TSB has launched a bank account switching incentive, offering new and existing customers £200 cash.
Under the deal, customers who switch to a TSB Spend & Save or Spend & Save Plus current account will receive £200, paid in two instalments.
New customers will receive £125 if they open an account and then switch to TSB using the Current Account Switch Service (CASS) before 31 August 2023.
TSB customers with Spend & Save and Spend & Save Plus accounts could win a £1,000 prize
They will also need to set up at least two direct debits, use their debit card at least once and log into the TSB mobile banking app to get the first instalment paid into their account.
A further £75 will be paid into their account by 31 March 2024 if they keep their account open and each month pay in at least £500, make five debit card payments and have two direct debits.
TSB is also offering customers the chance to earn an extra £5 cashback each month for the first six months with a Spend & Save account.
For Spend & Save Plus, the same cashback is available on an ongoing basis – so customers can earn £60 in the first 12 months, albeit the Plus account comes with a £3 monthly fee.
However, there is also another hoop to jump through for this. Customers must make 20 debit card payments each month to earn the cashback.
It’s worth noting that if a customer has received an incentive or benefit for switching to TSB Bank using the CASS since 1 October 2022, they’re not eligible for this offer.
How does it compare?
TSB is facing stiff competition from a number of other banks, including NatWest, RBS which are also offering £200, as well as First Direct offering £175 and Lloyds Bank paying £150.
Unlike with TSB’s offer, NatWest and RBS’ offer comes with very few hoops to jump through to be eligible for the £200.
People need to apply online or via their mobile app, and switch a current account held elsewhere into a NatWest or RBS account. This can be the free Everyday account.
They then need to deposit £1,250 into their new account and log into their mobile banking app within 60 days.
NatWest will pay £200 as a switching incentive. Joiners need to deposit £1,250 into their new account and log into their mobile banking app within 60 days.
When they meet these conditions NatWest will pay £200 into the new account within seven days.
Switchers can either opt for NatWest’s or RBS’ Reward account or Everyday account.
NatWest’s Reward account gives customers an extra £4 per month if they set up two direct debits, and an additional £1 each month for logging on to online banking, totalling an extra £60 a year. RBS similarly fives an extra £4 per month cashback for setting up two direct debits.
However, both accounts also come with a £2 monthly fee. The Select accounts have no monthly fee, albeit without any extra cashback either.
Similarly with First Direct, there are very few hoops to jump through to bag the bonus offer.
Customers just need to pay in at least £1,000 within three months of opening the account to recieve the £175.
Customers opening a First Direct current account receive a £175 cash bonus if they pay in at least £1,000 within three months.
First Direct also offers up to £250 interest-free overdraft, access to a market-leading regular savings account paying 7 per cent and now fee-free use of its debit card abroad.
TSB does also offer the fee-free use abroad, but only when using its £3 monthly Spend & Save Plus current account.
While offering a lesser £150, Lloyds Bank might arguably be a better option than TSB’s deal as well. Albeit the offer ends on 17 July.
Those switching to the Club Lloyds account can choose from a range of ‘lifestyle benefits’ each year, which if used can be a real money saver.
There is a £3 monthly fee to maintain the account – but this is waived each month as long as account holders pay in £2,000 or more.
Account holders can chose either 12 month Disney+ subscription, a choice of six Vue or Odeon cinema tickets, a magazine subscription, or a Coffee Club and Gourmet Society membership.
Lloyds Bank has a £150 switcher offer – for new customers switching from another bank to a Club Lloyds Bank Account before 17 July.
The Disney+ subscription could save someone £79.90 a year. Equally an adult Vue cinema ticket will typically cost around £11 or £12. That could make for a cash saving of £72 on cinema tickets over the course of the year.
Club Lloyds also pays interest on in-credit interest – something which is quite rare at the moment.
On the first £4,000 it pays 1.5 per cent and then between £4,000 and £5,000 it pays 3 per cent. It’s not possible to earn interest on any part of a balance over £5,000.
Taken together, account holders can therefore earn up to £90 credit interest per year if they hold a minimum of £5,000 in the account at all times.
Cash isn’t always king
Ultimately, people should avoid being blinded by the switching incentive. Cash freebies are not the only factor people should be looking at when considering a new bank.
There are plenty of other perks often on offer, such as in-credit interest. Nationwide, for example, offers 5 per cent to new joiners on balances up to £1,500 while digital bank Kroo pays 4.1 per cent on balances up to £85,000.
Cashback is another perk offered by some accounts. For example, Santander’s Edge account offers cashback on both debit card spending and direct debits, with up to £20 per month available, although there is a £3 monthly account charge.
On top of that, and perhaps more importantly for some, there is the bank’s customer service to consider.
To help you decide, check out This is Money’s review of the best bank accounts available right now.
THIS IS MONEY’S FIVE OF THE BEST CURRENT ACCOUNTS
Chase Bank will pay £1% cashback on spending for the first 12 months. Customers also get access to an easy-access linked savings account paying 3.1% on balances up to £250,000. The account is completely free to set up and is entirely app based. Also no charges when using the card abroad.
Nationwide’s FlexDirect Account offers 5% in-credit interest to new joiners when they switch on balances up to £1,500. This rate only lasts for one year. The account is fee free.
HSBC Advance account is offering £200 when you switch. You’ll need to start your switch, including at least two Direct Debits or standing orders, within 30 days, and pay in £1,500+ within the first 60 days. There is no monthly fee to maintain the account.
First Direct will give newcomers £175 when they switch their account. It also offers a £250 interest-free overdraft. Customers must pay in at least £1,000 within three months of opening the account.
NatWest’s Select Account account pays £200 when you switch. The account has no monthly charges, but to be elligible for the £200, you’ll need to deposit £1,250 into the account and log into mobile banking app within 60 days.
