Six major UK banks have confirmed bonus payments for customers who switch their current accounts. Customers at a string of UK banks, including major chain banks with branches in Birmingham, are set to receive bonuses for switching. Cash bonuses are a regular perk offered by banks seeking to attract new customers. The banks currently offering such incentives include Barclays, First Direct, Santander, NatWest, Nationwide, and Bank of Scotland.
Money Saving Expert, the site founded by BBC and ITV star Martin Lewis, said: "Banks often offer switch incentives – usually free cash, sometimes boosted savings rates or other perks – to get you to open an account and switch from a rival. Always check the requirements carefully. If you miss a step you won't get the bonus."
The Current Account Switch Service (CASS) moves your balance, Direct Debits and standing orders across, and closes your old account. To switch, open a new account with your chosen bank and request the switch during the application. As long as both banks are signed up to CASS, it will all happen automatically.
Santander - £180
New and existing Santander customers can nab themselves £180, in addition to a £25 Amazon gift card, when switching to eligible current accounts. Customers using CASS to switch to a Santander Everyday, Edge, Edge Up, Edge Explorer, or Private (v2) current account can qualify for the new £180 switcher offer. Gail Russell, Head of Everyday Banking at Santander UK, said: "We're pleased to introduce our latest switching incentive, offering even greater value to customers looking to join Santander. Not only can they take advantage of this additional reward in time for summer, but they can also benefit from free cash withdrawals abroad and no foreign currency conversion fees with our Edge account range – ideal for the holiday season. It's a simple, straightforward way to get rewarded for switching while enjoying the benefits of our popular current accounts."
First Direct - £200
The latest update from First Direct sees it increase its switching incentive to £200 on its 1st Account for customers who switch using CASS. As with many switching offers, customers must fulfil certain criteria to be eligible. The account does not charge any monthly fees and offers a £250 interest-free overdraft buffer, though the rate rises to 39.90% EAR if this buffer is exceeded. Customers seeking credit interest may be disappointed, but the account comes with a linked regular saver fixed for 12 months. Overall, the account earns an Outstanding Moneyfacts product rating.
Barclays - £200
To get the £200 bonus for switching to the Barclays Bank Account, you needed to apply by 28 May. However, until 31 July, you can get 5% cashback (max £10/month; paid within 2 working days) when you buy £5+ of petrol or diesel at a Tesco forecourt using the debit card (including via digital wallets, not PayPal or Curve). Excludes Esso stations linked to Tesco stores. Barclays Mortgage has made amendments across several variable and fixed rates. One deal to see a refresh is the two-year variable tracker option for all borrower types; despite a small 0.05% rise, it continues to feature prominently in Best Buy tables at 4.06%. The deal is available at 60% loan-to-value with a £999 product fee, offset by free valuation for all borrowers, while remortgage customers can also benefit from free legal fees or £250 cashback.
NatWest - £200
NatWest is offering £200 upfront and then £36 a year cashback. The NatWest Reward pays £5 cashback each month you pay in £1,250+, pay out 2+ Direct Debits of £2+ and use its mobile app. Factoring in the £2/month fee, that's a net gain of £36/year. There's also a 5.25% variable linked regular saver. Mr Lewis said: "Here you can put up to £150 a month into it, but rather than only lasting a year, you can keep saving up to a maximum of £5,000 (this takes ~3 years if you save the max each month). So, if you can leave your money untouched for longer, this can be lucrative."
Nationwide - £175
Nationwide is offering a free £175, plus 5% interest on up to £1,500 for a year, 1% cashback for 12 months, 6.5% regular saver and a £50 0% overdraft. Mr Lewis said: "With Nationwide FlexDirect, on top of the free £175, most will get 5% in-credit interest on current account balances up to £1,500 for a year (maxed out that's £75) and 1% cashback for 12 months up to £5/month when you pay in £1,000+ a month. Plus, many get a £50 0% overdraft too. You also get access to a linked regular saver paying 6.5% variable interest for a year on up to £200/month (maxed out that's £84/year interest)."
Bank of Scotland - £175
MSE said: "The only notable perk of the Bank of Scotland Classic is its linked regular saver at 5.5% fixed for a year on up to £250 a month. But as there's no minimum pay-in or spending requirements, it's a good choice if you just want a simple switch."
