Several high-street banks are offering cash bonuses of up to £175 to entice customers to switch current accounts, but some deals expire at the end of March. Nationwide, NatWest, First Direct and Lloyds are among the providers competing for new business with one-off payments.
Nationwide's offer of £175 for switching to a FlexDirect, FlexAccount or FlexPlus account runs until 31 March. Customers must transfer at least two direct debits, pay in £1,000 and make one debit card payment within 31 days. The FlexDirect account pays 5% interest and 1% cashback on card purchases for 12 months, while the FlexPlus account costs £18 a month but includes travel and mobile phone insurance.
NatWest is offering £150 for switching to its Reward account, which has a £2 monthly fee. Customers must deposit £1,250 within 60 days and can earn £4 a month for two direct debits and £1 for logging into the mobile app. The offer has no fixed end date but may be withdrawn at any time. Previous NatWest group switchers are ineligible.
First Direct provides £175 for opening a 1st account, requiring two direct debits or standing orders, a £1,000 deposit within 45 days, five debit card transactions and digital banking login. The account offers an interest-free £250 overdraft. The deal excludes previous First Direct customers and those who opened an HSBC current account since January 2018.
Lloyds pays £175 for switching to a Club Lloyds account, which has a £3 monthly fee (refunded if £2,000 is paid in monthly). Customers must move three direct debits and can choose a lifestyle benefit such as Disney+ or cinema tickets. The offer ends on 1 April and excludes those who received a switching payment from Lloyds, Bank of Scotland or Halifax since April 2020.
Rachel Springall of Moneyfacts noted that switching incentives fluctuate with business appetite. James Daley of Fairer Finance advised customers to look beyond the headline payout and consider the long-term value of the account, including fees and benefits.
