Which banks give money for opening an account?

It’s always nice to get a little money for nothing. We are here to break down which banks give you money for opening an account.

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.

Hand holding pound notes

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.

It’s nice to get a little something extra – and you could get some extra cash just for switching your bank account. We’re here to help break down which banks give you money for opening an account.

Which bank accounts offer money?

While switching incentives are not as plentiful as they used to be, there are still several banks that will give you money for opening an account.

HSBC Advance

If you are a new customer switching to the HSBC Advance account, you will receive £125 on account opening as well as a £20 Uber Eats voucher.

In order to qualify, you must open an account by Sunday 9 May and start a switch within 30 days. This involves moving two or more direct debits or standing orders across and paying in £1,750 a month.

First Direct

Online bank, First Direct, is offering £100 for opening an account. Similar to HSBC, you need to open the account, switch and pay in more than £1,000 within three months.

Halifax Reward

Another bank to give you money for opening an account is Halifax. Its Reward account offers £100 when you open it and start a switch before 4 May 2021. Just remember that this account has a £3 monthly fee, but this is waived if you pay in more than £1,500 a month.

If you also spend £500 a month on your debit card or keep a balance of £5,000 or more in the account, then you can also choose from the following rewards:

  • £5 a month in cash
  • Three monthly digital magazine subscriptions
  • Two Rakuten online movie rentals a month
  • One Vue cinema ticket and a voucher for half-price popcorn each month

Are there bank accounts that offer other incentives?

We’ve covered the bank accounts that give you money, but there are other types of incentives on offer. If free cash isn’t your thing, then may cashback or savings interest will appeal to you.

Virgin Money

If you open a Virgin Money bank account, then not only do you get a free 12-bottle case of wine from Virgin Wines, but also 2.02% interest on the first £1,000 in your account. It also comes with a linked easy-access savings account.

You just need to complete the switch (including at least two direct debits) within 31 days. Virgin Money also asks that you download and register for the mobile banking app and add £1,000 to the linked savings account.

Santander

Santander’s 123 Lite account offers tiered cashback on certain household bills:

  • 3% on water bills
  • 2% on gas, electricity, Santander home insurance and life protection
  • 1% on Santander mortgages, phone, broadband, mobile and TV bills and council tax

Things to note are that the account has a £2 monthly fee and cashback is capped at £5 in each tier.

In order to qualify for the cashback, you need to pay in £500 or more a month, have two active direct debits and log on to online or mobile banking at least once every three months.

Nationwide

If you want to earn a little interest on your current account, then Nationwide’s FlexDirect could be an option. Open a FlexDirect account and you’ll get an interest rate of 2% fixed for a year on balances up to £1,500.

To qualify, you need to pay in at least £1,000 a month. Just be aware that the rate will drop to 0.25% after the first year. So then it may be time to switch.

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 »