Martin Lewis shares burner bank tip that pays £175
Martin Lewis says opening a dedicated "burner" bank account can help you collect switching bonuses of at least £175 without moving your main everyday banking. Speaking on his BBC podcast, the Money Saving Expert founder said eight accounts currently pay over £175 to switch, with some packaged deals effectively covering monthly fees.
Key Takeaways
- Martin Lewis advises a spare "burner" current account purely for switching deals, leaving your main banking untouched.
- He said eight bank accounts are currently paying over £175 to switch, calling it a "bank account bonanza."
- You typically need Direct Debits and may face minimum pay-in rules to qualify for a bonus.
- Some packaged accounts paying switch cash can effectively cover fees, unlocking insurance-style perks.
- Money Saving Expert also flags second accounts with cashback and free Disney+ via Club Lloyds rewards.
What is Martin Lewis's burner bank account tip?
On his latest podcast, Martin Lewis urged listeners to consider a secondary current account used only for switching incentives. The idea is to pocket cash bonuses repeatedly without disrupting salary payments, bills, or your primary bank setup.
Experienced switchers often move the same spare account from bank to bank as new offers appear. According to coverage of his advice via Yahoo Finance UK, that approach lets people chase deals while keeping everyday banking stable.
How do you qualify for the £175 switching bonuses?
Lewis said you should set up a couple of Direct Debits on the burner account so it can complete a valid switch. Banks also set their own eligibility rules, so check terms before you apply.
Common hurdles include paying in a minimum amount each month, switching a set number of Direct Debits, or being excluded if you are an existing customer or recently claimed a similar bonus. The Current Account Switch Service is designed to move payments automatically and offers a guarantee if something goes wrong.
Lewis pointed to research that 86% of people who switch bank accounts said it was easy and hassle-free. Still, multiple applications can temporarily affect your credit file if you plan to borrow soon, so time any moves carefully.
Can a second account unlock streaming and cashback perks too?
Beyond one-off switch cash, Money Saving Expert has also named top current accounts for ongoing cashback and freebies, including TV-related rewards. Club Lloyds holders can choose a yearly reward such as Disney+ with ads, cinema tickets, or other memberships, though a £5 monthly fee applies unless you pay in £2,000 or more.
Other highlighted options include Santander Edge for bills cashback, Zopa Biscuit for fee-free Direct Debit cashback, and Chase for spending cashback plus a short-term saver boost. MSE notes that opening a second account can earn hundreds a year if the perks outweigh any fees or pay-in requirements.
For more entertainment and subscription deal alerts, browse our Streaming & TV Alerts coverage on BlasterPost.
Why does Martin Lewis say now is a good time to switch?
Banks regularly run incentives, but Lewis described today's market as unusually strong, with multiple generous offers live at once. Some packaged accounts that normally charge for travel insurance, mobile phone cover, or breakdown assistance are also paying switch bonuses that can effectively wipe out those fees.
"It's a bank account bonanza," he said, adding that packaged accounts "rarely have switching bonuses" but that a few are currently paying enough to cover the fee, meaning "you're getting the insurances for free." For many households, he argues the rewards outweigh the inconvenience of a spare account strategy.