Absolutely! Martin Lewis is one of the strongest proponents for **regularly reviewing and potentially switching bank accounts**. His advice is almost always a resounding “yes” if you can find a better deal elsewhere.
Here’s a breakdown of why Martin Lewis and financial experts generally recommend switching bank accounts:
### Why Martin Lewis Advocates for Switching
1. **”Free Money” (Switching Bonuses):** This is often Martin Lewis’s primary driver. Banks frequently offer significant cash incentives (e.g., £150-£200 or more) to new customers who switch their current account to them. These are essentially rewards for your business.
2. **Maximising In-Credit Interest:** While less common than in the past, some current accounts still offer attractive interest rates on money held in your account, especially up to a certain balance. If your current bank pays nothing, switching could earn you money.
3. **Cashback on Bills/Spending:** A select few current accounts offer cashback on direct debits for household bills or on debit card spending. Over a year, this can add up to a decent sum.
4. **Avoiding High Overdraft Fees:** Many banks charge very high interest rates (often 30-40% APR) for using an arranged or unarranged overdraft. Switching to a bank with a cheaper or even interest-free overdraft facility (for a limited period or amount) can save you a lot if you frequently dip into the red.
5. **Better Customer Service & Features:** If you’re unhappy with your bank’s app, online banking, branch service, or general responsiveness, switching can lead to a much better banking experience.
6. **Ethical Banking:** For some, choosing a bank that aligns with their ethical values (e.g., investment policies, environmental impact) is a key reason to switch.
### The Current Account Switch Service (CASS)
Martin Lewis frequently highlights the **Current Account Switch Service (CASS)** as a game-changer. It makes switching incredibly easy and guarantees:
* **All payments (direct debits, standing orders, incoming payments) are automatically moved.**
* **Your old account is closed.**
* **Any payments accidentally sent to your old account are redirected for at least three years.**
* **The switch completes within 7 working days.**
* **You’re protected by a guarantee should anything go wrong.**
This service removes the hassle and fear of things going wrong that used to deter people from switching.
### Key Things to Consider Before Switching (as Martin Lewis would advise):
* **Eligibility Criteria:** Most switching bonuses require you to meet certain conditions, such as:
* Depositing a minimum amount each month.
* Setting up a minimum number of direct debits (e.g., 2 or more).
* Using mobile banking or your debit card a certain number of times.
* Staying with the bank for a minimum period.
* **Credit Score Impact:** While applying for a new bank account usually involves a “soft search” initially, opening the account typically involves a “hard search” that can leave a temporary mark on your credit file. For most people, this is minor, but if you’re about to apply for a major loan (like a mortgage), you might want to hold off.
* **Don’t Just Chase Bonuses:** While attractive, also consider the ongoing benefits. A bank offering a great bonus might have high overdraft fees or no in-credit interest, making it less suitable long-term if those factors are important to you.
* **Review Regularly:** Even if you’ve recently switched, new and better deals emerge all the time. Martin Lewis encourages a “financial spring clean” of your accounts every so often.
**In summary:** If you haven’t reviewed your bank account in a while, or if you’re not getting any benefits from your current one, Martin Lewis would almost certainly tell you to explore your options and consider switching to take advantage of better offers. It’s often one of the quickest and easiest ways to put more money in your pocket.
