Are you looking to boost your personal finances and land yourself some free money? Here's what you need to know.
Let’s face it, “free money” sounds about as real as winning a unicorn in a prize raffle. That said, many ways exist to earn free cash without resorting to questionable side hustles.
So whether you’re saving for a holiday, paying off debt, or just want to boost your finances, here's your guide to the world of legitimate free money hacks.
One quick word of warning. Always read the small print and check what you're doing, as there are lots of fake social media scams and sites that offer free cash-back. The main key to remember is you'll never get something for nothing. Free money comes from giving away your time, data, business or buying something.
Also, NEVER ever pay out anything to get more money back.
How to get up to £1000 of free money
Banks and savings accounts are the best way to land a hefty dose of free money, in one case as much as £1000 a year, much more if you save longer.
1. Individual saving accounts:
The first product to know about is the LISA - Lifetime Indvidual Savings Account, which offers up to £1000 a year of free money.
Anyone aged 18 or over but under 40 can open a Lifetime ISA (Individual Savings Account). You save up to £4,000 each year in this ISA (part of your annual ISA limit of £20,000 a year), and the government will add a 25% bonus to your savings, up to a maximum of £1,000 per year.
If you save £4,000 a year with a LISA over ten years, you'll receive an extra £10,000 in free bonus money.
£4000 x 10 years = £40,000 saved
Each year, you'll receive £1000 as a bonus x 10 years = £10,000
Total saved: £50,000
It's a fantastic way to make a lot of free money, BUT bear in mind a few things. You can only withdraw money from your ISA (without losing the 25%) if you're:
- Buying your first home
- Aged 60 or over
Plus, you can only use the LISA and free cash to help you buy your first home if the property costs £450,000 or less.
2: Switching current accounts:
Changing current accounts is another way to make free money, sometimes up to £175.
That said, research from YouGov has found that over a third of us (35%) have had the same current account for over 20 years, fearing that switching will take too much effort. However, switching current accounts to access a free cash bonus is very straightforward. Thanks to the Current Account Switch Service (CASS), it's simple, and the switch typically takes seven working days to complete.
Your new bank will handle everything, including transferring payments, direct debits, and standing orders, and they will refund any fees or charges if anything goes wrong (e.g., a missed payment).
As for the best free money deals, First Direct is offering £175 free money to switch to their account. You'll get this within 45 days of your account if you deposit £1,000, make 5+ debit card payments, and log on to digital banking.
TSB is offering £160 to switch your account to them. Get £100 for switching, then earn £10 monthly cashback for up to 6 months! And if you stay until September 2025, you'll get to choose from:
- A night away for two at a wide range of hotels
- 2 cinema tickets each month for 3 months
- NOW TV membership for 6 months
If you switch before 14 March, they'll pay you £100 between 28 March and 11 April 2025.
Finally, Nationwide is offering £175 of free money to switch to its FlexDirect Account on current account balances up to £1,500 for a year and 1% cashback for 12 months up to £5/month when you pay £1,000+ a month. Terms apply to all new accounts.
How to earn free money
There are also plenty of ways to earn free money each month. Although these payments may not reach the £1000s like the LISA above, the following can still earn you hundreds of pounds a year.
1. Cash-back sites:
If you want to earn extra free money (as much as £300 a year), look for cash-back sites like Topcashback. These sites will give you cash-back rates on everything, such as home insurance, mobile phones, the latest iPhones and Samsung, and your favourite fashion and homeware brands.
Topcashback is the most popular UK cash-back site. It offers cash-back at most online retailers and gift cards for in-store purchases. Plus, right now, you can get a £10 sign-up bonus when you earn £10 in payable cash-back. Money is paid directly to your bank account, through PayPal, or via gift card.
Quidco is another fantastic cash-back site. They pay out cash but give up to 20% more if you agree to take the money in gift cards. They have 10 million members in the UK, and you can earn around £300 of free money annually.
Remember that the main caveat with these cash-back deals is always focusing on the price, not the cash-back.
You want to get the best deal possible, so do not choose something solely because of the cash-back; you may lose money.
For example, you can currently get 10% cash back at a high-street fashion brand with Quidco. So, if you buy a pair of jeans for £35 at this store, you'll get £3.50 back. Yet, this same brand offers 20% off with a voucher code, which means you'll save £7 on the jeans. In this instance, this is a better deal than the cash-back.
Bundling offers can also increase the free money you make on cash-back sites. For instance, Quidco has an 11.5% cash-back offer at LOOKFANTASTIC, but if you're a VIP member at Voucher Codes, you can get a £5 gift card (for every two shops here). There's also a discount code (not attached to the VIP programme) for 20% - meaning you'll make some free money and save money, too.
2. Cash-back bank accounts and credit cards:
Cashback credit cards pay you back a proportion of what you spend each time you use them. If you pay the card off in full each month, there's no interest to pay, and you can earn free money.
A word of warning though, these cards only really earn money if you can pay them off in full each month. Otherwise, the cash you get back will be eaten up by the interest charged on the remaining balance.
The amount of free money you can earn is usually around 1% to 5%, so if you use the card every time you go to a supermarket, fill up on fuel, or pay a bill, it could pay you back hundreds of pounds yearly.
The best card currently on the market is the AMEX Everyday Cash-Back card, which offers 5% cashback for three months (up to £125) and then 1%.
If you prefer a cash-back current account, Santander's Edge Account gives you cash-back on household bills and shopping. You can get 1% cashback (up to £10 a month) on selected household bills when you pay by direct debit and 1% cashback (up to £10 a month) at supermarkets and travel costs when you use your debit card. So you can make up to £20 a month or £240 of free money a year.
3. Refer-A-Friend promos:
The Refer-A-Friend programmes attached to many prepaid cards can also make you free money.
If you know someone with Monzo, use the Refer-A-Friend programme. You and your friend will receive a free £10 (as long as you sign up and make a card payment within 30 days).
If you have kids, the GoHenry Refer-A-Friend program is a way to make extra cash for your child. If your friend uses your link to sign up and activates their account and their child's card, you'll receive between £10 and £20 (depending on the current offer) in your account 60 days from the day they activate their account.
You can earn rewards for referring up to 10 friends per year. However, GoHenry charges a monthly membership fee of £3.99 per child (£47.88 a year). This means you'd have to refer more than six friends to earn money back.
Finally, Revolut has an interesting offer: It pays you £20 when you open an account, and if you refer a friend via a promotion sent to your app, you can earn anywhere from £10 to £200 (depending on the offer).
How to make money online for free
There are also various ways to earn free money online, but always check the site you're using and read the terms and conditions to safeguard yourself against scams.
1. Online surveys:
Online survey sites are great for making free money. Though be aware that you have to put in the effort to see a good payout. The amount of money you can make depends on the site, but on average, you can make about £10 per hour.
However, it's not guaranteed that all surveys will be right for you, and responses get declined if you don't fit the criteria the company is looking for.
That said, on most sites, you will be offered surveys that take anywhere from a few minutes to 30 minutes and are simple to answer.
Try Branded Surveys is one of the best online surveys, with an average payment of 50p to £5.00 per survey. It has a Trustpilot rating of 4.3/5.00 with over 76,000 reviews and excels at high payouts.
Swagbucks is another good survey and review site. The average earning is 40p to £3.50 per survey, and it has a Trustpilot rating of 4.2/5.00 with over 36,000 reviews
2. Switch energy suppliers:
The Energy Price Cap is going to rise again by 6.4% on 1 April. This means that for every £100 you pay for energy now, starting in April, you'll pay approximately £106.40. However, deals are returning, and it could now be worth switching if you want to earn some free money and free credit to your account.
Currently, the following are offering free credit, with USwitch offering £20 cashback on top when you switch:
- Octopus Energy: £50 free credit when you sign up
- So energy: £50 free credit when you're a new customer
- Bulb Energy: £50 credit and paid exit fees
- Switch suppliers with USwitch, and some deals give you £20 cashback once they verify your switch
Always use a price comparison site and ensure you'll save money when you switch suppliers. Otherwise, the payout won't be worth it.
3. Don't forget to claim free money at the airport:
Finally, the holiday season is around the corner, and there's a way to get some free money on your way home. As a UK resident, you are eligible for a VAT refund at the airport, whether you've had luxury hauls on a city break or splashed out on expensive souvenirs.
VAT rates in Europe are notoriously high, at 27%, but many holidaymakers miss out on this opportunity to claim a VAT refund simply because they think it's not very easy.
Each country has specific eligibility requirements for VAT refunds. In the following countries, your total value must exceed the following euros: France 100, Greece 50, Hungary 175, Italy 70, and Portugal 50.
Countries like Spain (there is no minimum value for VAT in Spain) will then reimburse between 12.75% and 15.3% of the amount you spend on products during your trip, subject to standard VAT rates. For example, if you went on a city break to Barcelona and spent £500 on clothes, you could receive as much as £75 back in free money.
If you travel to Dubai, you can reclaim 87% of the VAT paid. A fee of AED 4.80 (£1) is deducted per tax-free tag attached to each receipt, and the maximum cash refund allowed is AED 35,000 (£7500).
The best way to start your VAT refund is to ask the shop you're visiting about its policy. All well-known brands catering to tourists will have this process set up anyway. As you leave any country or EU member country, get your VAT refund form stamped at the last exit point.
You will then receive your refund either in cash or credited to your card,
If you want to know more about saving and making money, do look at our following posts: Voucher Codes Vs Cash-Back, The Ultimate Guide to Avios Points and How to Save £1000 in 10 Weeks.
All information in this blog is accurate as of the publish date, but please note that claims and details may change over time.
