Another day, another current account switch offer to consider, as Lloyds relaunches its £200 deal – one of the most lucrative deals when it comes to up-front cash.
At the same time, though, Brits have been served a warning that one of their favourite switch offers is being withdrawn in the next week, so you need to move fast to snap it up.
Current account switch offers are commonplace to get consumers to move banks or building societies, which, aside from the bonus cash, can be great to get access to better savings rates, local branches or higher levels of customer service than your existing brand offers.
There are usually a couple of hoops to jump through, but they are generally painless, and Lloyds’ latest offer is no different.
To get the £200 switch bonus, you have to use the free Current Account Switch Service to shut your old bank and open a Club Lloyds account, moving at least three existing direct debits as part of the switch (such as a household bill, phone contract, and so on). Once your new account is open, you have to spend £100 on your debit card within 35 days, then within 45 more days you’ll get the cash bonus.
There are three types of Club accounts you can choose from, but note that they come with a fee of between £5 and £22.50 a month.
For some people, that fee might be “earned back” by using extra perks you get with the account, such as a Disney+ subscription, a Coffee Club discounts scheme and additional interest earned on balances.
Lloyds’ offer lasts until 30 April, but it’s possible it could be withdrawn earlier if enough people use the switch.
Meanwhile, another cash switch offer is coming to an end far sooner, and it has been the most popular one among Britons for the last year.
Nationwide has been offering £175 plus a range of other ongoing benefits when you switch to the building society, but if you were planning to do so and hadn’t got around to it yet, you’ll need to get your skates on. Switches need to have been started by 4 March to be eligible for the bonus.
In addition to the initial cash, you’ll get 5 per cent interest paid on your balance (up to £1,500) for the first year, 1 per cent cashback on spending and access to a 6.5 per cent saver, if you move to the Flex Direct account, one of three options at Nationwide for the offer.
Nationwide also has a habit of paying out additional money to its customers under the Fairer Share scheme, though this isn’t guaranteed.
And if you can’t make the switch in time before 4 March, you shouldn’t immediately feel you’ve missed the boat, as bank switch offers typically come and go, and previously this building society has offered even more up front.
NatWest and Barclays are also running deals aimed at different areas of the market at present, but TSB’s appears to have been withdrawn, and Danske’s is only for those resident in Northern Ireland.
Additionally, with Lloyds, it’s worth noting that you can get £500 for switching to another account type, Lloyds Premier, plus further cashback if you move over investments and ISAs, though the amounts involved will be prohibitive for many, says Kate Steere, banking expert at comparison site Finder.
“While Lloyds may be touting switch incentives of £500 and £1,200, the reality is that there are few customers who actually get that sort of cash boost,” she explained. “The £500 bonus is reserved for its Lloyds Premier account, which requires you to pay in £5,000 a month or have £100,000 in qualifying savings or investments.
“The same issue applies to the savings switching deal. To get the headline £1,200 in cashback, you would need to deposit a whopping £200,000 or more. The better deal - and the most attainable - is still the £200 for the Club Lloyds account.”
Meanwhile, The Independent understands that contrary to some reports, Lloyds Bank customers will still be able to open new accounts and request some other services in-branch.
In more of a procedure change than a service stop, staff may direct customers to use services online or in the app in a continued push toward digitisation, but clients will still be able to solve their issues face to face. “For those that choose to visit a branch, our colleagues remain ready to help with managing money or opening accounts,” a spokesperson told The Independent.
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