Earning money from banks

Over recent years banks in the UK have not seen much positive publicity, and have come under fire for everything from security breaches to hefty charges.

However, although the charges imposed by many banks are extortionately high – an issue that will hopefully be resolved in a pending High Court test case relating to bank charges – there are ways in which the average consumer can actually make money from banks. Some of the ways in which you can make money from banks are pretty obvious, such as looking around for the best rate of interest on current account credit balances or savings, but others are a little more obscure.

Firstly, you should bear in mind that banks offer a range of accounts, and may not necessarily be eligible to sign up to certain accounts or open an account with certain banks, as many will either not accept those with poor credit, for example, or will only offer the most basic banking facilities. However, if you do have the luxury of choice then you have a better chance of being able to make money from the bank, which is a nice way to turn the tables at a time when banks are being accused to taking too much money from the customer.

Looking for the best interest rates:

Of course, one of the most obvious ways in which you can earn money from banks is by finding the most competitive rate of interest. Competition amongst banks is very tough these days, and with banks trying to attract new custom you will find some competitive rates available, which means that you can make your money work harder for you. You will usually find that interest on current accounts is not very high – in fact some banks, such as First Direct, have stopped paying interest on current accounts altogether even if there is a credit balance. However, the interest paid on savings accounts is considerably higher, and by looking around for a good rate of interest for your savings, you can make sure that you get back as large a return as possible on your hard earned cash.

Cash incentive:

An increasing number of banks have started to offer cash incentives to new customers in order to entice them into opening an account. In some cases you can get £100 from banks simply for opening a current account with them (subject to terms and conditions of the account) although you will generally have to wait several months and have operated your account well within that time in order to qualify. Not all banks offer this cash incentive, and of those that do the amount offered can vary.

Referrals:

In some cases banks will pay you for referring other customers to them, and this means that you can pretty much make money for nothing from the banks. All you need to do is get friends or family members to sign up for a bank account with the bank in questions, and in many cases you will receive cash for each referral that you make and the person that you refer will also receive a cash incentive for joining. Not all banks operate this sort of incentive, but it is worth checking to see whether you bank does offer this or a similar incentive scheme.

Tags: savings, earn, bank, customers, transfer, interest, current, accounts