High street banks are ramping up the incentives to entice you to switch your current accounts, but always read the small print. You might find you’re agreeing to pay a monthly fee and a packaged bank account for the privilege of switching without even knowing it.
Halifax are offering £125 for switching your current account to their Ultimate Rewards account. On the surface, this sounds great, however the small print is a little bit questionable. This account has some great perks, it comes with car breakdown cover, mobile insurance, travel insurance and home emergency cover…oh and a monthly fee of £13. Did you really think you would get £125 for nothing?
But I could get £125 if I switch, the monthly fee isn’t that bad, is it?
Let’s do some basic maths. You will get £125 for switching to the Ultimate Rewards account with Halifax. Great news. Now, as we have just found out, you will get charged £13 a month for this account. If you add up 12 months’ worth of £13, that equals £156.
That’s assuming, of course, that you meet the criteria to qualify for the reduced rate of £13. Tucked away in the depths of the paper work it states that you will need to pay in £750 a month, maintain 2 direct debits and stay in credit, or, they will increase your monthly fee to £15. If you add up 12 months of £15, you end up paying £180.
Wait. So, I end up paying more than the £125 they want to give me for switching?
In short, yes.
Before you commit to switching your current account, do your research. In some cases, you can get a very good deal. In other cases, you can get stung for more than its worth! If you have been reading this and thinking you have had a packaged bank account or have been paying a monthly fee when you shouldn’t have, why don’t you give us a call for some advice? Our Freephone number is: 0800 007 3777. Or you can drop you details below and one of our customer service staff will give you a call back.