Two of the UK's leading high street banks, Nationwide and NatWest, are currently offering a £175 cash bonus to new customers who switch their current accounts. These lucrative deals, highlighted on the popular consumer website MoneySavingExpert.com (MSE), provide a significant financial incentive for people looking to change their banking provider.
How Bank Switch Deals Work
As explained by MSE, the website founded by ITV money expert Martin Lewis, banks frequently use cash incentives to attract new business. These offers, often referred to as 'switch bribes', are a strategic move to not only gain a new customer but also to take business away from a competitor. The promotions are typically available for a limited time, so potential applicants are urged to act quickly to secure the bonus.
Nationwide's £175 Switching Offer
To qualify for the £175 bonus from Nationwide, you must switch to a FlexDirect account. The process requires you to open the account online (or switch into an existing FlexDirect account) and move over an account from a different bank, including at least two direct debits, within 28 days.
Furthermore, within 31 days of requesting the switch, you must deposit £1,000 or more and make at least one payment using your new debit card. The £175 bonus will be paid into your account within 10 days of meeting all these conditions.
This account also comes with additional benefits, including 5% in-credit interest on balances up to £1,500 for the first 12 months (potentially worth up to £75) and 1% cashback for a year, capped at £5 per month. It's important to note that if you have previously received a switch bonus from Nationwide, you will not be eligible for this offer, unless you are moving from a sole account you previously switched into a new joint account.
NatWest's £175 Switching Offer
Alternatively, NatWest is offering £175 to those who switch to its Reward or fee-free Select Account. The same bonus is available through its sister bank, RBS. To get the bonus, you need to open a new account and switch from a bank that is not NatWest, RBS, or Ulster Bank.
Within 60 days, you must deposit £1,250 or more and log in to the NatWest mobile banking app. The £175 will be credited to your account within 30 days of completing these steps.
If you choose the Reward account, which has a £2 monthly fee, you can also earn £5 cashback each month by depositing £1,250, paying out two or more direct debits of £2 or more, and logging into the mobile app. This amounts to £36 net cashback per year. The account also provides access to a linked regular saver with a 5.5% interest rate. You will not be eligible if you had an existing NatWest current account as of September 16 or have received a switch bonus from NatWest, RBS, or Ulster Bank before.
Is a Bank Switch Right for You?
While a £175 cash bonus is an attractive proposition, it's crucial to consider whether the new account meets your long-term banking needs beyond the initial incentive. Always check the full terms and conditions, including any fees and ongoing benefits, to ensure the switch provides genuine value for your personal finances.
