A NUMBER of banks are handing out free cash when you switch your current account – and you could bag yourself as much as £225.
Four banks are offering payments to new customers but there are also plenty of cashback offers and high interest rates for savers.
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Either way, new offers are launched regularly as banks try to compete for customers, so keep an eye out.
Switching accounts can be an easy win, but remember to check all the terms and conditions related to an account so you’re not caught out.
Meanwhile, don’t just switch for the cash boost – make sure an account works for you and offers you what you need.
For example, some accounts require you to pay in a certain amount a month to maintain them. Others charge you for setting up an overdraft.
Here’s a full list of offers available now.
Halifax
- £150 cash, plus up to £75 cashback, cinema tickets and magazine downloads
Halifax has launched a new switching incentive and customers have until August 31 to snap it up.
You can earn £150 free by signing up to the bank’s New Reward or Ultimate Reward current account.
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The money is then paid within three working days of completing the switch – it will show up as “Cash Credit”.
Plus, you can earn £25 in cashback when spending £750 or more on one of the new Halifax debit cards each month.
If you do this for three months, you will receive £75 cashback – when combined with the £150 this adds up to £225 in total.
You can also receive either £5 cash back each month or a choice of other benefits including cinema tickets or magazine downloads when monthly criteria is met.
You meet the monthly criteria either by spending £500, keeping £5,000 or more in your account each day of the month and paying in £1,500 or more into your account each month and keeping your balance above £0.
You have to pay a £3 monthly fee to maintain the New Reward card, unless you deposit a minimum of £1,500 or more in each month.
Meanwhile, the Ultimate Reward card has a £17 monthly fee, although it does come with a host of benefits including travel insurance, vehicle breakdown cover and mobile phone insurance.
TSB
- £200 cash, instant access savings paying 2.52% AER
TSB has launched a new switching incentive worth £200 for new customers.
You can get £125 by September 30 after setting up at least two direct debits, using your debit card at least once and logging into internet banking.
The remaining £75 is paid into your account by March 31, 2024, if you pay at least £500 into the account each month as well as five debit card and two direct debit payments each month.
One perk of making the switch is that TSB’s Spend & Save and Spend & Save Plus accounts come with instant access savings paying 2.52% AER variable.
Customers can also earn £5 cashback a month for the first six months of holding a Spend & Save account.
Those opting for the Spend & Save Plus account can get the same amount of cashback on an ongoing basis – so customers can earn £60 in the first 12 months of holding the account.
To earn the cashback you have to make 20 debit card payments each month.
NatWest and RBS
- £200 cash, up to £5 a month in rewards, 1% cashback on spending with partner retailers
Customers switching to the NatWest Reward or RBS Reward current account get £200 in cash and £4 a month so long as you pay out two or more direct debits for £2 or more.
You can earn an extra £1 each month you log in to the app.
You must switch from a different bank, deposit £1,250 into your account and log into the mobile banking app within 60 days.
You’ll get the £200 after seven days. The account charges a £2 a month fee.
NatWest, RBS and Ulster Bank also offer current accounts with no fee and you’ll still get the £200 cash, just not the cashback and rewards.
First Direct
- £175 cash, access to a savings account paying 7% and an interest-free £250 overdraft
Switch using the Current Account Switch Service, deposit £1,000 within three months to get £175 free cash.
Given all the criteria is met, you’ll receive the bonus within 28 days.
You can only benefit from the offer if you’ve never had any sort of account, loan, mortgage or other First Direct product.
If you’ve opened a current account with HSBC on or after 1 January 2020, you also can’t apply.
New customers to First Direct only, who have not previously held a first direct product.
The account offers access to a linked savings account paying 7% interest on the first £300 saved every month.
That is more than double the best easy access savings rate, currently on offer from Yorkshire Building Society which pays 3.6%.
Nationwide
- No free cash, earn 5% on your balance for the first 12 months, interest-free overdraft for 12 months
Nationwide’s FlexDirect account is online so you won’t be able to do your banking in a branch or over the phone, you’ll need to use the website or app.
If you have money in your account, the 5% interest rate is better than the best buy savings rate so well worth it.
It’s paid for the first 12 months on balances up to a maximum of £1,500.
If you’re eligible you’ll get an interest-free overdraft for the first year.
After that you’ll be charged interest at 39.9%.
If you’re quick you can earn 5% cashback up to £10 on supermarket shopping until April 30.
Santander
- No free cash, 1% cashback on household bills paid by direct debit and essential spening up to £10 a month
This account has a few catches – there’s £3 a month fee and you’ll have to pay in £500 at least every month.
You’ll also need a minimum of two direct debits set up on the account.
There’s exclusive access to a linked savings account that pays 4% interest.
Chase Bank
- No free cash, 1% cashback on all spending for a year
American bank Chase came to the UK relatively recently.
The generous 1% cashback on absolutely everything you spend on your debit card is designed to woo new current account customers.
If you open the current account you’ll automatically get access to a linked savings account paying 3.1%.
You can also set up a round-up rule in the app which is an easy way to start saving.
Every time you spend on your debit card, say to buy a pint for £3.59 the account will automatically round up to the nearest pound and put that 41p in a round-up pot paying 5% interest.
How to switch current account
By far the easiest way to switch banks is to use the Government’s Current Account Switching Service.
You’ll usually need to use this to qualify for a bank switching bonus.
After you choose an account, apply and ask your new bank or building society to switch your account using the service.
All your standing orders and direct debits will be transferred over and you can start using your new account in seven days.
Everything is handled by the banks so you don’t have to do anything.
You can still use your old account until the switch is completed.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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