People looking to switch current account may also be able to get their hands on a cash windfall in time for Christmas.
Several current account providers have launched free cash offers to entice new business, but not all of them may not be around for long, financial information website Moneyfactscompare.co.uk said.
Nationwide Building Society recently launched a £200 free cash offer, Lloyds Bank has launched a £175 free cash deal and TSB has a £150 offer.
Free cash offers often come and go, with NatWest recently withdrawing a £200 cashback deal.
However, first direct continues to offer a £175 cashback deal, which was launched over a year ago, Moneyfacts said.
The right current account does depend on someone’s individual circumstances, so it's important consumers are not swayed by free cash alone, albeit tempting in the run-up to the festive season— Rachel Springall, Moneyfactscompare.co.uk
Switching offers will depend on certain terms and conditions being met, which are set by individual providers.
Starling Bank also recently announced an offer of 3.25% AER (annual equivalent rate) credit interest, on balances up to £5,000.
Several providers offer cashback perks on spending, such as Chase, Halifax, Lloyds Bank, Santander, the Co-operative Bank and Virgin Money.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said: “Current account providers have launched some enticing perks for customers looking for a new bank account, with some free cash of up to £200 on offer up-front.
“Consumers who switch using the Current Account Switch Service (Cass) have a variety of free cash perks to choose from, but there are alternative accounts offering some attractive benefits elsewhere, such as cashback on spending, high credit interest or a competitive overdraft tariff.
“The right current account does depend on someone’s individual circumstances, so it’s important consumers are not swayed by free cash alone, albeit tempting in the run-up to the festive season.”
The cost-of-living crisis continues and a free cash boost could make a big difference, but it’s vital customers pick the right current account that suits their everyday needs— Rachel Springall, Moneyfactscompare.co.uk
Ms Springall added: “Those looking to maximise the interest and cashback they earn could look towards Santander, which does not currently offer a switching cash perk, but customers who put £1,500 per month into their Edge Up current account can earn 3.50% AER interest on balances up to £25,000.
“The account also provides some enticing perks, such as cashback on selected spending and bills, but it is worth noting they will need to pay a £5 per month fee.”
Ms Springall said the past few weeks have been a popular time for current account providers to enhance their offers, as customers may be looking at ways to maximise their budget in preparation for the festive season.
She said: “The cost-of-living crisis continues and a free cash boost could make a big difference, but it’s vital customers pick the right current account that suits their everyday needs.
“Customers could consider opening more than one account to suit different needs too, they just need to make sure they meet any eligibility criteria to earn any perks.”
