Martin Lewis says having a 'spare' current account could unlock a string of cash bonuses without disrupting your everyday banking.
The Money Saving Expert founder is urging savers to consider opening a dedicated "burner bank account" purely for switching deals, allowing them to pocket lucrative cash bonuses without moving their main current account.
Speaking on his latest podcast, Lewis said there are currently eight bank accounts paying at least £175 to switch, with some offering even more value through perks such as travel insurance, mobile phone cover and breakdown assistance.
He told listeners: "It's a bank account bonanza. Eight accounts are currently paying you over £175 to switch."
Why Martin Lewis says everyone should consider a 'burner' bank account
Many people avoid switching because they worry about moving their salary, direct debits and household bills.
Lewis says that doesn't have to be the case.
Instead, he recommends using a secondary current account purely for switching incentives, leaving your everyday banking untouched.
He explained that experienced switchers often move the same spare account from bank to bank, collecting bonus after bonus.
The tactic allows people to take advantage of new offers while avoiding the hassle of repeatedly changing their main account.
Some accounts effectively give you insurance for free
Lewis said this year's switching market is particularly attractive because some packaged bank accounts are also paying cash incentives.
These accounts usually charge a monthly fee but include benefits such as:
- Worldwide family travel insurance
- Mobile phone insurance
- UK and European breakdown cover
Normally customers would pay for those benefits through the monthly account fee.
But Lewis explained that current switching bonuses can effectively wipe out those costs.
He said: "Packaged bank accounts rarely have switching bonuses... right now, we do have a few packaged bank accounts that are paying you to switch."
He added: "The amount they're paying effectively covers that fee, which means you're getting the insurances for free."
Why now could be one of the best times to switch
Banks regularly launch switching incentives to attract new customers, but the number of generous offers available at the same time is unusual.
Lewis described the current market as a "bank account bonanza", with opportunities for people willing to switch strategically.
Some seasoned switchers have earned thousands of pounds over several years by moving between different providers as new offers appear.
The key is making sure you meet each bank's eligibility criteria, which can include paying in a minimum amount each month or switching a set number of direct debits.
Is switching safe?
Many consumers still worry they'll lose payments or miss important bills.
However, the Current Account Switch Service is designed to move payments automatically and offers a guarantee if anything goes wrong.
Lewis also pointed to research suggesting the process is far easier than many people fear.
He said: "86% of people who switch bank accounts said it was easy and hassle-free."
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Don't forget the small print
Not everyone can claim every switching bonus.
Some banks exclude existing customers or anyone who has previously received a switching payment within a certain timeframe.
Before opening a dedicated switching account, it's also worth checking whether multiple applications could temporarily affect your credit file if you're planning to apply for a mortgage or other borrowing in the near future.
For many households, though, Lewis believes the rewards far outweigh the inconvenience.
As banks continue competing for customers, a spare "burner" account could prove one of the easiest ways to earn extra cash this year.
