If you’ve had the same current account for years, you could be missing a trick. Switching bank accounts has long been a quick and easy way to pocket free cash.
These offers come and go according to market conditions, competition, and appetite to attract new customers.
But now could be the perfect time to go for it as four major banks are offering new customers free money worth up to £175.
Below, we list the best deals and how you can take advantage of them.
Barclays
- Up to £175 free cash
The current switching offer with Barclays means new customers can get up to £175 by switching from their current bank to a Barclays Bank Account or Premier Current Account.
You’ll also need to sign up to Blue Rewards where you pay £5 a month and get access to enhanced rates on savings, cashback on everyday spending and an Apple TV+ subscription.
The rewards scheme also gives you an MLS Season Pass subscription, you can earn up to 15 per cent cashback with participating retailers and get up to 5 per cent interest on your savings with a Rainy Day Saver.
When you’ve made the decision to switch to Barclays, you must make sure to so using its app and the switch must include at least two active Direct Debits. The final step is to pay at least £800 into your new Barclays account by 30 August 2024 to qualify for the free £175.
Alternatively, if people want to switch to Barclays Premier current account, they will also get the £175 switching bonus.
However, it is only available to customers who have a Barclays current account. Importantly, they will either have to pay in a gross annual income of at least £75,000 or have a total balance of at least £100,000 in savings or investments, or a mix of both.
First Direct
- Up to £175 free cash and a £25 Amazon voucher
First Direct is offering a £200 bonus – £175 cash and the remaining £25 in the form of an Amazon voucher – as well as a 7 per cent interest rate on savings.
New customers who switch their everyday savings account to a First Direct 1st account can benefit from this offer.
To secure the welcome bonus, customers must complete the switch using the Current Account Switching Service. This attractive incentive is available to new customers switching from banks such as Santander, TSB, Lloyds, NatWest, Barclays and Nationwide.
But it’s bad news for HSBC customers – you’re only eligible for the switching offer if you aren’t switching from HSBC and haven’t opened a HSBC current account since 2018.
The deal ends on Sunday 21 July. With this deal, you also get a top overseas debit card, and many will be eligible for a £250, zero per cent overdraft.
Lloyds Bank
- Up to £175 and a 12-month Disney+ subscription or cinema tickets every year
Lloyds Bank is giving a £175 cash bonus to anyone who switches to one of three current accounts from a different bank.
Its offer is only available to customers who switch to a Club Lloyds, Club Lloyds Silver or Club Lloyds Platinum current account.
Customers must switch from any current account to Lloyds by 30 July 2024 to avoid missing out.
They’ll then need to move at least three direct debits to qualify for the cash bonus, which will be paid within ten working days of the switch starting.
Customers can also choose one of the following rewards:
- Disney+ free for a year – a saving of £79.90
- Six cinema tickets
- Coffee Club and Gourmet Society membership
- Magazine subscription
But there’s a catch as the Club Lloyds Bank Account comes with a monthly fee of £3 unless you pay in at least £2,000 every month.
The Co-operative Bank
- Up to £160 – £100 upfront and £60 across six monthly payments
The Co-operative Bank earlier this week announced the launch of a brand new £160 current account switch incentive.
It’s available for a limited time only to new and existing customers who are looking to switch to the bank’s Everyday Extra account. The bank will credit £100 to eligible accounts within 40 days of the completed switch and £10 per month for six months after the initial switching bonus is paid.
To qualify for the initial switching bonus and subsequent monthly payments, newbies must meet the eligibility criteria, and terms and conditions.
After completing a full switch to the Everyday Extra account, customers can also enjoy a host of benefits including mobile phone insurance, worldwide travel insurance, and UK & European breakdown cover for just £15 per month.
Customers cannot have benefitted, or be waiting to benefit from, a switching incentive from the bank since November 1, 2022. They also must register for online banking, have two active Direct Debits or standing orders set up on the account, deposit £1,000 into the account, and make five card transactions.
How do I switch bank accounts?
Most banks and building societies use the Current Account Switch Service (CASS) to help you switch accounts.
Under the Account Switch Service Guarantee, your new bank will switch your payments and transfer your balance for you, while your old bank will close your old account.
The Guarantee also means that any payments accidentally made into your old account will automatically be redirected to your new account, and the payee will be informed of your new bank account details. Should anything go wrong with the switch, you will be refunded any interest lost and charges incurred.
Here is a step-by-step guide to switching current accounts:
1. Compare and choose your new bank account – find one that works for you.
2. Apply for your selected bank account. You can usually do this online, but some providers also let you open accounts at a branch, over the phone or by post. You’ll also have to complete a Current Account Switch Agreement form and a Current Account Closure Instruction form, which will be provided by your bank or building society.
3. Choose your switch date – you must allow at least seven working days for the switch to take place, and the switch can’t be made on a Saturday, Sunday or Bank Holiday.
4. Start using your new account.
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, told i: “Using the Current Account Switch Service is an efficient way to move bank accounts, plus, the service will take care of any payment arrangements up until the seven working days before an agreed switch date.
“The current account market has seen the return of a few free cash offers over the past month, and these can come and go depending on when banks and building societies want to draw in new customers, or indeed when they expect consumers to be actively looking to move their deal.
“Consumers hoping to switch their current account may wish to consider the latest offers, but they must not be swayed by a free cash boost alone and instead, ensure the new account suits their everyday banking needs.”