Martin Lewis warns bank account holders could lose out on £200 if they don't act now

It's clear we're all desperate to save a penny or two in the run-up to Christmas, what with the cost of living crisis, increased heating bills and the impending Crimbo gift purchasing mania.

So, Martin Lewis' latest warning to bank account holders who could lose out on £200 if they don't act now has clearly come at the perfect time.

Karwai Tang / Contributor / Getty Images

On This Morning, the Money Saving Expert answered a question from one viewer who asked: "Is it a good idea to switch bank accounts to claim the benefit?"

The viewer continued: "I'm looking to change my bank account to take advantage of the money offered to swap.

"I've done this before. Do the banks do everything for you or will I have to contact my direct debit companies. What will I need to do regarding my benefit payments?"

Lewis replied: "When I've done polls on this in the past, 80 percent of people tell me switching is easy and hassle free. The system changed years ago.

"We now have this seven working day switch service, so the switch will take around 10 days on average from the time you apply assuming you're accepted to the time that you get through."

However, Brits need to be careful if they've got upcoming credit commitments, like planning a mortgage application.

The financial guru explained: "People in my office, in my team have made over a grand doing this, people have made over two grand doing it.

"It can have an impact on your credit score though, doing that, so it's only for people who aren't about to apply for anything for credit."

Photography taken by Mario Gutiérrez / Getty Images

He went on to say: "It is free money but you can only be a new customer - because these are new customer switch deals - normally you then have to wait at least a couple of years before you're counted as a new customer again so that's where it gets difficult.

"It takes a little bit of work to do it serially - just to do it once is very easy."

Wondering what benefits you can reap from switching bank accounts?

Well, Nationwide FlexDirect is offering customers a free £200 to switch, while First Direct 1st Account is offering a free £175.

Lloyds' Club Lloyds offers a whole load of freebie goodies on top of a free £175.

Such rewards include; 12 months of Disney+ and six cinema tickets with savvy bankers also able to opt for Coffee Club & Gourmet Society membership or a magazine subscription.

Guess you can take your pick.

Topics: Money, Martin Lewis, UK News, Life

Rhiannon Ingle

Rhiannon Ingle is a Journalist at LADbible Group. She graduated from the University of Manchester in 2021 in English Literature. Alongside her studies, she was the Lifestyle Editor of The Mancunian, the largest student newspaper in the United Kingdom. Her favourite topics to write about include sex and relationships, bizarre lifestyle trends and all things travel.