Legitimate ways to access free money and financial benefits

Many people are struggling with day-to-day expenses and living costs, so finding extra ways to stretch your budget can be a welcome bonus. We’ve created a guide on which banking apps you can start using and other things you can do to earn some extra money in your pocket.

1. Take advantage of sign-up offers from banking apps

   One of the easiest ways to earn yourself some free money is by signing up for an app, account or service. There’s a whole range of products that offer these sign-up bonuses, including bank accounts, investing accounts, pensions, cashback sites and money transfer providers. If you’re interested in a new product anyway then it’s an extra incentive to try it out.

   Some providers offer cash, while others offer gift cards, so make sure you know what you’ll receive. And obviously if the eligibility requirements are quite high, then focus on the ones that are more achievable to you. In some cases it’s just a matter of opening the account and putting some money in or making a purchase, while others have a few more hoops that need jumping through and might not be worth all the effort. Popular banking apps like Plum and Revolut often have welcome incentives and there are even banking apps for children that have sign-up bonuses that parents or guardians can take advantage of such as GoHenry and NatWest Rooster Money.

2. Receive money for switching banks or utility providers

   Switching a bank account through the Current Account Switch Service (CASS) is designed to be easy, but it can also be quite lucrative. Some banks offer hundreds of pounds to switch an account to them, which is the very definition of free, easy money. There are always a few things to keep in mind, such as how many direct debits you need to have on the existing account, how long the bonus money will take to arrive and if you need to deposit and hold money in the new account. The benefit of using CASS is your new account will still have all your incoming and outgoing payments from your old account, which makes the whole process seamless and stress-free.

   Current switching deals

   Below we have listed the latest switching deals on the market. This list is checked regularly and was last updated on 13 November 2024.

   • first direct – 1st account – Get up to £175
   • Santander – Everyday, Edge or Edge Up account – Get up to £150
   • Nationwide – FlexDirect, FlexPlus and FlexAccount – Get up to £175
   • The Cooperative Bank – Standard Current Account – Get up to £150
   • Lloyds – Club LLoyds, Club Lloyds Silver or Club LLoyds Platinum accounts – Get up to £200
   • NatWest – Reward account – Get up to £180

   For more information about how to switch, head over to our switching deals guide.

3. Check if you’re owed a tax rebate

   You might have paid more tax than you were supposed to and not even realise that’s the case. If you work more than one job or your employer has used the wrong tax code for you, HMRC might need to pay you back.

   To check if you’re owed a tax rebate, you can look on HMRC’s website and fill in an online form. Technically you’re only getting your own money back here, but it’s still money you wouldn’t have had if you don’t check.

4. Referring friends to popular apps and services

   Many companies have refer-a-friend bonuses to get new users of their products. They work in much the same way a sign-up bonus works, but you and the person you refer can both benefit from them, rather than just you. This can be in the form of cash, vouchers, shares, unlocking better features or reduced fees for a given amount of time. At the time of writing, popular banking apps like Revolut, Tide and Monzo all have refer-a-friend programmes. If you love using a product and think a friend or family member would also love it, you can both benefit with a referral.

5. High-interest current and savings account

   If you haven’t heard about inflation in the last few years then you’ve not been paying attention. But essentially the value of any money you have in your bank account is eroding each year because of inflation, so it’s important to find an account that pays higher than the rate of inflation. Thankfully, many do.

   The way they work is that any money you put in the account starts to earn interest, which is usually paid monthly or annually, depending on the account type. Essentially free money just for depositing in that account. The best part about earning interest is when it starts to compound, which is when the interest you earn in one month is added to your balance and that interest earns interest the next month. One popular current option for many is the Kroo current account which currently pays 3.85% interest AER on your balance. Chip and Plum are also popular for easy-access savings accounts with both regularly running sign-up promotions.

   Another factor to consider here is whether it’s worth opening an ISA, which is a tax-free savings account. There are a range that pay competitive interest rates and the best part is you don’t pay any tax on your earnings.

   High interest offers

   Below we have listed a number of accounts that come with an interest rate or offer exclusive access to a linked savings account. This list is checked regularly and was last updated on 13 November 2024.

   • TSB – Monthly Saver Account – Access to 6.00% AER/gross fixed interest monthly saver
   • first direct – 1st account – Access to a 7.00% AER/gross interest Regular Saver Account
   • NatWest – Digital Regular Saver – Access to 6.17% AER/6.00% gross on balances up to £5,000 with a Digital Regular Saver account
   • HSBC – Advance Bank Account – Access to a 5.00% AER/gross HSBC regular saver account
   • Lloyds – Club Lloyds Monthly Saver – Access to a 6.25% AER/gross fixed interest monthly saver account
   • Nationwide – FlexDirect Account – Access to a 6.50% AER/gross regular savings account
   • Santander – Edge – Access to a 6.00% AER/5.84% gross (variable) interest savings account on balances up to £4,000. This includes a 1.50% AER/1.49% gross (variable)/ bonus rate for the first 12 months from opening
   • Chase – Current Account – Access to a 3.50% AER/3.45% gross variable interest Chase saver account
   • Virgin Money – M Plus Account – Access to 2.5% AER/2.48% gross on balances up to £25,000 with a linked M Plus Saver account

   For more information about how to access these accounts, head over to our high-interest offers guide.

6. Open a bank account with a cashback offering

   A lot of bank accounts pay you cashback for your spending. While we wouldn’t recommend spending more just to earn cashback, if you’re already spending the money anyway then it’s a nice little bonus for you to get cashback.

   Some accounts pay a set rate of cashback up to a certain amount, like Chase, which pays 1% cashback up to a total of £15 a month. Other accounts like Monzo have a random selection of cashback offers, some useful and some not so useful. So be sure to choose the account that best suits your spending.

7. Open a lifetime ISA

   Lifetime ISAs (LISAs) are tax-free savings accounts. You can deposit up to £4,000 a year in one and the government gives you a top-up on your money, equal to 25% of what you pay in. So if you max out yearly your allowance, you’ll receive £1,000 from the government. You’ll also earn interest on top of that money.

   The catch? With a LISA, you can only withdraw your money without penalty if you’re over 60, buying your first home (must be under £450,000) or terminally ill. If you withdraw for any other reason then you’ll pay a 25% penalty on the total amount. So you’ll end up losing money.

   They can be a good savings mechanism, but make sure you understand the rules before you open one.

8. Be more efficient with your pensions

   Alright, you won’t get this money any time soon unless you’re close to retirement age, but any money you put into your pension will receive tax relief from the government. And if that grows and compounds over a long period of time, it’ll be worth a lot more in the future than it is now.

   As with a LISA above, this is more of a long-term play, but can end up being the most lucrative if you can afford to be patient.

9. Use cashback sites, plugins and apps when shopping

   Cashback sites, as the name suggests, let you earn cashback when you’re shopping. They have deals that let you get a percentage of your spend or set amount of money when you purchase something. This can come in really handy when you make a big purchase, such as a life insurance policy or breakdown cover.

   Basically, when you want to buy something, you can look if a cashback site has a deal for that product. Then you click the link on the cashback site, which takes you to another site to complete your purchase. It gets tracked and you’ll get cashback added to your account. You need to be patient though, because it can take months for you to get paid, so it’s not a quick way to get cash. There are also plugins that will automatically find valid offers.

   A word of caution. Sometimes purchases don’t track properly, so you need to keep a record of what you’ve spent and lodge missed claims afterwards. You should also make sure you read the T&Cs of each offer, as cashback can get rejected if you don’t follow them.

   You should also decide whether you’re better off using a promo code that might give you a smaller discount or take a chance that the cashback will track correctly later down the line.

   These sites often have plugins or apps to make the process smoother, so it could be worth you using them.

10. Sign up for competitions

    You can win money, vouchers or experiences from competitions and usually all you need to do is fill in your details then wait to hear about your winnings.

    There are so many competitions available across social media, product packaging, supermarket magazines, TV, radio, rewards apps and newsletters.

    While there’s no guarantee you’ll make much or any money doing this, it could be something to look out for. There are people who dedicate a lot of time to this and in return win lots of money or other prizes. Gotta be in it to win it, right?

11. Sign up to popular loyalty cards

    Loyalty schemes often come with discounts and incentives for customers to earn extra points, which can then be spent. If you shop enough using any loyalty scheme you’ll accrue points, but the way to really maximise your point earning is by taking advantage of bonus point offers. They usually offer a much higher earn rate than the standard rate and depending on the offer, could boost your point balance significantly.

    It’s not worth just buying something just to get extra points, but if there’s an offer available on something you would normally buy then it’s a win-win.

12. Use receipt scanning apps

    There are a number of apps that let you earn money or vouchers just for scanning your receipts.

    The way they work is they use the data from your shopping and then sell it on to other companies. It’s similar to how loyalty schemes work, but the data is collected and sold to third parties.

    It might not be for everyone and you don’t have to share any personal information, but if you don’t mind companies knowing what you spend your money on then this could be another way to pick up a few quid on the side, just by scanning your receipts.

Bottom line

There are lots of ways to earn some extra money if you know where to look. If you’re really savvy you might be able to earn extra money in more than one way at the same time, for example you could use a sign-up bonus to join a cashback site, then make a purchase using your card that pays cashback and scan your receipt into a receipt scanning app. With the money you make from all of that you can put that into a savings account or pension and earn interest on it, plus any applicable government bonuses. It could turn it into quite a lucrative, fun side hustle.

Written by

Jason Loewenthal

Senior writer

Jason is a writer and editor. He worked as a senior subeditor for Finder for 5 years and in that time became familiar with a wide range of financial products and services. Before that, he worked for Australian Associated Press. He has a BA from Macquarie University in Australia. Jason loves to help other people find new ways to save money. See full bio