Another bank has joined the trend of using 'free money' to try and attract customers to switch to them, with NatWest being the latest to offer a cash reward. More and more banks are offering people specific deals and even £100s in cash offerings to try and get customers to leave their current provider and join them.
According to Money Saving Expert, four banks are currently offering (legal) cash bribes to tempt you over, including NatWest's newly launched £200. And with the cost of living crisis showing no signs of slowing down and it being easier than ever to change banks, perhaps now is the time to take advantage.
Switching is now fairly quick, with all payments, direct debits and standing orders moved over for you, and your old account automatically closed. Taking just seven working days to complete, there's nothing stopping you - especialy when there is free money on offer.
In their weekly newsletter MSE explains the standard requirements, which are usually being a new customer, pass a not-too-harsh credit check, and use the bank's official switching service. Crucially, the accounts you're switching between must be from different banking groups.
Read more: Martin Lewis issues advice on how to avoid huge 14% mobile phone bills rise in April
So what banks are currently offering incentives to switch?
NatWest
NatWest have launched a £200 bank switch incentive, with people also able to get £36 a year cashback and a 6% regular saver. According to MSE, in terms of upfront free cash, this is the clear winner and is payable when you switch to a range of its current accounts.
In order to qualify for the £200 you must open either a NatWest or RBS Reward or Select accounts and switch. You must also pay in £1,250+ once and log in to the app within 60 days from the date you opened the account. The cash will be paid within seven days of doing all that. You won't qualify if you've had switch cash from NatWest, RBS or Ulster since October 2017. Find more details on different accounts on the NatWest website.
First Direct
According to MSE First Direct gives a free £175, 7% regular saver, plus many get a £250 0% overdraft. In addition to the free cash, people switching to First Direct's 1st Account get access to a 7% linked regular saver you can put up to £300 a month in. Many also get an ongoing £250 interest-free overdraft, though whether you'll get it depends on your credit history.
In order to qualify for the cash you must open the account, switch and pay in £1,000+ within three months. The free cash is then paid within 28 days. You won't get it if you've ever had any First Direct account before (including savings and credit cards), or have opened a current account with its sister bank HSBC since January 2020. Find more details on different accounts on the First Direct website.
TSB
TSB pays £125 upfront, £75 in November, plus £5 a month cashback for six months. TSB's Spend & Save account offers £125 upfront for new customers, then pays an extra £75 later in the year if you've met certain conditions. You can also get £5 a month cashback if you use the debit card 20+ times a month for the first six months. Plus there's a linked 5% AER regular saver, where you can save up to £250 a month.
To qualify for the £125 you must open the account by March 3, then before March 24: switch, have more than two direct debits, spend at least once using the debit card, and log on to mobile banking. Do all this and the £125 will be paid by April 21. To get the extra £75, every month from April through September, spend on the debit card five times, pay in more than £500 and have more than two direct debits. Do all this and the extra £75 will be paid by October 31. You won't get either payment if you've had switch cash from TSB since October 2022. Find more details on different accounts on the TSB website.
Lloyds
Lloyds is offering £200 but only if customers switch to a specific account. Switch to a Lloyds Silver account and you get £200 free cash, which can be left in your account to pay the £10 monthly fee for the first 20 months.
The account gives you family travel insurance covering trips in Europe (including the UK), nationwide roadside breakdown cover, and worldwide mobile phone cover for the account holder(s). However, this insurance is more limited than many other packaged accounts, so do check it's right for you. Find more on Lloyds silver here.
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