Martin Lewis, the consumer champion, has urged account holders to consider switching bank accounts to take advantage of what he describes as "very exciting and lucrative" offers that could be worth up to £600. He crunched the numbers on current deals, which include cash bonuses from several major banks.
Banks currently offering switching incentives include HSBC (£220), First Direct (£200), NatWest (£200), Barclays (£200), and Santander (£180). Notably, some packaged bank accounts—which typically come with monthly fees for added benefits like insurance—are now also offering switching bonuses, a rare development.
Packaged Accounts: Free Insurance with Switch
Mr Lewis explained that packaged bank accounts, which usually charge a monthly fee for extras such as travel insurance or breakdown cover, can be a "really good deal" for those who would buy those insurances anyway. He said: "Right now, we do have a few packaged bank accounts that are paying you to switch. So the amount they are paying you effectively covers that fee, so you are effectively getting the insurances for free."
By switching, customers could receive £500 to £600 worth of insurance at no cost, as the bonus covers the annual total of monthly fees. For example, worldwide family travel insurance costs £70-£100 annually, household mobile phone protection £75-£100, and UK/European breakdown cover £50-£100.
Current Packaged Account Offers
Three packaged accounts currently have switch offers:
- Santander Edge Explorer: £180 switching payment, £17 monthly charge (bonus covers fee for about 10.5 months).
- Co-Op Bank Everyday Extra: Up to £300 switching payment, £12 monthly charge (bonus covers fee for over two years).
- Nationwide Flex Plus: £175 switching payment, £18 monthly charge (bonus covers fee for nine months).
A standout feature of the Nationwide Flex Plus is its worldwide travel insurance with no age restrictions, unlike rival accounts. One couple in their 70s with health conditions praised the account, saying they paid extra for coverage but still considered it a "great deal." They received £600 compensation for missed ports on a cruise, with the money arriving "very quickly" and no paperwork needed. They said: "More than covered our additional premium. Highly recommend."
Who Benefits Most?
Mr Lewis noted that packaged accounts are especially good for families with teenagers and smartphones (due to mobile phone cover) or older couples and families needing travel insurance, which can be expensive. He said: "Suddenly the cost of the packaged bank account is the same as you'd pay just for the travel insurance, never mind that you get the mobile phone cover and the breakdown cover on top."
