Which bank accounts will give you money for opening an account?

Switching bank accounts is an easy way to earn free cash. So which bank accounts give you money for opening an account? Let’s take a look.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Twenty pound notes in back pocket of jeans

Image source: Getty Images.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Everyone loves a freebie, and switching bank accounts is perhaps the easiest way to bag yourself some free cash. So which bank accounts give you money for opening an account? Here’s what’s currently available.

[top_pitch]

Which bank accounts  give you money for opening an account?

Bank switching incentives aren’t quite as abundant as they used to be. That said, there are still a handful of accounts that’ll reward you for opening an account with them. For all of the offers below, you must use the Current Account Switch Service.

HSBC

HSBC pays a cool £140 if you open and switch to HSBC Advance. To qualify you must start a switch within 30 days. You also need to move across two standing orders or direct debits.

Unfortunately, you aren’t eligible if you’ve had an HSBC account or you’ve opened a First Direct account since January 2018.

Important: To get the bonus, you must use the link above as this deal is only available through MoneySuperMarket. This offer doesn’t appear on the HSBC website. 

Virgin Money

While its account doesn’t pay money, the Virgin Money current account pays switchers a £150 gift card. This can be used for one of Virgin’s Experience days, such as a supercar driving experience, or a fancy dinner at the top of the Shard. The account also pays an excellent 2% AER interest on your cash, though only your first £1,000.

To qualify, you must apply online, switch to the account within 45 days and move over at least two direct debits. You’ll also have to download its mobile banking app and add £1,000 to its linked savings account.

Do note that if you’ve had a Virgin switch bonus before, or you opened a bank account with Clydesdale or Yorkshire Bank since March 2021, you aren’t eligible for this offer.

[middle_pitch]

Aside from bank accounts that give you money, what other incentives are available?

While not all banks pay a hefty bonus when you switch to them, some will reward you in the form of cashback, or a monthly payment. Here’s what’s available at the time of writing.

Santander

The Santander 123 Lite account gives you money for opening an account in the form of cashback on your bills. However, it does come with a monthly £2 fee. It pays 3% on water bills, 2% on energy bills, and 1% on Santander mortgages, as well as phone, broadband mobile, TV, and council tax bills.

You can earn a maximum of £15 cashback per month. To get the cashback, you must pay bills by direct debit and pay £500 per month into the account. 

Halifax

Halifax Reward offers account holders a choice of the following rewards each month.

  • Two Digital Movie Rentals (RakutenTV)
  • Three Digital Magazines 
  • One Vue Cinema Ticket 
  • £5 payment

The account has a £3 monthly fee, though you can avoid this as long as you pay at least £1,500 into the account each month. To qualify for the monthly reward, you must spend at least £500 per month on your debit card or have at least £5,000 in your account at the beginning of each month.

Barclays

The Barclays Bank Account can join the list of bank accounts that will give you money for opening an account, due to its Blue Rewards scheme. The scheme costs £4 a month, but will pay you £7 each month as long as you pay at least £800 into your account and pay out two or more direct debits each month.

If you have a Barclays loan, mortgage, home or life insurance, you can earn more cashback. You can visit the Blue Rewards website for further information.

NatWest & RBS

Sister banks NatWest and RBS, both have reward accounts that will pay you £5 each month, in return for a £2 monthly fee. To get the full £5, you must log into your mobile banking app at least once a month, and pay out two or more direct debits.

To learn more about bank accounts, and to keep on top of which bank accounts will give you money for opening an account, see our guide: 8 questions to ask before opening a current account.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Personal Finance

Note paper with question mark on orange background
Personal Finance

Should you invest your ISA in a model portfolio?

Which model ISA portfolios offer both high performance and low fees? Hargreaves Lansdown, Interactive Investor and AJ Bell go under…

Read more »

Economic Uncertainty Ahead Sign With Stormy Background
Personal Finance

Is it time to exit emerging markets investments?

Investors may well be sitting on losses from emerging markets funds. Is it worth keeping the faith for a sustained…

Read more »

Personal Finance

Share trading? Three shares with turnaround potential

Share trading has been difficult in 2022, but which companies have turnaround potential? Jo Groves takes a closer look at…

Read more »

Man using credit card and smartphone for purchasing goods online.
Personal Finance

Revealed! Why Gen Z may be the savviest generation when it comes to credit cards

New research reveals that Gen Z may be the most astute when it comes to credit cards. But why? And…

Read more »

Environmental technology concept.
Personal Finance

The 10 best-performing sectors for ISA investors

The best-performing sectors over the past year invested in real assets such as infrastructure, but is this trend set to…

Read more »

Road sign warning of a risk ahead
Personal Finance

Recession risk ‘on the rise’: is it time for investors to worry?

A major global bank has suggested the risk of a recession in the UK is 'on the rise'. So, should…

Read more »

pensive bearded business man sitting on chair looking out of the window
Personal Finance

1 in 4 cutting back on investments amid cost of living crisis

New research shows one in four investors have cut back on their investing contributions to cope with the rising cost…

Read more »

Image of person checking their shares portfolio on mobile phone and computer
Personal Finance

The 10 most popular stocks among UK investors so far this year

As the new tax year kicks off, here's a look at some of the most popular stocks among UK investors…

Read more »