NEIGHBOUR? That's all for this week, but before we go... after MSE Tine's neighbour popped round and asked to borrow a butcher's bone saw, we asked MoneySavers to name the most random thing they've been asked to lend next door. Answers were varied to say the least, with requests ranging from lawnmowers and rolling pins to emergency bog roll and even an oven (to finish off the roast dinner in). Have a read of the list and add your own on our random neighbour requests Facebook post.
We hope you save some money, stay safe,
The MSE team | |
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