But you can actually get something back by picking credit cards and current accounts offering financial rewards.
There are several credit cards available now which give you cashback or incentives when you shift existing debts onto them, or when you use them for purchases.
Many banks also offer generous financial rewards when you switch your current account.
Here’s our rundown of some of the best deals which could give your bank account a boost.
Make money when shifting your credit debts
If you’ve got debts languishing on a credit card charging you a hefty annual percentage rate (APR) you can not only make big interest savings by transferring your balance, but you could also pocket some cashback.
MBNA’s balance transfer card, for example, offers a generous 43-month introductory 0% period, giving you plenty of time to pay off what you owe, and pays you £20 cashback.
To qualify for the cashback, you must transfer £1,000 or more in the first 60 days of opening an account.
This deal has a 3.29% balance transfer fee, so you’ll need to factor this in before switching. When the interest-free period finishes, the card has a representative 18.9% APR (variable)*, so make sure you pay off what you owe within 43 months.
If you’d rather pay a lower balance transfer fee, and are confident you can clear your balance in a shorter period, Barclaycard’s 32-month balance transfer card, which also pays cashback, could be worth a look.
This card has a 3.5% balance transfer fee, but you’ll only pay 0.63% as Barclaycard refunds the difference (this offer only applies on transfers made in the first 60 days of opening an account). You’ll earn £20 cashback if you transfer a balance of £500 or more across onto the card.
This offer ends on 6th February, so you’ll need to get your skates on if you want to take advantage.
After the 32-month introductory period ends, the card has a representative 18.9% APR (variable)*, so again it’s important you clear your balance before then.
Get rewarded for your spending
You can also benefit from credit card cashback if you’re looking for a card to spend with.
The AA’s Dual credit card, for example, which offers 28 months at 0% on purchases and 18 months at 0% on balance transfers (on transfers made within the first three months), gives you £35 cashback when you spend £500 or more within 60 days of opening your account.
You must earn at least £8,000 a year to qualify for this card.
After the introductory periods finish, the card has a representative 18.9% APR (variable)* for both balance transfers and purchases. If you are moving a balance across onto this card, there is a 2.89% balance transfer fee.
If you’re happy to earn rewards rather than cashback, Sainsbury’s 29-month purchase card is currently offering a bonus 5,000 Nectar points if you spend at least £250 in a Sainsbury’s store in the first month after opening your account. This deal ends on 26th March 2017.
The card has a representative 18.9% APR (variable)* on both balance transfers and purchases, and you’ll earn two Nectar points for every £1 you spend on Sainsbury’s shopping and fuel with the card, and one Nectar point per £5 spent elsewhere.
In order to keep the 0% and introductory rates, you will need to stay within your credit limit and pay the minimum monthly payment on time.
Earn cash when you switch your current account
You can bag £125 when you switch your current account to TSB’s Classic Plus account via MoneySuperMarket, and you’ll earn 3% annual equivalent rate (AER) (variable) on balances up to £1,500, as long as you register for internet banking and pay in £500 a month.
To get the cashback, you’ll need to apply for the account via MoneySuperMarket by 27th February, 2017. Your switch has to be completed by 31st March, and must include at least two active direct debits. You must also pay in £500 within 28 days of switching.
You not only get cashback when you switch, but the TSB Classic Plus Account offers you the chance to earn 5% cashback on your first £100 of contactless payments made every month until 30th September 2017.
First Direct’s current account also offers a £125 switching incentive. Again, this deal is exclusive to MoneySuperMarket, so you won’t find it anywhere else, and you’ll need to apply by 27th February.
To be eligible you’ll need to pay £1,000 a month into your account. This account doesn’t pay any interest if you’re in credit, but you can earn 5% AER (variable) from First Direct’s Regular Saver account, which you’ll qualify for if you have a current account with the bank.
If you can afford to fund your current account with £1,750 a month, then HSBC’s Advance Bank account will give you a cash handout of £150 and a six-month interest and fee-free overdraft when you switch to it. You must set up two direct debits or standing orders from your account.
You’ll get a further £50 payment after 12 months when you register for mobile or online banking with 60 days of opening your account.
Please note that you must use the Current Account Switching Service for all these current account deals in order to qualify for any offers. The bank you are switching to will provide information and support.
Terms and conditions apply to all accounts.
*Representative example: if you spend £1,200 at a purchase interest rate of 18.9% p.a. (variable), your representative rate will be 18.9% APR (variable).
All cards subject to status and terms and conditions. Over 18s, UK residents only.
Please note: any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.