How to Earn Thousands in 'Free' Money by Strategically Opening Financial Accounts
One writer details a six-month strategy that yielded over £3,000 by leveraging bank switching bonuses, referral offers, and investment platform incentives without personal capital risk.
A personal finance writer has detailed a method for generating significant 'free' money by capitalizing on financial incentives offered by banks and investment platforms. Over six months, the strategy reportedly yielded £3,066 without requiring any of the individual's own funds to be at risk.
The approach involved accepting 26 different offers from financial institutions, including banks, building societies, and DIY investment platforms. These offers commonly include 'switching bonuses' for opening new current or savings accounts, with some high street banks providing up to £300.
The writer opened numerous cash Isas, savings accounts, and current accounts, alongside joining several share trading apps and applying for credit cards. Each new account or service often came with a sign-up bonus, such as free shares or cash gifts. These bonuses were often amplified by referring family members and friends, who also received incentives and provided the referrer with additional bonuses.
Funds earned from these bonuses were frequently deposited into a stocks and shares Isa. The writer noted that in many cases, accounts were closed shortly after receiving the bonus. The total earnings from this strategy amounted to £2,785.57, with an additional £280.43 generated through investment returns.
A key aspect of the strategy is that the funds used to meet offer requirements were never at risk, and the interest earned was not compromised. Furthermore, most of the earnings are tax-free as they are not classified as income or interest.
Daily Commitment and Organization
Successfully implementing this strategy requires approximately 15 minutes of daily effort and a high degree of organization. The process involves opening multiple accounts, managing share transactions, and sharing referral codes. While some bonuses are awarded instantly, others require jumping through specific hoops and can take time to materialize.
To manage the influx of offers and track progress, the writer maintained a spreadsheet. This record detailed ongoing deals, necessary steps, and expected bonus payment dates. The spreadsheet also proved useful for tax return purposes, as while most referral bonuses and cashback are not taxable, certain offers may be considered bank interest.
Finding and Pursuing Deals
Research is essential for identifying these lucrative offers. Journalists and other individuals actively seeking these deals often share their findings online through websites like This is Money, and social media platforms such as Reddit and Facebook. Communities like the 'Beer Money UK' subreddit are dedicated to sharing daily deals and referral codes.
Investment Strategy
To house the earnings and track progress, a dedicated bank account was established. The writer chose Monzo, specifically its stocks and shares Isa, into which all earnings were transferred. The writer made a commitment to invest all funds received, regardless of stock market fluctuations. Investing during market downturns, such as during the Iran conflict, proved psychologically easier when the invested capital was not personally owned. The funds were invested in Monzo's 'adventurous' fund, a MyMap multi-asset fund, which saw a 9.49% increase, contributing £280.43 to the total earnings.
Notable Offers and Platforms
Among the most significant earnings was £400 from Interactive Investor, secured by transferring a Self Invested Personal Pension and referring a spouse for a savings account. Other platforms provided free shares in companies like Rolls-Royce, Berkshire Hathaway, and PayPal, which were promptly sold, with profits added to the investment fund.
Some offers require specific actions, such as depositing a minimum sum for a short period. For instance, a £30 bonus from Monument required a £10,000 deposit, which was later returned to a flexible Isa after the bonus was received within 24 hours.
Specific Opportunities
Several accounts offer straightforward bonuses for new customers. Chase Bank provides £50 instantly upon opening an account with a referral code and a £1,000 deposit, which can be withdrawn immediately after.
Trading 212 offers a free share worth up to £100 upon opening an investment account and depositing £1. Both referrer and referred friend receive a free share upon account opening.
Zopa's Biscuit current account offers £10 for signing up via a referral link, in addition to 2% cashback on utility bills. Users can also earn £10 for each of ten referrals.
Nationwide offers new members £175 for switching to a current account and placing £100 in a savings account, with potential for an annual £100 bonus for existing customers who meet certain criteria.
Santander's Stocks and Shares Isa offers £75 cashback through sites like Topcashback or Quidco after investing £100 for three months. Investors can opt for low-risk money market funds to avoid stock market volatility.
It is important to ensure that financial institutions are regulated by the Financial Conduct Authority and have Financial Services Compensation Scheme (FSCS) protection. For banks and building societies, deposits are protected up to £120,000 per person or £240,000 for joint accounts. Individuals considering mortgages or loans should be aware that frequent bank switching could impact their credit score.