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Switching banks: not as much of a hassle as you’d think, and definitely more rewarding than many realise.
If you need to know how the current account switch service (CASS) works, check out our guide here – but essentially, it’s free, it’s regulated and your money is protected. It also only takes about a week to complete – and given the ongoing battle between banks and building societies for your custom, several will offer you rewards to move to them.
The attractive headline amount of £175 to switch is, of course, a lovely bonus – but always make sure you know what else the bank offers to ensure it suits your needs, whether that’s local branches, access to high-interest rate savings accounts, a great app or anything else.
There are fewer options on offer than in previous months, to note, with Nationwide’s offer closing at the end of March and TSB’s at the end of February.
First Direct: £175
An ongoing offer with first direct and still the best one on the market at present.
Opening a 1st Account with them earns you a cash reward of £175, but you can’t have had an account with them before or an HSCBC account since 2018.
Additionally, you could get a fee-free £250 overdraft and access to a regular saver account that currently offers a hefty 7 per cent interest rate – fixed for 12 months – and in which you can save a maximum of £300 per month. Assuming you put in the maximum on the first day of each month, that would earn you about £136.50 in interest across the year.
As tends to be the case with most cash switch offers, to claim the reward you must open the account, switch using the CASS, including at least two direct debits and deposit at least £1,000, within 45 days of opening it. There are other requirements too such as making at least five payments on your debit card and logging onto their digital banking service.
NatWest: £150
While Lloyds and others have now removed their offers, NatWest is back in town with a £150 switch offer to open a Reward account – and you can earn more over the year from it too.
There are several levels of Reward account offering different experiences and having different costs, but the basic Reward bank account costs £2 per month to have open and you can earn £5 a month from it by having two direct debits and logging into the app. That additional £3 a month profit means an extra £36 a year in your pocket, so, in total, after one year it offers £186 to switch.
You also get Rewards in cashback terms from spending with certain retailers and there are other basic benefits included, such as round-ups, cardless withdrawals and more.