Lloyds Bank has announced a new initiative that will see many of its customers receive at least £250 in free cash, with some potentially receiving up to £5,000. The banking giant revealed on Thursday, June 11, that it is launching its first ever pension transfer cashback scheme, available to both new and existing customers.
How the scheme works
Customers will receive up to £5,000 for transferring and consolidating old pensions into their Lloyds Ready-Made Pension (RMP) and Lloyds Self-Invested Personal Pension (SIPP) between now and November 30, 2026. To qualify, customers must open or hold a Lloyds personal pension, and a Lloyds, Halifax or Bank of Scotland current account must be held or opened during the offer period and remain open until May 31, 2027, for the cashback incentive to be paid.
Transfer requirements
Customers must transfer at least £20,000 from one or more pensions using the online transfer application. If customers make separate eligible transfers into an RMP or a SIPP, cashback will be calculated on the combined value of those transfers. To qualify for cashback, the transferred benefits must stay invested in customers' Lloyds RMP and/or SIPP until May 31, 2027. Cashback will be deposited into customers' Lloyds, Halifax or Bank of Scotland personal bank account by June 30, 2027, subject to terms and conditions.
Cashback amounts
The amount of cashback customers receive depends on the total value of eligible pension transfers when their transfer(s) complete:
- £20,000-£49,999: £250
- £50,000-£99,999: £500
- £100,000-£249,999: £1,000
- £250,000-£499,999: £1,500
- £500,000-£999,999: £3,000
- £1,000,000-£1,999,999: £4,000
- £2,000,000 or more: £5,000
Prior to initiating any transfer, customers ought to familiarise themselves with the significance of comparing charges, or risk losing guarantees or features. Pensions are subject to investment risk and cannot ordinarily be accessed before the minimum retirement age, Lloyds added.
Manuel Pardavila-Gonzalez, Managing Director - Investments at Lloyds, said: "It is common for people to build up several pension pots over the course of their careers, which can make it harder to keep track of savings or understand the charges they are paying. Our personal pension aims to make it easier to bring those pots together in one place, giving customers a clearer view of their retirement savings. Bringing pensions together can also help them take a more active role in managing their money, making it simpler and easier to plan for retirement, with our cashback incentive making the process even more rewarding."
