Fed up with your bank? Now could be a good time to switch… as you can get up to £200 for doing so.
Banks are locked in a fierce battle to attract customers into moving their accounts to them.
NatWest is the latest to join the ‘switching wars’. NatWest’s offer of £200 makes it the best in terms of free, upfront cash.
For all the bonuses, customers must move from a rival bank using the current account switch service (CASS).
This guarantees things go smoothly. Direct debits are automatically moved over but you do have to close the old account. There are normally other criteria such as paying in a certain amount every month.
NatWest is the latest to join the ‘switching wars’. Its offer of £200 makes it the best in terms of free, upfront cash
The move by NatWest comes after the number of people using the switching service plummeted to just 65,976 in January – after a record number of 157,376 in November.
Rachel Springall, finance expert at website Moneyfacts, said: ‘It’s exciting to see such generous free cash switching incentives launched on the market at a time where consumers may well be looking for a cash boost.’
She said NatWest is a good choice generally, and for those willing to pay £2 a month for the bank’s Reward account, customers can also look forward to earning extra bonuses throughout the year. This can top £60 annually.
Alternatively, its free Select option also includes a £200 boost if £1,250 is paid into the account and the NatWest banking app is used within 60 days.
Lloyds Bank is currently offering a £200 switching sweetener for those moving to its Platinum or Silver current accounts.
Both options have their own bundle of incentives which feature European or worldwide travel insurance and AA breakdown cover.
These do have monthly fees but can be offset by the sign-up bonus.
The Platinum and Silver account offers end on March 7.
Lloyds Bank is currently offering a £200 switching sweetener for those moving to its Platinum or Silver current accounts
NatWest’s sister banks, RBS and Ulster, have similar offers. First Direct is offering £175 for those who switch and TSB will pay £125 with a Spend & Save account which also pays £5 cashback monthly. That deal ends on March 3.
Ms Springall says: ‘All of these options are worth exploring in- depth before starting the switching process – the right account depends on someone’s individual circumstances. Switching offers don’t tend to stay around for long. A good example is the Santander £200 free cash offer which ended recently.’
Santander ended this incentive after just two weeks. HSBC and Nationwide shut down switching offers in December, too.
Customers who decide to move accounts will do so for a variety of reasons. This could be due to a poor level of service or their existing account is not working hard enough for them to stay. On the flip side, customers who are struggling financially may see a free cash incentive hard to ignore, particularly as it is quick and simple to switch bank accounts using CASS.
As with any current account, it is imperative that consumers choose an account carefully, weighing up all the benefits and charges, and don’t get swayed by the upfront cash alone.
