According to a recent round-up by Martin Lewis' MoneySavingExpert (MSE) team, there are currently four banks offering customers willing to switch from their current provider up to £200. All of these offers have strict criteria before anyone gets the payment, and one is set to close its offer very soon.
People could use their existing bank accounts to make the swap, or set up a 'burner account' just for earning switch bonuses. This tactic, recently highlighted by Martin Lewis on Question Time, takes a layer of worry away from people who do not want to mess about with their main account that could be used for paying bills or collecting wages.
Bank account holders should be aware that these switches may leave a search on their credit file. Those who have big financial commitments coming up, such as a mortgage application, may wish to hold off on making any big changes until that has cleared.
HSBC and Barclays lead with £200 offers
As of August 19, four banking brands are offering perks worth up to £200. One of the highest current payouts comes from HSBC with £220 in cash. The fee-free HSBC Bank Account simply asks that switchers deposit a total of £2,000 and spend at least £500 within 60 days of opening the account. Anyone who is not already an HSBC or First Direct customer and has not held a HSBC or First Direct current account since January 2023 is eligible to claim this bonus.
Two other banks are also offering new customers a £200 offer. The Barclays Bank Account offers a payment for switchers who open a sole account via the Barclays app and pay in at least £2,000 within 30 days, then set up at least two Direct Debits by August 27 (next Thursday). The Barclays account also offers customers access to the bank's £5-a-month Reward programme. One extra perk of this is half-price Apple TV access (normally £10/month) included in the optional membership. To earn the Barclays £200, customers must have held no previous Barclays switch bonus or had a current account with the brand "on or before June 9".
NatWest and First Direct offers
The NatWest Reward account is also offering a £200 switch bonus. As an ongoing perk, account holders who keep up with the £2 a month fee and pay in at least £1,250 a month, spend regularly with at least two direct debits and use the mobile app will earn £5 cashback every month (totalling £36 a year when subtracting the monthly fee). Joint accounts are allowed to claim this bonus, as well as sole holders, provided they have never claimed a bonus from NatWest, RBS or Ulster Bank previously, or held any NatWest account before May 6.
First Direct is offering a £175 perk and a £25 Amazon voucher to account switchers. Opening a 1st Account (which is fee-free) requires the cheapest pay-in of at least £1,000 from opening the account, as well as setting up (or transferring over) at least two direct debits. Customers must make at least five debit card payments (no amount specified) to earn the £175 payout. The criteria to claim the cash are that customers have never had any First Direct product before or opened an HSBC current account since January 2018. For the Amazon voucher, First Direct asks new customers to check their emails to claim their voucher within 120 days of opening the account (which must be kept open during this time).
