The best cash bonus deals for switching current accounts
UK banks and building societies are handing out hefty cash bonuses to entice customers to switch accounts, with Nationwide among the sweetest offers.
The building society recorded 54,347 switches between April and June, largely driven by its £200 switch incentive.
Its Fairer Share scheme, which offers a one off bonus payment of £100, was also seen as key to Nationwide winning and retaining customers.
Andrew Hagger, personal finance expert at Moneycomms, said: “Nationwide is bossing the switching war, the combination of switching bonuses and the Fairer Share loyalty payments appears to be a recipe for success.”
New banks also recorded a wave of new customers, with fintech darling Monzo leading the charge, through its refer a friend deal which offers between £5 and £50.
Christmas cash
Some providers are now offering cash incentives, nearing or reaching £200, to encourage customers to make the swap before the festive season.
TSB is granting a £180 bonus, through £150 upon switching and up to £10 per month in cashback over three months.
Its Spend and Save Plus account also comes with an £100 interest free overdraft and up to £60 cash back over the first year, offsetting the £3 fee.
Nationwide is also working to keep high customer inflows, offering £175 within 10 days of making the switch, while its Flex Direct current account pays 5 per cent interest on up to £1,500 in savings and up to £60 cash back in the first year.
First Direct is also offering a £175 cash bonus, with a £250 interest free overdraft and access to a savings account paying 7 per cent interest.
Tread carefully
Alistair Douglas, chief executive of Totally Money, is warning that not all deals are as good as they look on the surface, urging customers to check fees and other conditions, including on Lloyds’ £200 bonus.
He said: “The Club Lloyds and Premier Accounts come with a £5 and £15 monthly fee which will quickly eat into the bonus.
“It’s worth noting that you won’t be eligible for this offer if you received a bonus for switching to Lloyds, Bank of Scotland or Halifax Bank in the past five years.”
Similarly, Barclays is handing out a £200 cash bonus, coupled with an Apple TV+ subscription, however it does have some drawbacks for high earners.
Douglas said: “Just remember that the Blue Rewards account will cost you £5 per month, so it’s best to only switch if you feel you can get the best value from it.
“And if you earn more than £75k a year, or you have at least £100k in savings with Barclays, they’ll pay you £400 to switch.”