Santander has launched a new rewards credit card, offering a competitive 3% cashback offer on a range of everyday spending.

Customers can get the cashback by using the card on everyday travel, eating out, and takeaway spending for the first 12 months.

There’s no annual fee and no cap on the amount of cashback you can earn, making it a more attractive deal than some others on the market.

As well as the 3% cashback rate on the above purchases, users can earn 0.25% cashback on all other spending indefinitely.

In your second year after getting the card, the cashback rate on travel, eating out and takeaway spending falls to 0.25%.

The Santander Rewards credit card has a representative 24.9% APR (variable).

Jessica Sheldon, MoneyWeek's deputy digital editor, said: "Cashback can be a helpful reward if you were going to spend the money anyway, but with any credit card, always make sure you can pay off the statement balance in full by the due date."

How does Santander’s Rewards credit card compare to other cards?

Santander’s deal is directly competing with other popular cashback credit cards, like those from Chase, which offers 2% cashback up to £20 a month on certain expenditure,

While Santander’s cashback offer is competitive, it may not make sense for everyone.

The 3% rate is very generous, but remember that you only get this rate on two categories of spending in the first year and get the lower 0.25% on everything else.

That means you may earn more money by using cards paying lower rates of cashback.

The Lloyds Ultra card pays 1% cashback on all spending via the card for the first year.

For example, if you spend a total of £1,300 a month (assuming £100 on takeaways, £200 on travel, and £1,000 on everything else), you can expect £13 cashback with Lloyds. With Santander’s Rewards credit card, you’d get £11.50 back.

However, if you adjust the amount spent on these categories, the cashback available via the Santander card may rise.

For instance, if you spent £300 on travel, £200 on takeaways, and just £800 on everything else, the Lloyds Ultra card would pay £13 of cashback, but you’d get £17 with the Santander Rewards credit card.

Before you apply for a credit card with Santander, it is a good idea to look at which categories you spend the most on and work out if your travel and eating expenses are high enough to justify getting the card, or whether you may be better off with a different card.

Santander Rewards credit card: What can you get cashback on?

The Santander Rewards credit card pays 0.25% cashback on all spending for the first 24 months, but you can get a higher 3% rate on certain everyday travel and spending on eating out and takeaways for the first year.

The travel category includes things like buying petrol, diesel, or charging your electric vehicle. It also extends to public transport fares on trains, buses, and the London transport system, as well as taxi spending.

Meanwhile, the eating out and takeaway category includes spending at restaurants, coffee shops, and food delivered to you. Cashback earned is paid monthly.

On top of the cashback, the Rewards credit card can be used abroad without incurring any additional foreign exchange fees.

Unlike some other credit cards that offer cashback, there is no fee for the Santander card.

Who can open a Santander Rewards credit card?

To be eligible for the credit card, you must be a permanent resident of the UK and be over the age of 18.

You must also have a guaranteed annual income of £10,500 or more and have a good credit record. Acceptance for the account is subject to a credit check by Santander, which will determine whether you can be accepted and the maximum credit limit they can offer you.

You can only have one Santander Rewards credit card.

Is the Santander Rewards credit card worth it?

While the 3% cashback rate looks generous, few people will be able to get a truly significant cashback just from spending on travel, eating out and takeaways.

For example, if you commute to work every day and it costs around £10 per day, you will spend around £200 a month on travel. With the Santander card, you will receive 3% of this as cashback, which is just £6.

If you spend an extra £100 on eating out and/or takeaways a month, this will add an extra £3.

If you spend around £1,000 a month on everything else, you will receive 0.25% of this as cashback, or around £2.50.

Together, that means you will receive £11.50 a month in cashback. Assuming that your spending stays the same for a year, you can expect to receive around £138 for the period.

Whether or not this amount is enough to justify setting up a new credit card or shifting where you spend your money depends on your personal circumstances and the current perks you get from your accounts right now.

We compare the best cards for flight points and airline rewards in a separate article.

Fintech giant Revolut has finally received a full UK banking licence after a four-year tussle with regulators, meaning it can start offering current accounts, savings, loans and mortgages as well as business accounts.

It also means Revolut will be covered by the Financial Services Compensation Scheme (FSCS).

While its 13 million UK customers were previously able to deposit and spend money through the firm, Revolut was not yet technically a bank – instead, it was categorised as an Electronic Money Institution (EMI). It was granted a UK banking licence in 2024, but with restrictions.

But now that the British fintech has a full UK banking licence, Revolut is expected to shake up the market, adding competition to high street providers and other neo-banks like Monzo.

Monzo was recently listed as one of the most popular banks by the Competition and Markets Authority. But Revolut may look to compete as it looks to create over 1,000 jobs and is aiming for 100 million users by 2027, CEO Nik Storonsky said in September.

Storonsky, who is also the co-founder, said launching the UK bank “marks a significant moment in our journey.”

“The UK is our home market and central to our growth. We look forward to introducing a full suite of banking services to our millions of UK customers, bringing the same innovative experience we already provide across the rest of Europe. This is a vital step in our mission to build the world’s first truly global bank.”

For existing consumers, Revolut says the granting of the licence will not change anything immediately, with accounts and cards continuing to work as usual.

All accounts will be migrated to the new bank, a process which the firm expects to take “a few months”, and customers will be told how the process works.

For Revolut itself, having a banking licence opens up opportunities for it to expand its operations and offer new products to its customers.

In particular, it says the licence “paves the way for a wider range of services in the future, including lending and other products.”

Francesca Carlesi, UK CEO at Revolut, added that the licence will allow the firm to expand into a broader suite of products, including credit.

The granting of the licence was also celebrated by chancellor Rachel Reeves, who welcomed Revolut’s earlier commitment to invest £3 billion in its UK operation and create 1,000 more jobs.

Why was Revolut not a full UK bank?

Revolut was founded in the UK in 2015 and has since exploded in popularity across Britain and the EU.

In the UK alone, where the firm is headquartered, it has 13 million customers and recently achieved a valuation of $75 billion.

But despite its popularity, the fintech had been operating without a full UK banking licence as it sparred with regulators.

It first applied for the licence in 2021 and was given a restricted banking licence in 2024, which it has operated under since.

That began its “mobilisation phase”, allowing it to hold a maximum of just £50,000 in total customer deposits. Maturing out of this phase usually takes under 12 months, but the process dragged on until 11 March 2026.

These restrictions have now been lifted by the Bank of England’s Prudential Regulation Authority (PRA), which regulates lenders.

What will change now Revolut is a UK bank?

Now Revolut has received its UK banking licence, customer accounts will gradually be migrated to it.

They say that for existing customers, nothing will change immediately with the Revolut app and cards continuing to work as normal.

All existing customers will be notified about the migration process, which Revolut expects to take “a few months in total” as they move accounts in several phased batches.

As for new customers, the bank said on 11 March it will begin the process of rolling out current accounts “in a few days”, “starting with a small group and expanding over the coming weeks to ensure a smooth user experience.”

They note that customers signing up from 11 March 2026 onwards may still be onboarded onto an EMI account with Revolut Ltd instead of the full bank account. If this happens, the account will be migrated to the Bank at the same time as existing accounts.

It adds that Revolut Bank UK Ltd will be able to offer accounts for both retail and business customers.

Once the migration process is complete, customer cash will become protected by the FSCS, which shields up to £120,000 in customer deposits compensation for customers if a financial institution goes out of business.

Listen to our interview with Yana Shkrebenkova, CEO of Revolut Trading, on our podcast MoneyWeek Talks.

Barclays is offering new customers between £200 and £400 for transferring their current account.

The high street lender’s deal is the highest bank switching offer available on the market now. But in order to get the full £400, you have to jump through some hoops — and quickly.

The bank is also offering customers cashback via another incentive. Last month, Barclays launched a £500 cashback offer for ISAs, which you can still take advantage of, bringing the total potential rewards to a whopping £900.

While the £400 offer is attractive, you will need to have a lot of money in your account to qualify.

We look at what’s on offer and if you’re eligible.

Barclays’ new switching deals explained

You may be able to get anywhere between £200 and £400 from Barclays, based on which account you transfer your money to.

How to get the £200 Barclays switch offer

New customers can get £200 if they follow these steps:

• Open a Barclays Bank Account through the Barclays app.
• Join Blue Rewards for £5 a month.
• Complete a full switch, including at least two direct debits.
• Deposit a minimum of £2,000 within 30 days of opening the account.

Once you’ve followed these steps, you’ll receive the £200 in your new account within 28 days.

The only eligibility criteria here is that you must have at least £800 paid into the account every month.

The switching offer is only available until 27 November 2025.

With Blue Rewards, you can earn up to 15% cashback on everyday spending, better savings rates, and a free Apple TV subscription, usually worth £9.99 per month. Note that Blue Rewards has a £5 monthly fee.

How to get the £400 Barclays switch offer

New customers can get double the amount if they follow the steps mentioned below — but eligibility rules apply. You must:

• Open a Barclays Premier Current Account through the Barclays app.
• Complete a full switch, including at least two direct debits.
• Deposit a minimum of £4,000 within 30 days of opening the account.

Here’s the caveat, though. In order to be eligible for this account, you will need to have a gross annual income of £75,000 or have at least £100,000 in savings, eligible investments, or a mix of both.

Eligible investments include investment ISAs, SIPPs, or General Investment Accounts that are held with Barclays.

The switching offer is only available until 27 November 2025.

Are existing Barclays customers eligible for the bonus?

If you’re already a Barclaycard, mortgage or savings account customer, you can still get the £200 or £400 bonus by following these steps:

• Delete the Barclays app from your phone.
• Reinstall the app and register as a new customer for either a Barclays Bank Account with Blue Rewards or a Premier Current Account.
• Wait up to 48 hours for your new account to appear in the app.

If, for any reason, you’re unable to access your new account, contact Barclays for support.

Could you get £900 cashback from Barclays?

In September, Barclays launched a £500 cashback offer for customers who transfer their cash ISA to the high street lender.

There’s a caveat though: you can only get the full £500 if you transfer more than £100,000 to the new account. To do that, you’ll need to have a Barclays current account for the money to be sent to, and you must open it before 28 November.

While the £100,000 can come from multiple accounts, a few ISAs are excluded from the offer. This includes Lifetime ISAs, Help to Buy ISAs, and other Barclays ISAs.

After the transfer is successful, you’ll get the cash in your current account within 60 business days after 28 November 2025.

If you are eligible for both the £500 ISA transfer and the £400 bank switching deal from Barclays, you could get a total of £900.

Which Barclays account is better for me?

If you earn more than £75,000 or have at least £100,000 in savings or eligible investments with Barclays, it might be worth considering a Barclays Premier account, as it comes with a higher cash bonus and other perks.

We’ve broken down the deals on offer from both of the aforementioned Barclays accounts to help you compare.

Revolut will invest £3 billion and create 1,000 jobs over five years to help boost the UK’s financial services sector - all while it looks to also expand into at least 30 other markets and push for 100 million users. And while it still does not have a full UK banking license, could the platform’s ambition for growth be about to skyrocket?

The UK’s banking sector has been due a shake-up for many years now, paving the way for fintechs to sweep in and provide customers with a banking platform that is simple, attractive and modern.

And while the likes of Starling, Monzo and Chase have made reasonable noise, no one is shouting louder than Revolut right now.

This week, it did just that as the fintech opened the door to over a hundred VIPs at its new London HQ in Canary Wharf.

Its new home in the financial district stands out like no other, taking up four floors in the 14-story building, which you can’t miss with its green facade.

Speaking at its opening, chancellor Rachel Reeves said Revolut’s plans take total investment commitments from major financial services companies to over £110 billion in the space of a week, with Blackstone, Blackrock and Paypal added to the mix.

The wave of investments from financial services companies comes months after the government cut unnecessary red tape under the Leeds Reforms.

Reeves said the financial services sector in Britain is worth around 10% of economic output and creates 1.2 million jobs, adding that fintechs like Revolut will “help the country step up”.

“Ever since the financial crisis, our productivity has lagged behind our competitors, and I'm committed to changing that.” Around 98% of fintechs have a significant positive impact on productivity, according to Reeves.

“I am committed to ensuring that Fintech businesses, whether starting, scaling or listing, have the support that they need to succeed here in Britain,” she added.

Revolut’s growth

While Revolut’s UK growth is well underway - and with a sparkling new HQ - its CEO and co-founder, Nik Storonsky, adds that its ultimate goal is to expand to reach 100 million retail customers globally by mid-2027 and be in 30 new markets by 2030.

Storonsky, who is no stranger to Canary Wharf where he once worked at Starbucks over a decade ago, added that Revolut would aim to get a banking license in every country it wants to expand in, saying Revolut will “either get the bank license or just buy a bank”.

Founded in 2015, it now has 65 million customers worldwide, 12 million of which are in the UK.

Revolut is now investing $13 billion (£10 billion) over the next five years, to create 10,000 jobs globally. This includes funding in high-growth regions such as $4 billion (£3 billion) for the UK, $1.2 billion (£880 million) for its Western European hub in France, and $500 million (£375 million) to accelerate its operations in the US.

It is also driving further growth in the European market as well as in new markets across Latin America, Asia Pacific, and the Middle East.

Storonsky added that Revolut would compete with legacy banks in the regions.

“We've got a lot of scale, a lot of product people to develop, and a lot of data scientists. Local banks cannot really afford such investment in tech. So for us, we're innovating and we’re improving products all the time. Sooner or later, our products will be so much better compared to other banks in any country, so it's impossible to compete”.

Investing in Revolut

Fintech's exponential growth provides opportunities for investors, who are looking to tap into private companies. Earlier this year, the Scottish Mortgage Investment Trust, said it was investing in Revolut as the bank hit a $1 billion profit mark.

Revolut is also expected to launch an IPO next year, although this has not been confirmed, and may list on the Nasdaq as many companies continue to shun the UK stock market. We have seen a number of companies over the last year leave the UK stock market.

But its ultimate challenge is to get a full UK banking license, which is still in progress. In July last year, Revolut was granted a UK banking licence with restrictions. It is now in PRA's ‘mobilisation’ stage, which requires new banks to complete the build out of their banking operations.

Nationwide Building Society is offering customers £175 if they move their current account to the building society.

To claim the bank switching deal, customers must have started their application on or after 18 September, complete a full switch using the Current Account Switch Service (CASS) and not have benefitted from another Nationwide switching offer.

You must transfer at least two Direct Debits as part of your switch. Other automatic payments, like standing orders and recurring card payments do not count.

Once the application is approved and the account is switched, customers must pay in at least £1,000 and make one debit card payment within 31 days of account opening or applying to switch into an existing account.

The eligible accounts to switch to include the FlexPlus, FlexDirect, and FlexAccount current accounts.

Customers will receive the £175 payment within 10 days of meeting all the criteria.

Switching to Nationwide could put you in line for extra payouts if the building society continues distributing its £100 ‘Fairer Share’ payment, as it did in 2023, 2024 and 2025.

The building society says it intends to make its ‘Fairer Share’ payment annually, provided it would not be detrimental to its financial strength and is subject to board approval.

Tom Riley, director of group retail products at Nationwide, said: “It's never been more rewarding to be a Nationwide member and that’s why we want to help more people benefit by offering this switching offer.”

Which Nationwide accounts can you switch to?

To claim the £175 switching offer, customers must move to one of Nationwide's three main current accounts.

• FlexPlus: A packaged account that offers family travel insurance, phone insurance, and breakdown cover for a fee of £18 a month.
• FlexDirect: An online account that pays 5% interest for 12 months and offers 1% cashback on debit card spend up to £60. The account is fee-free.
• FlexAccount: An everyday current account with no monthly fee.

Customers are free to choose to switch to any of the three accounts and will still receive the £175 reward if they meet all other criteria.

Shares in Close Brothers were up by 20% on Monday. Lloyds was up by almost 8%. The rest of the banking sector was rising, too, as shareholders celebrated the decision by the Supreme Court that some of the wilder claims over mis-selling of motor finance should be thrown out.

It was a rare example of common sense from a body that, in its short life, has rarely shown any inclination to take the side of business. After the market closed last Friday, it rejected the bulk of the claims that millions of car-finance packages had been mis-sold because commissions paid to dealers and other middlemen had not been properly disclosed.

Car finance mis-selling decision

The judges decided, quite sensibly, that the motor trade has, to put it mildly, always been known for sharp practice, and anyone taking out a loan to buy a car should have checked the small print before signing on the dotted line. Given that the total bill for compensation could have run to £40 billion or more if earlier rulings in favour of the claims by the High Court had been upheld, it’s not hard to see why the City was pleased.

There’s just one catch. The Financial Conduct Authority is now proposing a more limited scheme that will compensate customers for commissions that were excessively high. It will pay out on average £950 to each driver, at a total cost to the banking system of between £9 billion and £18 billion. There is still going to be a huge bill for the banks and finance houses involved.

There are two even bigger problems. First, it will be yet another blow to the reputation of the banks. There have already been more than £50 billion in payouts from the mis-selling of personal protection plans on mortgages, and plenty of smaller examples where the main banks have been forced to pay compensation for both personal and small-business products where terms and conditions were not properly disclosed.

The car-finance scandal comes on top of more than 15 years where just about any product more complex than a current account sold by one of the major high street banks has turned out to be dodgy in one way or another. The banks are already facing huge challenges from the rise of new, app-based rivals that have better technology and are not burdened by the cost of hundreds of branches, and typically have far better reputations. If several million motorists are offered payouts for car-finance claims, it will only encourage the belief that everything the banks sell is some form of scam. It is hard to see how any business can thrive in the long term if its customers no longer trust it.

US-style mass consumer litigation

Next, it will only encourage yet more mass claims. It might have been hoped that the Supreme Court ruling would stop the trend towards class actions that has taken root in the British legal system. But if the regulator hands out £10 billion or more in payments, the claims-management industry – which, if we are being honest, probably has even more questionable standards than car finance – will be given yet another huge boost.

The UK is on a worrying path where we develop US-style mass consumer litigation – with all the costs and uncertainties that creates for business – but without US levels of productivity and innovation to make up for it. It is the worst of all possible worlds.

Any global investor looking at a British bank right now will conclude that, with a stagnant economy, there will be very little profit growth, and that it may well be stung for a few billion in compensation payments at any moment. It’s not a very attractive mix, and one that will make it harder to revive the fortunes of the City. In reality, there is almost no form of financial service that doesn’t involve some small print and commissions somewhere along the line. It will always be possible for law firms to argue that the terms were not properly disclosed, that customers didn’t know what they were signing, and that the commissions were too generous.

If the banks have to pay out over this, they will have to pay out again and again, until the whole industry is no longer viable. It would have been far better to stop the litigation when the Supreme Court threw out the bulk of the claims – and give the City a chance to recover instead.

This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.

Not all banks are equal, so it’s no wonder that Brits are compelled to switch accounts in search for something better.

That could be anything, whether it’s a bank switching offer with a lucrative cash bonus, access to a bank branch, higher interest rates or spending benefits.

The latest Current Account Switch Service (CASS) data shows that more than 12.4 million switches have taken place since the service launched in 2013, with over a million switches made in 2025.

We look at the most popular banks that customers switched their accounts to, what made them move, and whether you should switch banks.

Which were the most popular banks in 2025?

Nationwide again proved to be the most popular banking company that customers switched to between July and September. The building society amassed the highest net switching gains (41,450).

It was followed by Monzo in second place (9,934), and NatWest in third (8,731).

We’ve compiled a list of the top banks and building societies in terms of net gains in a table below.

Customer data from the Current Account Switch Service is published three months in arrears, which is why the data here is from July to September, and not October to December.

Source: Current Account Switch Service. Data shows the number of full account switches completed between 1 July and 30 September, 2025

Of the banks and building societies listed above, four have had cash bonuses for customers switching their accounts. This includes Nationwide, First Direct, NatWest and TSB.

Nationwide’s lucrative year-round offers, such as the £100 Fairer Share bonus, which it has offered for three consecutive years now, the Thank You bonus, and member-only savings products, may have proved attractive to a large number of customers.

Meanwhile, Monzo paid customers up to £50 to refer a friend, which may have driven its popularity.

Which were the least popular banks in 2025?

While a few banks gained new customers, a lot more lost out.

Santander saw the biggest losses (-19,989), as 42,609 switches were made from the high street bank, while it gained 22,620 new customer accounts.

In second place is Halifax with a net loss of -17,341, while Chase had a net loss of -7,623. Chase lost out on many customer accounts after axing its easy access saver rate.

In the table below, we list the banks that suffered from the highest net losses between July and September.

Source: Current Account Switch Service. Data shows the number of full account switches completed between 1 July and 30 September, 2025

Access to online or mobile banking was the most frequently cited reason for choosing a new account, mentioned by 44% of respondents. This was followed by better customer service (36%), attractive interest rates (34%), spending benefits (28%) and other benefits or features (28%).

It comes after more than £31 billion was left in savings accounts paying 1% interest or less, with savers being urged to switch to an inflation-beating savings account.

Should you switch your bank account?

Switching has now become easier than ever before. According to the Current Account Switching Service data, 93% of customers in the last three years were happy with the switching process.

If you use CASS, it takes seven days for the switch to complete. It makes sure that your direct debits, standing orders, and any new payments to your old account are transferred automatically, even after you’ve switched.

However, that doesn’t always mean that moving your money to another account will be the best option for you. It’s always best to consider the long-term value of a current account, like whether you’re getting better customer service, how much you’ll incur in fees or charges, and if you have access to physical branches.

Depending on the type of account you hold, your bank may already be offering better savings rates, travel perks, or spending benefits. So if you’re switching for the cash incentive alone, it might not be worth it in the long run.

We look at whether switching banks can affect your credit score in a separate piece.

Shareholders in the owner of TSB have approved the sale of the bank to Banco Santander, which owns Santander UK.

Sabadell’s investors voted in favour of the £2.65 billion cash sale of TSB to Santander yesterday (6 August).

The takeover will create Britain's third largest bank by share of personal current accounts, behind Lloyds and NatWest. It will add five million customers to Santander UK’s 14 million.

Santander beat rival bank Barclays to buy TSB, which also put in a formal bid.

The shareholder approval marks an important milestone in Santander’s acquisition of TSB. If it goes ahead, it will follow Nationwide’s takeover of Virgin Money, which completed last year.

Marc Armengol, CEO of TSB, said the announcement “represents the next exciting chapter for this successful business, as part of Santander Group, a highly regarded banking group. I believe this will prove to be an excellent fit for our loyal customers”.

TSB has previously been affected by a dip in profits, as well as a class action by so-called “mortgage prisoners”. In 2018, the bank suffered an IT meltdown, which left customers unable to access online accounts for several weeks. It was fined almost £49 million by the regulator.

Mike Regnier, CEO of Santander UK, said: "This is an excellent deal for customers combining two strong and complementary banks, creating one of the most substantial banks in the UK and materially enhancing the competitiveness of the industry.”

What does Santander’s takeover of TSB mean for customers?

Santander says it “intends to integrate TSB in the Santander UK group”, which means the TSB name could disappear from UK high streets.

Last month, Regnier said "we haven't made any decisions yet" but "we tend to use the Santander brand on the high street around the world".

There are no immediate changes for customers of either bank, in terms of how they bank or use or open financial products. However, as and when the deal goes ahead, there could be changes to products, branch closures and job cuts.

TSB has a nationwide network of 175 branches and outlets, while Santander has about 349 locations. Where there is both a TSB and Santander branch in the same town, Santander may decide to close one of them.

Santander announced in March the closure of 95 bank branches across the UK, putting 750 jobs at risk, as it focuses more on digital banking.

For now, it is business as usual as the two banks progress the deal. The transaction still needs regulatory approvals to go ahead.

Why is TSB being sold – and when will the deal be completed?

The takeover announcement means Santander has reached an agreement to acquire 100% of TSB Banking Group from Banco de Sabadell, with a valuation of £2.65 billion (about €3.1 billion) in an all-cash transaction.

If everything is agreed, the takeover will likely happen in the first three months of 2026.

Sabadell is selling TSB as it attempts to fend off a long-running hostile takeover approach from Spanish rival BBVA.

If the deal goes ahead, it will end months of rumours over whether Santander would pull out of the UK, sparked by reports that its Spanish bosses were frustrated by UK rules and the fallout from the car finance commission scandal.

Instead, Santander is further cementing its position in this country. Ana Botín, Banco Santander’s executive chair, said: "The acquisition of TSB represents a continuing strategic commitment to our customers in the UK, offering a compelling opportunity that is financially attractive to our shareholders and aligned with Santander’s long-term objectives.”

Santander has a track record of buying up British banking brands. Past takeovers including Abbey, Bradford & Bingley and Alliance & Leicester.

A sale would be the latest step in an eventful history for TSB. It was once owned by Lloyds, which was forced by the European Commission to spin off the business as a separate brand after Lloyds received a £20 billion government bailout in 2008.

TSB floated on the UK stock exchange in 2014 and was bought by Sabadell a year later in a deal worth £1.7 billion, marking one of the biggest cross-border banking deals since the financial crisis.

Nationwide is cutting the interest rates it pays on more than a dozen popular accounts, in what it says is a response to the Bank of England lowering the Base Rate in February.

From 1 June, Nationwide will lower rates by between 0.10 to 0.25 percentage points on specific savings products.

The majority will reduce by less than the change in Bank Rate, which was cut by 0.25 percentage points to 4.5% on 5 February.

However the interest rate on Nationwide’s Flex Instant Saver will be cut by the full 0.25 percentage points to 2.75%.

In an announcement on 2 May, Tom Riley, Nationwide’s director of retail products, said: “We have worked hard to limit the impact of the recent rate cut on our savers and have taken the decision to hold off from making changes for as long as possible.”

Rates on the Flex ISA / Flex Saver and other instant access savings accounts – for example Instant Access Saver, Easy Access ISA, and CashBuilder – will be cut by between 0.20 and 0.25 percentage points. Instant Access Saver 10 will see its interest rate dropped by 0.20 percentage points to 1.85%.

Most fixed access savings accounts customers are having their interest rates cut by 0.20 percentage points.

This includes the Reward Single Access ISA, Single Access Saver / Single Access ISA, Limited Access Saver / Limited Access Online Saver, e-Savings Plus and the Triple Access Saver / Triple Access ISA.

There will be no changes to Nationwide’s Children’s FlexOne Saver, Flex Regular Saver and Start to Save products.

Moves to cut savings rates will be less welcome than news Nationwide is paying millions of customers a £50 "Thank You" bonus to celebrate its takeover of Virgin Money.

Nationwide acquired Virgin Money in a £2.9 billion deal in October 2024, in the biggest UK bank takeover since the 2008 financial crisis, creating the UK's second-largest mortgage and savings group.

Nationwide is also hoping to pay millions of customers another Fairer Share payment this year, expected to be £100.

Which Nationwide’s savings accounts are changing?

Fixed rate savings accounts launched

Nationwide has been known for having some of the best savings accounts on the market, such as its former 8% regular saver.

Adding to its range, at the end of April, Nationwide launched a new Fixed Rate Cash ISA, Fixed Rate Bond and Fixed Rate Branch Bonds.

The new rates – which are unaffected by the latest announcement on cuts – are:

• Fixed Rate Cash ISA, 1 year fix, 4.00%
• Fixed Rate Cash ISA, 2 year fix, 3.80%
• Fixed Rate Bond, 1 year fix, 4.00%
• Fixed Rate Bond, 2 year fix, 3.80%
• Fixed Rate Branch Bond, 1 year fix, 4.00%
• Fixed Rate Branch Bond, 2 year fix, 3.80%

Savers can open the fixed rate accounts with as little as £1.

The online bonds can be opened via Nationwide’s website, internet bank and banking app while the fixed rate branch bonds can only be opened in a branch.

Nationwide’s fixed rate cash ISAs accept transfers in and can be opened via internet banking, the banking app or in a branch.

Customers that struggle to do everyday banking due to their local bank branch being far away will be pleased to learn that 150 banking hubs are now open, and that the Post Office will continue to offer basic banking services until 2030.

Major banks and building societies have signed a £1.75 billion contract to continue offering services at Post Office counters for at least the next five years. The current deal was due to expire at the end of this year.

The announcement comes as banks continue to close branches at an alarming rate. For example, Lloyds Banking Group will close almost 300 bank branches in 2025 and 2026, while Santander says it will shut 95 branches across the UK, putting 750 jobs at risk.

Widespread bank branch closures are leaving many towns and villages with zero – or a declining number of – bank branches, and many customers must travel further to visit a branch, to do things like pay in a cheque, open or close an account, or speak to an adviser about products such as savings or mortgages.

Some customers may be able to use a nearby Post Office for their banking needs, or a banking hub.

There are now 150 banking hubs up and running. At the end of last year, chancellor Rachel Reeves opened the UK’s 100th banking hub in Darwen, Lancashire, which was established following bank branch closures in the town.

Banking hubs give people access to face-to-face everyday banking services, such as withdrawing cash and depositing cheques, and are operated by multiple banking brands.

The Labour government has pledged to open 350 banking hubs by 2029.

More than 6,300 banks and building societies have closed their doors since January 2015, according to consumer group Which?.

We look at how the Post Office’s basic banking service works and who can use it, as well as how banking hubs work and whether there’s one near you.

Which banking services are available at Post Offices?

The Post Office offers everyday banking services to personal and business customers of 30 banks and building societies under something called “The Banking Framework”.

This includes customers of Barclays, HSBC, Lloyds Banking Group, Nationwide, NatWest Group and Santander. The framework was created in 2017, and will now run until at least 2030.

The services you can use at a Post Office depends on which bank or building society you are a customer of, but broadly speaking, you can check your balance, deposit cash or cheques and make withdrawals.

The list of what you can’t do includes transferring money between accounts, opening or closing accounts, and registering a lasting power of attorney.

According to Which?, some banks are also scaling back the services available through Post Offices.

For instance, Lloyds Banking Group (which includes Bank of Scotland, Halifax and Lloyds) recently told customers they won’t be able to use personalised paying-in slips at Post Offices from 2 June, while cheques will not be accepted after 31 December 2025.

How do banking hubs work?

Banking hubs are owned by Cash Access UK and operated by the Post Office. They are open Monday to Friday, 9am-5pm, and give people access to face-to-face banking services, such as withdrawing cash and depositing cheques. Customers can also check their balance, pay utility bills and top up their gas and electricity.

Community bankers from each of the five banks with the largest number of customers in the area typically come in one day a week to assist their customers with more complex banking issues like debt advice, bereavement services and fraud support.

At the new banking hub in Kirkham, Lancashire, which is the 150th to be opened, the schedule is: Lloyds on Monday, NatWest on Tuesday, HSBC and Barclays sharing Wednesday, Santander on Thursday and Halifax on Friday.

The Treasury said last year that “the roll-out of banking hubs will be a significant boost for local people and businesses, helping to revitalise the local high street and raise living standards across the UK”.

A total of 230 hubs are expected to be open by the end of 2025.

Is there a banking hub near you?

Here’s a list of banking hubs across the UK:

London and home counties

Acton, London

Ampthill, Bedfordshire

Haslemere, Surrey

Luton - Bury Park, Bedfordshire

Rochford, Essex

Royston, Hertfordshire

Ware, Hertfordshire

Welling, Kent

West Drayton, Greater London

Midlands and east of England

Barton-on-Humber, Lincolnshire

Belper, Derbyshire

Buckingham, Buckinghamshire

Clay Cross, Derbyshire

Downham Market, Norfolk

Harleston, Norfolk

Haverhill, Suffolk

Kirkby in Ashfield, Nottinghamshire

Lutterworth, Leicestershire

Mablethorpe, Lincolnshire

Oakham, Rutland

Pershore, Worcestershire

Shirebrook, Derbyshire

Stapleford, Nottinghamshire

Syston, Leicestershire

Watton, Norfolk

North England

Barnoldswick, Lancashire

Batley, West Yorkshire

Bramhall, Lancashire

Cheadle, Staffordshire

Cottingham, East Yorkshire

Elland, West Yorkshire

Filey, North Yorkshire

Heywood, Greater Manchester

Hornsea, East Yorkshire

Horwich, Lancashire

Knaresborough, North Yorkshire

Maryport, Cumbria

Newton Aycliffe, County Durham

Ossett, West Yorkshire

Otley, West Yorkshire

Prescot, Merseyside

Ramsbottom, Greater Manchester

Stalybridge, Greater Manchester

Stone, Staffordshire

Thorne, South Yorkshire

Ulverston, Cumbria

Wath upon Dearne, South Yorkshire

West Kirby, Merseyside

Withernsea, East Yorkshire

South and west of England

Axminster, Devon

Bodmin, Cornwall

Brixham, Devon

Dartmouth, Devon

Dawlish, Devon

Helston, Cornwall

Looe, Cornwall

Royal Wootton Bassett, Wiltshire

Saltash, Cornwall

Shoreham-by-Sea, West Sussex

Sidmouth, Devon

Teignmouth, Devon

Wellington, Somerset

Northern Ireland

Kilkeel

Scotland

Brechin

Cambuslang

Carluke

Carnoustie

Crieff

Cumnock

Girvan

Forres

Jedburgh

Kilwinning

Kirkcudbright

Troon (Ayrshire)

Wales

Abergele

Abertillery

Porthcawl

Prestatyn

Treorchy

Welshpool

Sainsbury’s Bank’s savings and borrowing products – savings accounts, loans and credit cards – will be run by NatWest from 1 May. Customers with substantial savings in both banks may need to move their money to keep it protected.

In June 2024, NatWest announced it was buying up Sainsbury’s Bank’s retail banking assets and liabilities, meaning its credit card, unsecured personal loans and savings accounts businesses.

It came after Sainsbury’s Bank said in January it was pulling out of those markets. Sainsbury’s Bank is keeping its insurance and travel money services, which will continue to be available as they are today and are not included in the NatWest transfer.

The NatWest-Sainsbury’s Bank deal was officially finalised on 16 April, with the date for the moving over of the Sainsbury’s Bank business to NatWest set for 1 May.

‘I have a Sainsbury’s Bank savings account. What should I do?’

Sainsbury’s Bank has said interest rates on savings accounts won’t change as a result of the transfer to NatWest.

However they may change for other reasons, for example to reflect any movements in the Bank of England base interest rate.

If there are any proposed changes to your accounts in the future, they will be made by NatWest after 1 May 2025, and you’ll be given at least 60 days’ notice.

However this could be a good opportunity to compare the rate you are currently getting on your Sainsbury’s Bank account to see if you could get a better deal elsewhere. The Santander Edge Saver easy access savings account, for example, which tops the Moneyfacts table, is paying interest at 6% – way above the current inflation rate of 2.6%. We look at the best easy access savings rates in a separate article.

Sainsbury’s Bank has also said there are no immediate changes to how you use and access your accounts.

Sainsbury’s Bank will continue to be your key point of contact for any questions relating to your accounts, including any new or existing complaints, disputes or claims. It will let you know when any of that changes.

But – and it’s a big but – if you have more than £85,000 in savings across both your Sainsbury’s and NatWest accounts, you should consider moving some of that cash into another banking group so it stays protected if something goes wrong at NatWest.

How is money in my Sainsbury’s Bank savings account protected?

Savings in bank accounts in the UK are protected by the Financial Services Compensation Scheme (FSCS), up to £85,000 per person, per institution if that institution collapses.

Per institution is the important bit for savings account customers of Sainsbury’s Bank and NatWest, following the transfer of business on 1 May.

This is because, in the event NatWest fails, customers with savings accounts with both banks will only be protected up to £85,000 – even if they have more than that across multiple accounts.

As far as the FSCS is concerned, from 1 May, your accounts are with one institution, NatWest, so you only get the protection of a single institution, the £85,000 limit, even if you are still transacting with the brand Sainsbury’s Bank.

This also includes account holders with Ulster Bank, which is already part of NatWest.

So if you have more than £85,000 in savings accounts across any of those three brands – NatWest, Sainsbury’s Bank and Ulster Bank – you may want to spread some of that money out into accounts with entirely separate banks so you still benefit from full FSCS protection.

Can I still access my accounts via the Sainsbury’s Bank app?

There will be no immediate changes to how you access the Sainsbury’s Bank website, mobile app and online banking, or how you can contact Sainsbury’s Bank.

You will be contacted by NatWest in the coming months to transfer you over to their systems.

Any direct debits or standing orders will remain in place, and how you spend and make payments won’t immediately change, likewise how you transfer money to and from savings accounts.

The card you use, including your PIN, 0% promotional offers and use of Apple Pay and Google Pay will be the same for now, and you can collect Nectar points with your credit card as normal.

For Sainsbury’s loan customers, your personal loan repayment amount, date and rate will remain the same.

If your account is in arrears, any agreement you have in place about repayment of debt, for example repayment plans, will continue on your existing account on 1 May 2025.

You should keep making the payments you’ve agreed to. If any changes need to be made to your support arrangements in the future, NatWest will let you know.

Chase Bank will overhaul its popular cashback deal from 7 April, meaning current account customers will only be able to earn money in certain places.

It is another blow for Chase customers, who recently saw the interest rate cut on the Chase Saver account.

From Monday, 7 April, customers will only be able to earn 1% cashback on debit card spending across three categories: groceries, everyday transport, and fuel.

Cashback will also be restricted to purchases made in the UK and paid for in pounds sterling. Currently, cashback is paid on any spending in the UK or worldwide.

The announcement is the latest in a long line of changes to the popular Chase bank account over the past few years. The account previously paid 1% cashback and 1% interest, making it a highly attractive option.

In May 2023, it capped the amount you could receive in cashback at £15 a month. Then in March last year, the bank hiked the minimum monthly contribution needed to get the cashback from £500 to £1,500.

In August 2024, it scrapped the 1% interest.

Mark Powys, managing director for daily banking at Chase, stressed that Chase's cashback offer remains “one of the most competitive on the market, enabling customers to earn a little extra on many of the essential things they already buy daily”.

How is Chase’s cashback deal changing?

From 7 April, Chase customers will be restricted to earning cashback on three categories. These are:

• Groceries (supermarkets, grocery stores, miscellaneous food stores, convenience stores and specialty markets. Excludes: alcohol stores, some food delivery services like Deliveroo)
• Everyday transport (local and suburban commuter passenger transportation including ferries, buses including charter/tour buses, National Rail, Eurostar, Edinburgh Trams, Transport for London including topping up Oyster cards. Excludes: taxis)
• Fuel (service stations, petrol pumps and electric vehicle charging points. Excludes: charging points at home)

Cashback can be earned when you pay online or in-store, using your physical debit card or contactless. However, you might not earn cashback if you pay through Curve or Klarna.

A second change, also from 7 April, means Chase customers will earn cashback only on purchases made in the UK and paid for in sterling. So, you won’t get any cashback if you use your card when travelling abroad.

Rachel Springall, finance expert at Moneyfactscompare.co.uk, tells MoneyWeek that "at a time when interest rates are falling, it’s disappointing to see banks tweak the benefits on current accounts, such as cashback".

She adds: “Those Chase customers who use their debit card on everyday purchases will now need to closely monitor how they use their card if they want to maximise the 1% cashback, which is applied each time they spend. Frequent travellers may also be disappointed to see they will no longer earn cashback on spends outside of the UK."

The bank, which is owned by JPMorgan, says the “new cashback categories align with the typical daily essential spending areas of Chase customers”.

It adds that its cashback offer is “one of the best on the market – with no monthly fee, and a straightforward way of earning cashback each month”.

Customers will continue to earn 1% cashback, which is capped at £15 cashback a month.

The eligibility criteria remain the same: there is no deposit requirement for new customers in their first year of cashback, while existing customers will continue to need to pay in at least £1,500 each month to their Chase accounts. This can include deposits into Chase Saver accounts.

The cashback deal has proved very popular since Chase launched in 2021. The bank has more than two million UK customers, all of whom have a current account with the bank.

Should I switch to a different current account?

If you spend at least £1,500 a month across groceries, public transport and fuel, you will still earn the same amount of cashback as you do now, as it’s capped at £15 a month. So, the change won’t affect you.

However, if you don’t spend this much on these categories, and you have more spending at places like restaurants, beauty salons and cinemas (which will be excluded from cashback from 7 April), then yes, the changes will affect you.

Other high-paying current accounts for cashback include the Santander Edge range. The accounts pay 1% cashback: Santander Edge Up customers can earn up to £15 cashback a month, while Santander Edge is capped at £10.

However, these accounts do come with a monthly fee, of £5 for Edge Up and £3 for Edge.

In contrast, the Chase account does not have a monthly fee.

Springall notes that Santander could be a good option for some people, and it could be worth looking at credit cards that pay cashback too.

However, she adds: "As a general comparison, Chase is still offering a competitive return of cashback of up to £15 each month, as it doesn’t charge an account fee and just needs users to put £1,500 into the account each month.”

Powys at Chase points out that as well as the cashback offer, “Chase's current account offers a range of money management features, interest on small change round ups through Chase's round up account, and a competitive-rate easy access savings account”.

The Chase Saver account pays 3% interest. This can be boosted by 1.75% for new customers for the first six months if they open the savings account within 31 days of joining the bank.

If you are thinking of switching to another bank or building society, make sure you check out the best bank switching offers - you can get up to £175 for moving your current account at the moment.

Nationwide is pulling its market-leading £175 switching bonus at the end of March, after gaining the most current account customers out of any bank or building society.

The bonus is currently the biggest switching offer for customers moving their current account, along with Lloyds Bank and First Direct, which also pay £175.

The incentive has proved popular with switchers, with the latest Current Account Switch Service report showing Nationwide as having the highest net switching gains of all providers.

From July to September 2024 – the latest figures available – Nationwide had the highest net switching gains with 22,622, followed by Barclays (18,053) and TSB (12,282).

The building society says its £175 bonus is an example of how it “invests profit for the benefit of members”. Last year Nationwide returned £385 million to eligible members through a £100 Fairer Share payment.

It has made the payment for two years in a row, and intends to make another Fairer Share payment again this year, “providing it would not be detrimental to the society’s financial strength and subject to board approval”.

Nationwide, which is the world's largest building society with more than 17 million customers, has offered its £175 switching bonus since last September. Prior to that, it offered a more generous £200 switching perk.

Tom Riley, director of retail at Nationwide Building Society, said: “Our switching incentive is a demonstration of how we are making banking more rewarding for customers. We would encourage anyone looking to switch their account to do so now to benefit from the offer as it will be withdrawn later this month.”

How to qualify for Nationwide’s £175 switching bonus

The £175 switching perk will be withdrawn at 23:59pm on Monday, 31 March, so you’ll need to be quick if you want to grab it.

The Nationwide bonus differs to other switching incentives because it is open to both new and existing customers. To qualify, you must complete a full switch using the Current Account Switch Service. A full switch means that the old account is closed and all payments are transferred to the new account.

A minimum of two active Direct Debits must be moved to the new account as part of the switch. Customers must also deposit £1,000 and make one debit card payment within 31 days.

Note that cash withdrawals, gambling or cryptocurrency transactions and mortgage payments do not qualify as eligible debit card transactions.

Also, the £1,000 credit cannot come from another Nationwide account or credit card.

The new current account must be opened via Nationwide’s website, internet bank or mobile banking app. The switch must be requested as part of the application. If you’re a Nationwide customer, you can switch a current account you have with another provider to an existing account you hold with Nationwide. The switch must be completed within 28 days of it being requested.

Customers can switch to one of Nationwide’s three main current accounts: 

• FlexPlus: a packaged account with worldwide family travel insurance, mobile phone insurance, UK and European breakdown cover and commission-free usage abroad for £18 a month
• FlexDirect: a fee-free online account paying 5% AER credit interest and 1% cashback on debit card spend for the first 12 months
• FlexAccount: a fee-free bank account where customers can bank online and in branch

Santander will end its current account switching deal worth £150 on 5 February as the bank says it has seen strong demand since the offer launched in November last year.

Those who want to capitalise on the offer will have until 23:59 on Wednesday to send a switch request to the bank and still be eligible to claim their free cash.

Santander says that if the switch is completed after the deadline, users will still be able to claim the £150 incentive, but warns that the initial request must be placed before the cut-off.

If you miss the deadline you will lose out on the £150 deal. However, those who want to make some cash when switching their bank account can still get up to £175 using the best bank switching offers.

How do I claim Santander’s £150 switcher deal?

Santander’s £150 switcher deal is available to customers who request to switch their current account to either a Santander Edge, Santander Edge Up, Everyday, or Private current account v2.

That means that even if you are an existing Santander customer with a different current account, you can still claim the £150 by switching to one of the above options.

To qualify for the incentive, you must:

• Complete the full switch within 60 days of the initial switch request (including the closure of the old account)
• Pay in at least £1,500 within 60 days of the switch request
• Set up two active direct debits within 60 days
• Continue to hold the qualifying current account on the day the payment is made

Customers who have previously benefited from a Santander switcher incentive are not eligible for this latest offer; those who are will get paid within 90 days of the switch process.

Remember, those wanting to claim the £150 incentive will need to act fast as it is only available to eligible customers until 23:59 on Wednesday, 5 February.

What are the benefits of opening a Santander Edge account?

Outside of the £150 switching bonus, there are several other reasons why users may want to change to a Santander Edge account.

The account provides 1% cashback on eligible household bills paid using a direct debit up to £10 a month, while 1% cashback (also up to £10 a month) is also available from supermarkets.

Holding an Edge account also gives the user access to the exclusive Edge Saver account, which lets users gain 6.00% interest on balances up to £4,000. For examples of other high-interest savings options, MoneyWeek has a list of the best savings accounts.

Maximising Santander’s cashback offers could give you up to £240 extra a year, but you must pay £3 to Santander a month to keep the account active.

Chancellor Rachel Reeves and economic secretary Tulip Siddiq have opened the UK’s 100th banking hub in Darwen, Lancashire, which has been set up following bank branch closures in the town.

Banking hubs give people access to face-to-face everyday banking services, such as withdrawing cash and depositing cheques, and are operated by multiple banking brands.

The Labour government has pledged to open 350 banking hubs by 2029.

More than 6,000 banks and building societies have closed their doors since January 2015, according to consumer group Which?.

NatWest, RBS, Ulster Bank and Barclays are just some of the banks that have shut branches this year.

Banking hubs are owned by Cash Access UK and operated by the Post Office. They are open Monday to Friday, 9am-5pm. Customers can also check their balance, pay utility bills and top up their gas and electricity.

Community bankers from each of the five banks with the largest number of customers in the area come in one day a week to assist their customers with more complex banking issues like debt advice, bereavement services and fraud support.

In the Darwen banking hub, the participating banks are NatWest, Santander, Lloyds, Halifax and Barclays - the banks with the most customers in that location. According to the Treasury, opening the banking hub will protect access to cash and banking services for 10,000 local residents and 150 shops within one kilometre of Darwen town centre.

The Treasury said “the roll out of banking hubs will be a significant boost for local people and businesses, helping to revitalise the local high street and raise living standards across the UK”.

Reeves adds: "Reaching this milestone of 100 banking hubs is a huge step towards making sure that people across the country have access to essential face-to-face banking services.”

A total of 230 hubs are expected to be open by the end of next year.

Research from Cash Access UK shows that having a banking hub in a town can increase footfall, with residents visiting the town more regularly and staying for longer.

Gareth Oakley, CEO of Cash Access UK, comments: “Access to cash and face-to-face banking services remain vital to millions of people and businesses who rely on it. We're delighted that banking hubs, alongside deposit services, are proving to be successful and are making a real difference to communities and high streets up and down the country."

If you don’t have a banking hub near you, and your local bank or building society branch has closed, you may be able to use a Post Office to do day-to-day banking.

Is there a banking hub near you?

Here’s a list of banking hubs across the UK:

England

Belper
Buckingham
Cheadle
Clay Cross
Kirkby In Ashfield
Lutterworth
Mablethorpe
Market Rasen
Oakham
Pershore
Shirebrook
Stapleford
Stone
Syston
Barnoldswick
Barton-Upon-Humber
Batley
Cottingham
Elland
Filey
Hessle
Hornsea
Knaresborough
New Rossington
Newton Aycliffe
Ossett England
Otley
Richmond
Seaham
Thorne
Wath upon Dearne
Withernsea
Yeadon
Bramhall
Darwen
Great Harwood
Heywood
Horwich
Maryport
Moreton
Prescot
Ramsbottom
Stalybridge
Ulverston
West Kirby
Westhoughton
Acton
Ampthill
Bury Park
Downham Market
Enfield North
Harleston
Harpenden
Haslemere
Hatfield
Haverhill
Rochford
Royston
Shoreham-by-Sea
Ware
Watton
Welling
West Drayton
Axminster
Bodmin
Brixham
Calne
Dartmouth
Dawlish
Helston
Looe
Royal Wootton Bassett
Saltash
Sidmouth
Teignmouth
Wellington

Northern Ireland

Kilkeel
Newcastle
Portrush
Warrenpoint

Scotland

Auchterarder
Brechin
Cambuslang
Carluke
Carnoustie
Crieff
Cumnock
Forres
Girvan
Huntly
Jedburgh
Kilwinning
Kirkcudbright
Troon

Wales

Abergele
Abertillery
Morriston
Porthcawl
Prestatyn
Treorchy
Welshpool

Lloyds Bank has launched a new bank switching bonus in a bid to entice customers to its Club Lloyds account range.

The high-street lender is offering £175 to new and existing customers who sign up for one of its Club Lloyds accounts, along with a host of other perks.

This makes it the fifth bank switching offer currently on the market, offering customers free cash of up to £175. It comes hot on the heels of First Direct’s £175 deal, Nationwide’s £175 switching incentive, TSB Bank’s £160 bonus and Co-operative Bank’s £150 offer.

While Lloyds Bank’s latest deal isn’t as generous as the £200 offered in late 2024, the bank is still quite popular, which means switchers will need to act fairly quickly if they want the £175 bonus.

We look at everything you need to know about Lloyds Bank’s switching bonus and how it compares to the rest of the market.

Lloyds Bank £175 switching deal – what is on offer?

Lloyds Bank is offering a £175 bonus when you switch your current account to one of its Club Lloyds accounts.

This includes the Club Lloyds (£3 a month), Club Lloyds Silver (£11.50 a month) or Club Lloyds Platinum account (£22.50 a month).

The deal is available to new and existing Lloyds customers, but you won’t be eligible if you already hold a current account with Lloyds.

To be eligible, you must:

• Switch your bank account to a new Club Lloyds current account
• Open a Club Lloyds Account (£3 monthly fee), Club Lloyds Silver Account (£14.5 monthly fee) or Club Lloyds Platinum Account (£25.5 monthly fee)
• Have a minimum of three active direct debits from your old account. This excludes standing orders and recurring card payments.

Existing customers can qualify for the £175 as long as they open a new Club Lloyds Account, Club Lloyds Platinum Account or Club Lloyds Silver Account and meet the above criteria.

The £175 will be paid into your account within three days of completing the switch.

Lloyds Bank’s £175 incentive is only available for a limited time only and customers must switch by 1 April to get their hands on the free cash.

The Silver and Platinum account imposes an extra £3 “monthly Club Lloyds fee”. This charge can be waived providing you deposit a minimum of £2,000 per month in your account. You can also waive the £3 monthly fee on the Club Lloyds account by doing this, so essentially the Club Lloyds account is free to hold if £2,000 is deposited each month.

The £3 monthly fee is set to increase to £5 from 2 June 2025.

You can make the switch online on the Lloyds website, via its mobile banking app, or in a branch.

Customers who have already received a switching incentive from Lloyds Bank, Halifax or Bank of Scotland since April 2020 won’t be eligible for this deal.

The Club Lloyds accounts also come with an attached 6.25% Club Lloyds Monthly Saver. You can save up to £400 a month and access your cash whenever you like. The accounts come with other perks too. You can choose one lifestyle benefit from a free 12-month Disney Plus subscription, Vue or Odeon cinema tickets or a digital Coffee Club and Gourmet Society membership.

The Club Silver and Club Platinum accounts also offer European family travel insurance, cover for winter sports and other activities, AA breakdown family cover, mobile phone insurance and fee-free spending abroad.

How does the Lloyds Bank £175 switch compare?

Currently, there are five bank switching deals on the market. So, how does Lloyds Bank compare to the rest?

Three of the five deals on the market are offering customers £175, so it’s worth looking at the additional perks that might put one switching offer on top of the others.

For instance, if you’re on the hunt for the best savings rate, First Direct comes out on top with its 7% regular saver attached and fee-free spending abroad. The account is also free to maintain, while Lloyds Bank’s Club Lloyds account has a £3 (soon to be £5) monthly fee.

As well as offering £175 to switchers, Nationwide Building Society is known for its £100 Fairer Share Payment that it has offered for two consecutive years. While there’s no guarantee the bonus will be paid in 2025, the mutual’s chief executive Debbie Crosbie said towards the end of last year that they were “well positioned" to repeat the payment.

Lloyds Bank’s deal is not only paying more cash than the Co-op Bank and TSB Bank but it is also relatively straightforward in comparison.

However, the bottom line is that switching shouldn’t just be about the bonus on offer, but what benefits serve you best and an account that meets all your needs.

Nationwide increased the monthly fee on its FlexPlus packaged account this week, meaning customers will now pay £60 more per year for the account. It was the first fee increase since 2017, with the building society blaming it on the rising cost of insurance.

The account offers an attractive range of perks, including worldwide travel and phone insurance for the entire family, plus vehicle breakdown cover. But at £18 per month or £216 per year, is it still one of the best packaged bank accounts?

The answer to that question largely depends on what you are looking for from your packaged account.

If you only need European travel insurance rather than a worldwide policy, for example, you might be able to find a cheaper deal elsewhere. Similarly, if you don’t have a car, vehicle breakdown cover is unlikely to be much use.

On the other hand, if you rely on these features and would otherwise need to take out a separate policy, the FlexPlus account could offer you a good deal.

We have reviewed packaged bank accounts from a range of providers and, based on our analysis, the Nationwide fee doesn’t look out of kilter with the wider market, when you compare like-for-like accounts.

A similar account from Monzo costs £17 per month, for example, or £22 if you want to add your family to the insurance policy.

Nationwide has also built a strong reputation in recent years through initiatives like its £100 fairer share bonus, paid to customers in both 2023 and 2024. Programmes like these are important in building customer loyalty.

That said, it is still important to assess how much use you are getting out of the perks you are paying for. If the answer is ‘not much’, you might be better opting for a regular current account with no fee at all.

What comes with Nationwide FlexPlus?

Nationwide FlexPlus offers a range of perks including worldwide travel and phone insurance, and vehicle breakdown cover in the UK and the rest of Europe. Customers can also use their card on holiday without any charges.

Signing up for FlexPlus also gives you access to other Nationwide products, including the Flex Regular Saver and Flex Instant Saver. These come with rates of 6.50% AER and 3.25% AER respectively.

The Flex Instant Saver rate isn’t necessarily anything to write home about – the best easy-access savings accounts elsewhere currently pay up to 4.85%. The regular saver is a good deal, though. At 6.50%, it is currently the fourth best ‘regular saver’ rate on the market, according to comparison site Moneyfacts.

What’s more, new customers who like the sound of the Nationwide account can currently take advantage of a £175 switching deal. See our round-up of the best switching deals currently on the market.

Even after the latest fee hike, Nationwide says FlexPlus is “one of the UK’s most competitive packaged current accounts, both in price and quality of cover”. The bank also pointed to its “leading customer service”.

At a time when branches are closing, Nationwide still has a strong high street presence, meaning it could be a good option for those who prefer to bank in-person.

The bank narrowly missed out on becoming a ‘Which?’ recommended provider last month, but the consumer site said the building society was “rated highly and had a string of four or five-star ratings” for most elements of its service.

How does FlexPlus compare to other packaged accounts?

Nationwide FlexPlus versus Virgin Money

One of the cheapest packaged accounts on the market is the Virgin Money Club M Account, which comes with a monthly fee of £12.50. This makes it £5.50 cheaper than Nationwide FlexPlus each month, or £66 cheaper over the course of a year.

If Nationwide pays out another £100 fairer share bonus in 2025, you would have been better off sticking with them over Virgin, although of course there are no guarantees. You also need to weigh up factors like customer service. If you are happy with your current provider, switching is always a risk.

The Virgin Money account comes with some similar features to Nationwide FlexPlus, including worldwide travel insurance, mobile phone and gadget insurance and vehicle breakdown cover. Like Nationwide, there are no fees on your card when you travel.

The linked savings account offered by Virgin Money is less attractive, with a measly rate of 2.50% AER, although savers should remember they can access significantly higher rates than this elsewhere without having to pay any membership fees at all. The same goes for the 3.50% Nationwide Flex Instant Saver. See our round-up of the best easy-access savings accounts.

Nationwide FlexPlus versus Club Lloyds

Club Lloyds also offers a range of similar perks to Nationwide. You can choose from a range of different membership levels, depending on the perks you are looking for.

The Silver account costs £11.50 per month (plus an additional £3 Club Lloyds fee, which is waived if you pay more than £2,000 into your account each month). However, this only covers you for European and UK trips up to age 65.

If you are older than 65 or need worldwide insurance, you will need to opt for the Platinum version of the account, which is more expensive at £22.50 per month. This also comes with an additional £3 Club Lloyds fee, depending on how much you pay into your account each month.

If you don’t need worldwide travel insurance, you might be better opting for the Silver account at Club Lloyds over Nationwide. It also comes with AA breakdown cover, mobile phone insurance, and no debit card fees when you travel. Nationwide is the cheaper option if you need worldwide insurance, though.

A nice perk with Club Lloyds is that it allows you to choose a different lifestyle benefit each year per account. Customers can choose between a Disney+ subscription, six free cinema tickets, a magazine subscription and more.

Again, you need to weigh up how much you would actually use the benefits and whether it justifies the monthly Lloyds fee.

Starling Bank may be one of the fastest-growing digital banks in the UK, but its systems have failed to keep up with its growth, leading to failings over applying adequate measures to tackle financial crime.

Following a 14-month investigation, the Financial Conduct Authority (FCA) has fined the app-based bank £28,959,426 for financial crime failings related to its financial sanctions screening. The UK regulator also said the bank repeatedly breached a requirement not to open accounts for high-risk customers.

Starling, founded by Anne Boden, launched in 2014. It got a banking licence in 2016 and launched personal current accounts in 2017. And earlier this year, it also took a joint top spot with Nationwide as one on the best banks for online banking.

Starling promised to make banking simpler and smoother with useful tools to help people manage their money. It subsequently grew from 43,000 customers in 2017 to 3.6 million in 2023 as it took on the high street with its sleek processes.

But, while Starling grew its customer base, the measures to control financial crime struggled to keep up.

Where did Starling go wrong?

The FCA identified serious concerns with the anti-money laundering and sanctions measures in place at Starling, labelling its controls ‘shockingly lax’.

Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said: “Starling’s financial sanction screening controls were shockingly lax. It left the financial system wide open to criminals and those subject to sanctions. It compounded this by failing to properly comply with FCA requirements it had agreed to, which were put in place to lower the risk of Starling facilitating financial crime.”

Starling failed to comply and opened over 54,000 accounts for 49,000 high-risk customers between September 2021 and November 2023.

It was in 2023 that Starling realised its systems were only screening customers against a fraction of the full list of those subject to financial sanctions since 2017. There were also systemic issues in its financial sanctions framework. 

Starling has reported the potential breaches and says it is putting things right. The challenger bank would have been fined £40 million, but was granted a 30% discount as it agreed to resolve the issues.

In a statement, David Sproul, chairman of Starling Bank, said: “I would like to apologise for the failings outlined by the FCA and to provide reassurance that we have invested heavily to put things right, including strengthening our board governance and capabilities. We want to assure our customers and employees that these are historic issues. 

“We have learned the lessons of this investigation and are confident that these changes and the strength of our franchise put us in a strong position to continue executing our strategy of safe, sustainable growth, supported by a robust risk management and control framework.”

Nationwide has launched a new bank switch offer in a bid to woo customers to its Flex current account range.

The building society is offering £175 to new customers who sign up to one of three current accounts: FlexPlus, FlexDirect and FlexAccount. These come with a regular savings account that offers an above-inflation rate.

It’s the second new switcher offer to have been announced in September after First Direct also unveiled a new incentive. While Nationwide’s latest deal isn’t quite as generous as the £200 it offered earlier in 2024, the building society is popular, meaning the offer could end soon. Nationwide has also scored points with customers over its ‘Fairer Share’ loyalty bonus, which paid out £100 to members this year.

As with any switching bonus, we recommend checking the small print as well as what hoops you need to jump through before deciding to make the move. You should also consider whether the account you’d like to switch to meets your needs. If you’ve got a credit application coming up, it’s worth noting that switching can have an impact on your credit score.

So, how can you get the £175? Here’s everything you need to know about Nationwide’s latest switching deal.

How does the Nationwide bank switch offer work?

Nationwide is offering £175 to any new customers who opt to switch to one of its Flex current accounts. These accounts are:

• FlexAccount: a no-frills account that offers online or in-branch banking with no fees.
• FlexDirect: an interest-paying current account with no fees (but several rules - see more below).
• FlexPlus: a packaged account offering a load of perks - including worldwide travel insurance and no charges for using your card abroad - for a £13 a month (£156 a year) fee. This fee is rising to £18 a month (£216 a year) from 1 December.

To get your hands on the free money, you will need to initiate a switch using the Current Account Switching Service (CASS). You can do this by opening an account with Nationwide via its website or mobile banking app, and requesting a CASS switch. The account you’re switching from must have at least two direct debits that will be transferred with it.

When your new Nationwide account opens, you will need to deposit £1,000 into it (this can’t come from another Nationwide account or through Visa credit), and make one debit card transaction. Cash withdrawals, gambling and mortgage payments do not count. If you do this within 31 days of the account opening, the money will be wired into your account.

The other key bit of eligibility criteria is that it’s not open to those who have received a bonus for switching over a sole or joint account since 18 August 2021, and are trying to do so again for the same type of account. But, if you opened a sole account to get the last switcher incentive, Nationwide will allow you to get the bonus for switching over a joint account, and vice versa.

What is the difference between Nationwide’s Flex current accounts?

As mentioned above, the three accounts Nationwide is trying to get people to switch to come with different benefits and rules. Here’s what you can get.

FlexAccount

Nationwide’s basic offering. This standard account offers no perks and doesn’t charge fees. But it will make you eligible for the Fairer Share loyalty bonus, and you’ll be able to access Nationwide’s range of savings accounts which all currently offer inflation-busting rates.

The building society has also revealed that it will be bringing in changes to its overdrafts from November. With this account, as well as the other two (below), customers will get a £50 interest-free buffer if they dip into the contingency they’ve agreed with Nationwide.

FlexDirect

This fee-free current account pays you interest on your cash on the first day of each month. You will get a rate of 5% (fixed for a year) on balances of up to £1,500. To access this, you have to pay in £1,000 a month from a non-Nationwide account. Once the 12 months is up, the interest rate falls to 1%.

If you haven’t had a FlexDirect incentive before, you will also be able to get 1% cashback on your debit card transactions (capped at £5 a month). This will run for the first year of having the account. Another benefit is that you will get an interest-free arranged overdraft for the first 12 months.

A key thing to note with this account is that Nationwide deems it to be ‘self-service’. What this means is that customers can only bank online or over the phone. So, if you like having the option of in-branch banking, this account may not be suitable for you.

FlexPlus 

For £13 a month, you get lots of bells and whistles with this current account. Benefits include Aviva worldwide travel insurance cover for you and your family, Assurant mobile insurance, AA breakdown cover in the UK and Europe, as well as no charges on spending abroad.

You can also bank in any way you like, be that online, over the phone or in-branch. The rub is that the monthly fee will rise 38% to £18 a month (£216 per year) from 1 December. It means you’ll need to weigh up whether the perks meet your needs before signing up.

How does Nationwide compare with the rest of the market?

Given it offers plenty of ways of boosting the £175 cash bonus (for example, via Fairer Share and cashback), the Nationwide deal compares favourably with the only other incentive currently on market from First Direct. The process of securing the cash is also slightly easier than with First Direct, given you don’t need to log-in to digital banking and you only need to make one debit card transaction.

If you’re someone who wants to bank ethically, be that for environmental or other CSR reasons, Nationwide tends to outrank most other major banks. As a member-focused building society, it also beats shareholder-focused First Direct on this front.

But where First Direct has the measure of Nationwide is with the rate it offers on its regular saver, which is 0.5 percentage points higher at 7%. The HSBC subsidiary also routinely comes out on top in customer satisfaction surveys. The pair are tied when it comes to their online banking scores.

The bottom line is, there is no ‘best’ current account to switch to as it all depends on what you need from a current account. To keep in the loop with new deals and offers, see our guide to banks offering the best switching deals.

Lloyds Banking Group has confirmed another wave of bank branch closures, with 79 more sites set to shut this year and next.

The group, which operates the Halifax, Lloyds Bank and Bank of Scotland brands, had already said 166 branches would close in 2026 and 2027, but the new closures bring that total to 245.

Under the latest set of closures, 48 Halifax branches and 31 Lloyds Bank branches will shut.

Lloyds Banking Group has shut more than 1,547 sites already between 2015 and June 2026, according to Which?.

Lloyds said that more than three quarters of the branches affected by the most recent wave of closures are within a mile of another Lloyds Banking Group branch, and 95% have an alternative branch within five miles.

Lloyds Banking Group customers can use any branches within the group's brands. For example, if you are a Halifax customer, you can access banking services in a Lloyds Bank branch.

A Lloyds spokesperson told MoneyWeek: “With access to one of the biggest branch networks in the UK, alongside local banking options like our Community Bankers, the Post Office, PayPoint, plus our leading apps and 24/7 messaging service, we offer our customers more choice and convenience than ever before.”

Lloyds Banking Group is not alone in shutting branches. Between January 2015 and January 2026, an estimated 6,693 bank branches shut in the UK, according to Which?.

Most major high street banks have announced closures, including Santander, Barclays and NatWest.

Full list of Lloyds Bank Group branch closures 

The list below shows all the Lloyds Banking Group branches slated to shut in 2026 and 2027, including those that have already shut their doors in 2026.

Lloyds Bank branch closures

Halifax bank branch closures

Bank of Scotland branch closures

My local bank is closing – what are my options?

If your local bank branch has closed, and you don’t want to use mobile or online banking, there may be some alternative options.

You can carry out the vast majority of basic banking tasks at the Post Office, including withdrawing cash, checking your balance and paying in cash and cheques.

Meanwhile, a number of banks now offer specialised services to customers without a physical bank near them.

Santander and Lloyds Banking Group both deploy “Community Bankers” in communities offering face-to-face financial support, while Barclays has a network of “Local” sites which run out of vans, pods and libraries where customers can get in-person support with their personal banking.

NatWest Group also runs mobile banking vans, which visit communities and let people cash cheques, make deposits and withdrawals and pay bills. Lloyds Banking Group used to offer a similar service but axed it in 2024.

You may also be able to get help in a banking hub. These are run by the Post Office and allow customers to carry out everyday banking tasks. You can also get help with more complex inquiries from community bankers on certain days of the week.

If none of these suit, you could always switch bank or building society to one with a branch near you, via the Current Account Switch Service (CASS).

The Payment Systems Regulator (PSR) has confirmed it intends to slash the maximum amount of fraud compensation banks and payment providers will have to pay out to scam victims.

Under its original plans, which were set to come into force from 7 October, the PSR was going to bring in a mandatory pay-out limit to reimburse the losses of Authorised Push Payment (APP) fraud victims. This maximum would have covered any losses up to a total of £415,000.

However, in an announcement on Wednesday (4 September), the regulator said it was now proposing to bring the upper limit in line with that of the Financial Services Compensation Scheme (FSCS) at £85,000 - 80% lower than the maximum amount it had previously proposed.

At present, there are no rules forcing firms to compensate customers who fall victim to APP fraud, although many companies do offer at least some form of reimbursement. This type of fraud sees victims getting tricked into sending money directly to criminals. For example, it can involve people making payments for goods or services that don’t exist.

According to the Financial Times, the PSR had come under significant pressure from ministers and the industry to reduce the proposed limit. City Minister Tulip Siddiq, her Conservative predecessor Bim Afolami, as well as banking trade body UK Finance, were named by the newspaper as being among those who had been lobbying for the changes to be made.

It comes after statistics from UK Finance, which were published in May, showed fraudsters managed to steal £3.2m a day in 2023. The number of APP cases was found to be at a record level having grown 12% year-on-year to 232,429.

PSR: new fraud compensation limit ‘strikes right balance’

Justifying its move, the PSR said its analysis of UK scam cases showed there were just 18 instances of more than £415,000 being stolen through APP fraud in 2023. This figure came out of a total caseload of more than 250,000. There were 411 instances of victims losing between £85,000 and £415,000.

With the number of high-value fraud cases at such a low level, it said the new £85,000 limit should cover 99% of fraud claims. The regulator added that the FSCS compensation limit was “well understood” by consumers, suggesting its new approach would benefit from that.

PSR managing director, David Geale, said: “We listened to concerns about the reimbursement limit and committed to collecting more evidence to inform our approach. As a result, we are now consulting on a limit that still covers the vast majority of authorised push payment scams and strikes the right balance. Under our proposals, consumers in the UK will still receive world-leading protection, payment providers will still be heavily incentivised to improve anti-fraud protections and we maintain effective market competition and innovation.”

The regulator is now running a short consultation on its updated proposals. It closes on 18 September, ahead of the implementation of the new rules on 7 October.

Rocio Concha, director of policy and advocacy at consumer watchdog Which?, criticised the move. He said: "It's outrageous that the payments regulator is set to water down vital scam protections weeks before they were due to take effect and that this move follows months of lobbying from firms that refuse to take fraud seriously.

"Slashing the reimbursement limit risks exposing victims of the highest value scams to devastating financial and emotional harm and also significantly reduces crucial financial incentives for payments firms to put in place effective fraud security measures. This makes it more likely that scammers will continue to thrive on some payment platforms."

Metro Bank will start charging customers to use their debit cards abroad later this summer.

The high-street bank currently allows customers to spend on their debit cards and make cash withdrawals in a foreign currency in Europe free of charge.

But from 29 August, there will be a 2.99% fee on all debit card transactions made outside the UK.

Customers withdrawing cash from their bank account abroad will pay the 2.99% fee plus an additional £1.50 ATM fee.

The move follows a string of changes to Metro Bank’s savings accounts. Metro Bank will cut the rate on its Current Limited Edition savings accounts to 3.95% on 8 July.

At the start of the year, the bank pulled its top 5.66% one-year fixed saver from the market and slashed its Instant Access Saver rate from a market-leading 5.22% to 4.51%.

We look at Metro Bank’s foreign fees in more detail, and highlight the best travel debit cards to pack for your next trip so you avoid getting ripped off on holiday.

Why is Metro Bank making this change?

Metro Bank has about three million customers, many of whom have enjoyed being able to use their debit card free of charge when travelling in Europe.

However, last week, it emailed customers saying it would start charging for transactions made in all foreign countries from the end of August.

The email said: "After August 29 2024, debit card payments made in a foreign currency outside the UK will be charged 2.99% on the converted British pound value of the transaction.

"After August 29 2024, cash withdrawals made in a foreign currency using your debit card outside the UK will be charged 2.99% on the converted British pound value plus £1.50 ATM fee.

"This charge is applicable for each transaction you make."

Customers have been disappointed by the news, with some saying they will switch to a different bank.

On X (formerly Twitter), Lateralam said: “Well done @Metro_Bank. for adding fees & flat additional charges for using card abroad. Pretty much the only reason for having the accounts. As the Bay City Rollers once said, Bye Bye Baby...”

Dimitar Christoff tweeted: “I've been with @Metro_Bank for so many years but the recent change to charges for using your debit card abroad is unacceptable. Going to redirect moneys to Monzo.”

The 2.99% fee may not sound that high, but the charges can quickly rack up, especially for say a two-week family holiday.

For example, if you withdraw £100 at an ATM three times, the total fee for getting out travel money with your debit card would be £13.47. If you also used your debit card to pay for things 20 times for an average amount of £30, Metro Bank would charge a total of £17.94. 

This means a family could fork out £31.41 just to use their current account when they’re abroad. That’s enough for a round of ice-creams and a few beers, possibly with change left over. 

Explaining the change, a Metro Bank spokesperson said: “Over time we’ve seen our customers' needs and expectations evolve and the demand for this service has been declining over a number of years.”

Which are the best debit cards to use abroad?

Many banks and building societies will add a fee to debit card transactions made abroad.

According to travel debit card Currensea, UK holidaymakers are estimated to be paying around £2.7 billion a year in unnecessary fees.

However, some banks don’t charge anything for using a debit card outside the UK. It’s worth noting that ATM withdrawals may still incur a fee, which can be as high as £5. So, double-check before using a foreign ATM. 

The top-five current accounts with no monthly charge and no fees when you use your card abroad, according to financial ratings company Defaqto are:

If you don’t want to switch your current account, you could take out a fee-free travel credit card.

Another option is to take out a Currensea card. This debit card links to your existing current account, and has no fees on spending or ATM withdrawals abroad.

See Best debit and credit cards to use while travelling abroad for more debit cards, and for fee-free credit cards to use abroad. 

The Labour Party has pledged to open 350 banking hubs during the next Parliament, if it wins the 2024 general election.

Sir Keir Starmer’s party, which launched its manifesto last week, claimed it would “bring banking back to the high street” should it form the next government. It would do so by giving the Financial Conduct Authority (FCA) new powers, and by reforming the criteria for where hubs can be created. It comes as Labour has sought to paint itself as the party of business.

Banking hubs work in a similar way to bank branches in that they give people access to face-to-face everyday banking services. The only difference is that these spaces are operated by multiple banking brands. They were first launched in 2021 in a bid to keep a banking presence in towns that had lost access to physical branch services, with 56 currently in operation.

Dozens of bank branches are set to be shuttered this year. RBS and TSB are among the brands who are reducing their high street presence. Labour claims 6,000 branches have closed since 2015.

We have covered the manifesto launches of the Conservative Party and Liberal Democrats. You can also read about what the Green Party manifesto and Reform UK’s policies would mean for your money.

Labour: banking hubs ‘make our high streets better off’

The Labour Party has pledged to “quickly” establish “at least” 350 banking hubs over the next five years. It said it would unlock these extra hubs by updating the existing qualifying criteria that governs whether a town or village can get one.

Doing so would “ensure fair treatment for bankless towns and underserved communities” it said. Starmer’s party claimed the current criteria had “unfairly denied” some communities the face-to-face banking services they were seeking.

It has also promised to give ATM provider Link and the FCA greater powers to identify places that are in need of a hub. It added that areas which don’t have a high street bank would be “first in the queue” to get one. The services provided by these hubs could be bolstered so that they can provide digital training and debt advice, the party promised.

Accusing the Conservatives of reducing high streets to “ghost towns”, Labour pointed to new research by London Economics - which was commissioned by banking hub operator the Post Office - that found 350 hubs would be worth £83m a year to the nation’s key thoroughfares, or £415m over five years.

This longer-term figure would rise to £593m if 500 hubs were created, the research stated. But the party added that these figures were likely to be underestimates given the evolution of the services banking hubs offer could unlock even more value for high streets.

Labour’s shadow chancellor, Rachel Reeves, said: “After 14 years of the Tories, many of our high streets have been reduced to ghost towns. This election is a chance to vote for change to end the chaos and decline and make our high streets better off. Labour’s plan for growth means bringing banking back to high streets, with hundreds of new banking hubs that can support local communities and their businesses.”

What have the other parties said about banking hubs?

Only the Conservatives and the Lib Dems have mentioned banking hubs in their respective manifestos.

Rishi Sunak’s party has sought to highlight its record by saying it has announced 100 banking hubs during its time in office. Its manifesto added that the Conservative government has legislated that banks and building societies which are considering shutting a branch have to make specific considerations before they do so. However, the Tories have not made any pledges about going any further with these policies.

Meanwhile, the Lib Dems have said that they want to support banking hubs and are committed to “protecting access to cash, especially in remote areas”. These would come under a “national financial inclusion strategy” that would require the FCA and the Prudential Regulation Authority to give greater consideration to ensuring that banking and financial services are open to everyone.

TSB has returned with its bank switching offer and this time, it has increased its cash bonus as it tries to tempt customers to move banks. 

You can get up to £190 when you switch to the provider (£100 upfront and up to £90 in monthly cashback), plus a lifestyle reward – making it the best switch bonus on the market. TSB's previous deal back in June offered up to £160, giving £100 upfront and £60 through its monthly cashback scheme. 

The comeback from TSB contradicts the recent movement in the bank-switching market, as we've seen First Direct's £175 deal and Lloyds' switch offer disappear in the past couple of weeks.  It means if you see a deal you like, you might have to move quickly. 

As always, the key is to check the small print and be aware of any hoops you’ll need to jump through, before deciding if the deal is worth it. Switching banks should be more about whether the bank meets your needs than the incentives on offer. Packaged bank accounts – where you pay a monthly fee in return for a range of extra perks – have become more popular so it’s not surprising to see them offered as part of bank switching deals.

So, what is TSB offering, how do you make the switch and how does it compare to the rest of the market? 

TSB bank switching offer explained

New customers who switch to TSB’s Spend & Save account (no fee) or its Spend & Save Plus account (£3 monthly fee) can get up to £190, plus a free reward. 

TSB’s deal is broken down into three legs. Here’s how to complete the full switch. 

To get £100

You will need to complete the following steps before 27 September to receive £100 from TSB:  

• Switch to TSB using the bank’s switch service 
• Make at least five debit card payments using your TSB account
• Log into the TSB mobile banking app at least once 

The £100 bonus will be paid to you between 15 October and 25 October, provided you manage to complete the steps above in time. 

To get an extra £90

To get a further £90, TSB is asking customers to take one more step. You will need to make at least 20 debit card payments, each month, for six months. 

Each month you qualify, you will receive £15 cashback – £90 in total if you qualify for the full six months. The bonus is automatically paid into your TSB account the following month.

You must be eligible for the £100 bonus to be eligible for the £90 free cash. 

Note: both of TSB’s eligible current accounts (Spend & Save or Spend & Save Plus) offer £5 cashback a month when you make 20 payments a month, anyway. But, as part of its switch deal, the bank is tripling that cashback, to £15. 

An extra reward from TSB 

TSB is also adding a shiny reward as well as its cash bonus. You can pick one reward from the three on offer: 

• A night away for two people with a choice of 90 to 100 hotels (including the Mercure, Village Hotels, Starboard and Crest hotels).
• A NOW Entertainment membership for six months for the Entertainment bundle. 
• Two Odeon cinema tickets every month for three months 

To get your hands on one of the rewards, you’ll need to be eligible for the £100 bonus and make a minimum of 20 direct debit payments in March 2025. Once you qualify, you can pick your reward in April 2025.

To be eligible for the reward you’ll need to keep your TSB account open until the end of March 2025. 

Note: You do not qualify for the TSB cash bonus and reward if you have taken advantage of a cash incentive with the bank since 1 October 2022. 

What perks come with TSB's current accounts? 

TSB’s current accounts included in the switch deal are packaged bank accounts, which means they come with a host of perks. 

TSB’s Spend & Save account current account is free and you get access to My TSB rewards. This includes discounts on takeaways, MOT, holidays and cinema tickets. Plus, depending on your credit history, you can get up to £2,000 in overdraft. You also get access to TSB’s savings pots, returning 2.92% AER. You can save in a maximum of five pots, and you can save up to £5,000 in each. 

The Spend & Save Plus account also qualifies in the switch deal but has a £3 monthly fee (£36 annually). This comes with everything you get with the Spend & Save account, plus fee-free spending worldwide with TSB’s debit card. Also, as part of the £2,000 overdraft perk, you can get the first £100 interest-free (depending on your credit history). 

How does TSB compare to the rest of the market? 

Only three deals remain on the bank switching market. TSB boasts the best cash bonus on the market, of up to £190. 

Barclays comes in second, returning a £175 bonus for those who switch to the Barclays Bank Account or the Barclays Premier Current Account. Co-operative Bank takes the last spot, offering up to £160. 

Here's how they compare. 

This is a rare appearance from Barclays on the bank switching front – and while £175 is an attractive sum, there are some caveats. Although the eligible bank accounts are free to hold, you are required to opt into Barclays Blue Rewards, which costs £5 a month. This is ideal if you want to take advantage of a host of perks, for example an Apple TV Plus subscription and cashback with retailers. Plus, you get access to its 5.12% Rainy Day Saver. 

Barclays Premier Current Account is also an eligible account, but to open the account, you need to have £100,000 in investments or savings with Barclays, or an annual income of £75,000 paid into the Barclays Current Account. 

The deal from Co-operative Bank works in two legs – get £100 upfront and then £60 cashback. However, the big downfall here is, you need to switch to its Everyday Extra current account, which costs £15 a month. It's ideal if you are on the hunt for a packaged bank account, as in essence, your first 10 months are 'free' when you take the £160 bonus into account. 

The bottom line is, there is no ‘best’ account to switch to, as it depends on what you need from a current account.  

To compare the full range of deals and offers, see our guide to banks offering the best switching deals.

To compare the full range of deals and offers, see our guide to banks offering the best switching deals. 

Banking trade body UK Finance has announced the key pledges it wants to see included in general election manifestos.

Arguing that the sector is a “global success story”, its chief executive David Postings said the organisation’s main asks would “help build a better society for all” after the election. It represents the views of 300 firms, including high street banks and financial services providers.

It comes as the major parties have started to draw their key battle lines ahead of the 4 July national poll. The Labour Party has been attempting to build support among the business community, while the Conservative Party has been attempting to win over older voters with its triple lock plus pledge and plans to reintroduce national service.

So, what do the banks want from the 2024 general election? We’ve rounded up their manifesto wish list.

General election winner should improve financial education, banks say

Among its main asks of the next government, UK Finance has outlined the policies it believes are needed to help support people and businesses. It says pledges that will help people manage and grow their money, get onto the housing ladder and get out of financial difficulty are needed.

The trade body said financial education should be a big priority for whoever occupies 10 Downing Street from 5 July. It added that such a move would improve household financial resilience, by giving people the “basic tools and knowledge” to “effectively” manage their money. It follows a report by the Education Select Committee which called for improvements to be made in the provision of financial education in schools.

UK Finance also said it wants to see measures that would boost the returns its members’ customers can gain. It has called for personal savings allowances to be reviewed so that savers can “build up a cushion” against any future cost of living crises. Of course, any growth in deposits would also benefit bank balance sheets.

Other ideas on its wish list include greater encouragement for people to become investors. The trade body wants to see UK households catch up on countries, like the USA and France, when it comes to the proportion of their financial assets that are tied up in equity. It said improvements to the tax regime would help in this regard, whilst also helping to grow the economy.

UK Finance: ‘urgent planning reform needed after the election’

In terms of the measures UK Finance thinks could boost the property market, it said the next government should announce a package of measures “early in the next Parliament” to expand housing supply. Chief among them would be reforms to the planning system, which would “unlock more housebuilding”, it said. The construction of new homes plummeted at the end of 2023, recent figures have shown.

Stamp duty reform is also a priority, the trade body said. It said lowering upfront buying costs would incentivise housing market activity and would free up buyers to improve the energy performance of their home - something it said could also be incentivised by growing homeowner access to financing. The organisation also urged a future government to allow buy-to-let lenders to access the Private Rented Sector Database, which contains information on landlords. Doing so would help to “raise standards” in the lettings sector.

Meanwhile, in terms of helping people to manage financial difficulty, UK Finance said its members should not be the only ones footing the bill for free debt management advice. It wants to see energy and utility companies forced to contribute so that the existing provision can be expanded. The trade body also said it wants greater regulation of the personal debt advice market - an area that’s not currently under the Financial Conduct Authority’s (FCA’s) remit.

Banks call for scam crackdown

Alongside its calls for more support for individuals, UK Finance also urged the next government to bring in tougher action on fraud. In its annual scams report, which was published on 22 May, it found fraudsters stole £2.3m a day from British consumers in 2023.

To stop the yearly £1bn flow of ill-gotten gains, the trade body said online platforms, internet service providers and telecoms firms should be compelled by a new Fraud and Scams Bill to work harder to stop fraud “at source”. These firms should also have to contribute to the cost of fraud reimbursement, and should be brought under the scope of the Economic Crime Levy, which helps to fund anti-fraud schemes. Banks currently foot the bill if their customers fall victim to scams.

UK Finance also said it wants to see Companies House reformed so that the UK is better protected from economic crime. It also wants to see tax incentives to help businesses invest in bolstering their defences against cyber attacks.

In terms of its broader aims for the victor of the next general election, the trade body wants to see Jeremy Hunt’s Edinburgh Reforms expanded through the appointment of a government competitiveness champion. These reforms unwound some of the regulations that were introduced in the wake of the 2008 Financial Crisis.

The champion would review and tackle the “burden” of regulations which “inhibit growth”. Doing so would allow the UK banking sector to compete internationally, and attract more banks to the UK, the trade body claimed.

NatWest's online banking and mobile app are back online after a service outage.

The high street bank’s retail and business banking customers had been unable to instantly access their current and savings accounts on Tuesday morning (28 May). The source of the issue has not yet been disclosed.

It means as many as 10 million customers may have been unable to instantly access their accounts. NatWest has apologised for the outage. Other NatWest Group brands, including the Royal Bank of Scotland and Ulster Bank, have been unaffected.

It comes as the banking giant is in the midst of a major digital transition, with its brands set to shutter more than 50 high street branches in 2024. The government is lining up a sell-off of its remaining stake in NatWest, with the proposed move likely to take place as early as June.

Digital banking issues 'resolved', NatWest says

Between 5.40am and 9.30am on Tuesday, retail and business customers who tried to log into the NatWest online banking portal or mobile app were greeted with an error message.

But, in an update, the bank said the issue has now been fixed. Its spokesperson said: "We are aware that some customers were experiencing difficulties accessing NatWest mobile and online banking this morning. The issue has been resolved and customers are now able to log in as normal. We apologise to customers for any inconvenience caused."

NatWest has previously stated that around 10 million customers use its mobile banking app. The issue that hit the bank may have affected even more people given the figure does not cover online banking users.

Those attempting to log into their bank accounts on Tuesday morning were met with a message that said: "Something went wrong". This was followed by text which read: “We’re sorry, some kind of error has occurred when trying to establish a connection between your device and ourselves.”

People were then told to close the app and try again. However, according to the bank’s ‘service status’ page, NatWest’s digital services are down. The bank initially encouraged its customers to use telephone banking or visit a branch.

Bank switching deals are back, with Lloyds Bank launching its latest offer of £200 – going head to head with the popular Nationwide switch deal offering £175 for new customers. 

But the banks are not stopping there, both banks are also offering links regular savings account paying over 6%.

While the Lloyds switching bonus, which comes into play on 2nd October, is the highest switching offer on the market right now - we compare the two top payers to see which deal is better and whether it is worth switching current accounts. 

Lloyds £200 switch deal - what is on offer?

From 2 October, Lloyds Bank will offer a £200 bonus when you switch your current account to one of its Club accounts. 

This includes the Club Lloyds (£3 a month), Club Lloyds Silver (£11.50 a month) or Club Lloyds Platinum account (£22.50 a month). 

The deal is available to new and existing Lloyds customers – but you won’t be eligible if you already hold a current account with Lloyds Bank. 

To be eligible for the £200 cash, you must:

• Switch to a Club Lloyds current account using the Current Account Switch Service (CASS) by 10 December 2024, and close your existing account
• Move over at least three active direct debits

The bonus will be paid within three days of the switch being complete.

The Silver and Platinum account imposes an extra £3 ‘monthly Club Lloyds fee. The good news is it can be waived providing that you deposit a minimum of £2,000 per month in your account. You can also waive the £3 monthly fee on the Club Lloyds account by doing this, so essentially the account is free to hold. 

You can make the switch online on the Lloyds website or via its mobile banking app. 

You won’t be eligible for this deal if you’ve received a switching incentive from Lloyds Bank, Halifax or Bank of Scotland Current Account since April 2020.

The Lloyds Club accounts also come with an attached 6.25% Monthly Saver. You can save up to £400 a month and the rate is fixed for one year. Providing that you save £400 a month for one year, you would earn £150 in interest. And you can access your cash whenever you like. Although Nationwide’s savings rate is better, it doesn’t work out as well. 

The Lloyds Club accounts comes with other perks too. Earn monthly interest of up to 3%, get up to 15% cashback at selected retailers like Sainsbury’s and Harvey Nichols, and choose one lifestyle benefit from a 12-month Disney Plus subscription, six cinema tickets a year or a Gourmet Society membership. The Silver and Platinum accounts also offer worldwide family travel insurance, AA breakdown family cover, mobile phone insurance and fee-free spending abroad. 

How does the Nationwide £175 switch compare?

Nationwide is offering £175 when you switch either its Flex current accounts – the FlexAccount, FlexDirect or FlexPlus account (£13 a month). 

To qualify, you must complete the switch within 31 days of requesting it, use the CASS to switch, deposit at least £1,000, switch over at least two active direct debits and make one debit card transaction. 

It is worth noting that Nationwide is clamping down on those who switch regularly to benefit from the free cash and will not pay you if or if you’ve received a switch incentive from any bank since 18 August 2021.

We have more details on the Nationwide switch offer in our article.

Nationwide’s current account also has a regular saver attached, offering 6.5% AER. While it’s 0.25% more than the Lloyds rate, you end up with less. You can only save up to £200 a month – so after a year you would earn only £84.50 in interest. Plus, you can only withdraw up to three times a year and the rate is variable, so it could change at any time. If it follows the wider savings market, there’s a risk the rate could fall. 

The current account also comes with some perks, for example 5% interest monthly on your current account balance for one year, on balances up to £1,500 a month (that’s £75 a month if you max it out). Plus, you could be eligible for 1% cashback on debit card transactions (capped at £5 a month). Other benefits include worldwide travel insurance cover for you and your family, AA breakdown cover in the UK and Europe and fee-free spending abroad.

Lloyds vs Nationwide 

From 2 October, there will be four bank switching deals on the market – two major high-street banks being Lloyds and Nationwide. So, how do both providers compare? 

Well, both offer good value – it depends on what you're looking for in a current account. If you’re on the hunt for the best savings rate, Lloyds comes out on top compared to Nationwide. But if you are on the lookout for interest paid on current account balances and cashback offers, Nationwide wins. Both accounts also offer a great deal of travel and insurance perks, so it comes down to what benefits serve you best. 

Other switch deals on the market come from First Direct offering £175 and the Co-operative Bank giving up to £150 away. There are a lot more hoops to jump through with the Co-op Bank. Whereas the First Direct deal comes with a 7% regular saver attached and fee-free spending abroad. 

The bottom line is, switching shouldn’t just be about the bonus on offer, but a current account that meets your needs. 

Fraudsters were less successful with their scam activity in 2023 but still managed to steal £3.2m a day, new figures from UK Finance have suggested.

The amount lost to scams and the number of fraud cases both fell year-on-year. However, criminals still extracted almost £1.17bn from their victims last year, a figure described as "shocking" by experts. Some newer forms of scam also saw marked increases in the number of successful, or partially successful, fraud attempts.

UK Finance, which represents most of the UK’s biggest financial services companies, said actions by its members had prevented a further £1.2bn of fraud losses where the victim was not involved in the scam itself - a rise of 7% compared to 2022. It means 64p in every £1 was saved from attempted unauthorised fraud last year, the trade body said.

It comes amid several warnings about potential criminal activity this summer. With major music events, such as Taylor Swift’s Eras Tour and Glastonbury, the UK’s official scam prevention agency Action Fraud has urged fans to be on the lookout for ticket fraud.

It has also warned of “increasingly sophisticated” tactics to illegally extract cash from holidaymakers. There are also concerns about the number of people being targeted over social media, as well as through WhatsApp and artificial intelligence (AI).

Scam losses down again, but APP fraud on rise

UK Finance’s figures showed there was a second consecutive year of falls in the number of scams and the amounts that were taken in 2023. The near-£1.17bn stolen last year marked a reduction of more than £40m (4%) on 2022’s data, and almost £145m (11%) on 2021’s losses.

Meanwhile, cases fell 1% overall to 2,967,363 year-on-year, and were 2% (50,000) lower compared to two years ago. But instances of Authorised Push Payment (APP) fraud - where victims are tricked into sending money to criminals - actually grew 12% to its highest recorded level on record 232,429.

Purchase scams, where people are tricked into paying for goods that they never receive, were the biggest driver of the jump in the number of APP cases. They leapt 34% to 156,000, with the amount lost to them growing 28% to £85.9m.

Another form of APP fraud, romance scams, also hit a record high after growing 14% year-on-year to 4,160 cases, with 84% of these occurring online through social media or dating apps. Criminals who convince their victims that they are in a romantic relationship managed to steal £36.5m - an extra £5m (17%) compared to 2022’s figure. This was also more than double the amount stolen in this manner in 2020, which was the first year UK Finance started reporting on this form of scam.

In better news, the sums lost to APP crimes dropped 5% (£25m) overall to £459.7m. Once business APP cases were stripped out, the figure came in 8% (almost £32m) below 2022’s figures.

One of the main reasons for this decline was a fall in impersonation scams. These occur when a criminal pretends to be from the police or a bank and convinces their victim that they need to transfer their money in order to keep it safe - often over the phone.

The amount lost to this sort of scheme plummeted 28% (more than £30m) year-on-year to just under £79m. The total number of cases dropped 37% to 10,594 - around half the number recorded in 2020. The trade body said the fall was likely to be down to greater awareness of impersonation scams among consumers, and the introduction of warning messages during mobile banking transactions.

The amount UK Finance members returned to victims grew 1% (almost £2m) overall to £287.3m. It means 62% of all APP losses were returned to victims - up from 59% in the previous year, and 45% in 2020.

Card ID theft and mobile banking fraud on the up

Unauthorised fraud, which accounts for a higher number of cases and losses than APP scams, saw falls, both in terms of the number of reports made and the amounts stolen. These scams involve criminals conducting transactions without involving their victims.

The 2,734,934 instances of this sort of crime were 2% (45,000) below the number recorded in the previous year. And the £708.7m was a 3% (£18m) fall. But again, newer types of scam were shown to be on the rise.

Card ID theft, which occurs when criminals open or take over a card account using stolen personal details or a fraudulently obtained card, saw a massive 74% rise in reports. The 142,442 cases that were reported to UK Finance members (60,000 up year-on-year), saw £79.1m stolen - a 53% (£27m) rise compared to 2022. However, there are hopes that recent moves by card providers to extend expiry periods on credit and debit cards will reduce this type of fraud by dint of reducing the number of physical cards being used across the UK.

Mobile banking fraud was also shown to be on the up, with reported incidents growing 62% annually to more than 20,000 cases - more than three-times the number recorded five years ago. Losses grew by a third to £45.5m, with the trade body putting the increase down to the growing use of personal finance mobile apps.

Reacting to the findings, Ben Donaldson, managing director of economic crime at UK Finance, said: “The money stolen funds serious organised crime and victims often suffer emotional damage as fraud is a pernicious and manipulative crime.

“The financial services industry remains at the forefront of efforts to protect customers, prevent fraud and support those who fall victim. With reimbursement rules set to change we risk even more money getting into criminal hands, unless the technology and telecommunication sectors take prop action to stop the fraud that proliferates on their platforms and networks.”

The rule change coming in from October 2024 will see banks forced to fully reimburse victims of APP fraud, up to a maximum of £415,000.

UK Finance fraud report findings 'shocking'

Experts said the figures showed criminals were switching up their tactics. Laura Suter, director of personal finance at AJ Bell, said the report highlighted "how scammers are targeting more victims for smaller amounts of money".

But she added that they may not paint a full picture of scam activity in the UK. “These figures all have to be taken with a pinch of salt, as we know that the official fraud stats are the tip of the iceberg when it comes to the true scale of fraud in the UK," Suter said. "So often people feel embarrassed or ashamed of being defrauded and therefore don’t report it, while others assume that nothing can be done to get their money back, so it goes unreported."

Suter urged any victims to contact Action Fraud and their bank. Doing so could mean they get some or all of their money back.

Consumer group Which? described UK Finance's findings as "shocking". Rocio Concha, its director of policy and advocacy, said: "[It] underlines the huge amount of work the government and businesses in different sectors must do to get a grip on this crisis as a new generation of AI-powered scams emerges.

“The Online Safety Act should finally mean accountability and multi-million pound fines for tech firms that fail to stamp out scams on their platforms - but these companies must act ahead of new rules taking effect, as every day that passes means more lives devastated by fraud.

“Fraudsters can only operate where banks and payment providers fail to put effective security measures in place so ministers must resist calls from finance firms to slash the scam reimbursement limit for victims of authorised push payment fraud by more than 90 per cent and instead tell them to get their houses in order. The government rightly prioritises growth, but growth built on the backs of scam victims and financial crime is not acceptable."

Concha called on the next government to make fraud prevention a "national priority" and said an anti-fraud minister role should be created to work across Whitehall departments.

Pocket money appears to be going out of fashion with children turning to side hustles to secure an income, new research has found.

According to analysis of customer data by NatWest and its youth debit card provider Rooster, the average weekly allowance sits at £3.78 - 3% (10p) down year-on-year. The number of kids getting a regular stipend has also dropped from 32% to 30%, the findings showed.

But the data revealed that youngsters have been turning to other income streams, with chores and entrepreneurship proving to be more lucrative than last year. It means a typical child is now pocketing £479.96 a year (£9.23 a week), with weekly earnings ranging from £5.68 for a six-year-old to £24.71 for a 17-year-old. These figures are broadly flat against the year.

It comes as families have battled through two years of soaring inflation, which has brought about the worst cost of living crisis in a generation. The rate of price hikes remains above the Bank of England’s 2% target, but earnings have been making up for some of the erosion of the value of the pounds in our pockets. We will find out how high inflation was in April later this week.

Despite these financial pressures, children have been good at locking their cash away in their piggy banks. Their savings rate sits at an average of 9.5% (£45.60) a year. MoneyWeek has rounded up the best child bank accounts, and has also put together advice on junior ISAs.

Average pocket money income just a ‘small fraction’ of kids’ overall earnings

NatWest and Rooster measured the spending activity of almost 308,000 children aged between six-years-old and 17 through the pocket money app they jointly run. The data covers transactions made between 1 March 2023 and 29 February 2024.

The annual ‘Pocket Money Index’ showed that pocket money now makes up just 14% of the average kid’s overall income, with today’s youth proving to be enterprising when it comes to how they get hold of cash. As well as charging extra for chores, they are squeezing more money out of their side hustles.

For example, cleaning the car raked in £3.25 on average - 32% (79p) more than it did 12 months ago. Meanwhile, paper round earnings increased 2% (45p) to £23.10 a week. It meant last year’s most lucrative entrepreneurial activity - reselling - was bumped into second place after the amount of money it typically generates fell 15% to £22.62 per week.

Although pocket money seems to have become a less popular way of rewarding children, parents have continued to stump up for one-off events and surprises. NatWest Rooster Money found the typical tooth fairy visit has become 9% more lucrative year-on-year, coming in at £4 a pop. Good behaviour rewards soared 12% to £8.79, while the returns on completing development tasks, like reading, grew 7% to £5.53 on average.

In terms of where this money was being spent, the app found most of it was finding its way into Amazon’s coffers. Tesco and McDonald's rounded out the top three. Apple dropped out of the top 10 most popular brands, with fashion marque Shein taking its spot.

NatWest Rooster Money: kids’ financial behaviour ‘completely changing’ 

Reacting to the figures, Will Carmichael - CEO and founder of NatWest Rooster Money - said they showed children’s finance in the UK was undergoing a significant shift.

He said: “One of the key revelations for me is the way kids’ money is completely changing shape. Although pocket money in its traditional sense is seemingly declining, that doesn’t mean it’s any less important; but rather that kids are increasingly complementing it in other, more sophisticated ways. This move to greater independence and maturity in their earning has been fantastic to see and bodes well for some bright, financially-confident futures ahead.”

One sign of greater maturity in children’s financial affairs was seen in their attitude to saving. Their savings rate of 9.5% was not far behind that of their parents, with the average adult putting away 10.2% of their income. NatWest Rooster found 55% of kids’ savings were being put towards specific targets, with gaming proving to be the most popular category. Saving for the future was the third most popular reason for saving, coming in behind holiday money.

Choosing the best bank for your money isn’t always straightforward. From switching incentives and customer service to branch access, spending benefits and the interest rates on offer, there’s a lot to weigh up before deciding where your cash goes.

We look at the most and least popular banks in a separate guide, where Nationwide stood out thanks to its lucrative cash bonus, Fairer Share payments and top savings rates.

New analysis from Which? sheds light on the best and worst UK banks and bank accounts.

We look at the winners and losers, so you can see where your provider sits.

The best UK banks – how they rank

Which? asked thousands of customers how they would rate their banking providers. The data is based on several parameters, including ease of application and service in a bank branch, over the phone, online and app-based, and customer helplines.

In top place is Starling Bank, which is one of Which?’s recommended providers for the seventh consecutive year. The bank ranks highly in customer service and current account users are happy with its online banking service. Starling also launched a new AI banking tool that helps customers learn more about their spending habits.

Monzo is another one of Which?’s recommended providers. The challenger bank impresses customers with fee-free spending abroad, cashback on eligible spending and competitive savings rates, but falls short in customer helpline services.

First Direct is also in the top rankings – it’s one of only two banks which received full five stars for customer service and telephone banking. It also offers fee-free transactions abroad, and has an attractive bank switching deal.

Among more traditional high street staples, Nationwide ranks highly thanks to its extensive branch network. The building society has pledged to protect its branches from closures until at least 2030.

We look at the full results in the table below.

Source: Which? data based on a survey from September 2025. N/A means not enough responses for a star rating.

The best UK bank accounts – how they rank

Which? has analysed different bank accounts offered by bank and building societies. The parameters it has tested include interest paid, fee-free spending, interest-free overdraft and monthly fee.

Source: Which?. N/A means not enough responses for a product rating.

How to choose the best bank account for you

Despite the above findings, banking expert at Which?, Chiara Cavaglieri, says: “For too long, the biggest banks haven’t had to work very hard to keep customers, but challengers such as Monzo and Starling have quickly made their mark. They’ve forced bigger providers to innovate, and the result is a market where different providers shine in different areas. Even if you can’t bear to ditch your longstanding bank, think about what's important to you.”

With so many accounts to choose from, there are several factors to consider before you make a decision.

While a bank switching deal means customers have extra cash to cover the Christmas festivities, Rachel Springall, finance expert at Moneyfactscompare.co.uk, warns against making hasty decisions.

“An upfront free cash injection is a great sweetener, but consumers should only ever switch accounts if the new deal offers them better value,” she said, pointing out that while free cash offers don’t last forever, customers shouldn’t feel pressured to switch.

If you’re after spending perks and travel benefits, it might be worth checking out the best packaged bank accounts.

Springall said: “If customers opt into a packaged account, one that bundles in benefits, then they could find it to be more cost-effective than taking out separate insurance policies elsewhere, like travel insurance or mobile phone insurance.”

We look at whether travel insurance is worth it in a separate guide.

“There is a plethora of different benefits to choose from, such as high interest current accounts, those with a competitive overdraft tariff, as well as packaged accounts with integrated insurance plans or even accounts that reward savers or spenders,” Springall added.

“Those consumers who plan to make frequent trips abroad can also find accounts that don’t charge them for using their debit card in an ATM or in-store, so they can avoid paying out on transaction fees compared to a more traditional bank account.”

FSCS scheme: Are your savings safe?

The Financial Service Compensation Scheme (FSCS) protects your savings and investments if a financial services firm goes bust.

This includes current accounts, savings accounts, Shariah-compliant accounts, ISAs, and more.

On 1 December 2025, the FSCS limit rose from £85,000 to £120,000. It means that you will be covered for up to £120,000 if your money is with an FSCS-protected institution.

You can check which institutions are covered on the FSCS website.

Royal Bank of Scotland (RBS) plans to close a further 18 of its 86 branches across Scotland this year, as part of an “industry-wide shift” to digital services and online banking.

An estimated 105 workers will be impacted by the bank closures.

The closures will join the 19 NatWest and RBS branches that already put their shutters down in February and March this year. 

There are another 51 NatWest, RBS and Ulster Bank branch closures scheduled for this year, which had already been announced.

In a statement, RBS said customers were using digital banking "more than ever before" with more than 80% of active current account holders using digital services.

It said there was an "industry-wide shift" to online services and investing in digital banking.

However, it maintained that “our branch network remains important to us”, and was investing £10.5 million into its remaining branches.

Esther O'Hara, industrial officer at the union Unite, called the branch closures a “massive blow” to the workforce and the communities the bank serves. “Many of these banks are situated in rural and remote communities where RBS customers rely on this vital service.”

She added: “We fear this latest announcement is just another stage in the phasing out of banks from our nation's streets in the race to make all banking operations digital, which is not suitable or accessible for many customers."

Other high-street banks are also shutting down branches, with Barclays set to close 57 branches in the next couple of years and the Lloyds Group shutting its doors to another 45 branches this year.

Meanwhile, Nationwide is set to shrink its overall branch network as a result of buying Virgin Money.

Full list of RBS closures in 2024

Here are the 18 RBS branches earmarked for closure in September:

• Aberdeen St. Nicholas
• Bathgate
• Cumbernauld Tay Walk
• Dundee Kingsway Circus
• East Kilbride
• Edinburgh Bruntsfield
• Edinburgh Leith
• Edinburgh Nicolson Street
• Glasgow Cardonald
• Glasgow Charing Cross West
• Glasgow Rutherglen West
• Helensburgh
• Inverness Chief Office
• Inverness Eastgate
• Largs
• New Deer
• Newbridge
• Wishaw

RBS is also set to shut its Farnborough branch on 15 October, as previously announced.

How to access your money if a branch has closed near you

If your bank has closed or is about to close the branch near you, it could be worth switching bank accounts to a provider that has a branch close by.

You may also be able to take advantage of a switching bonus - in other words, free money - by moving your current account.

If you're keen to stay with your bank or building society though, there are other ways to access the money in your account. 

About 11,500 Post Office branches across the UK offer banking services, such as paying in and withdrawing cash, depositing cheques and checking your balance. 

Banking hubs are also on the rise. You can use the hubs for personal banking, for example. depositing or withdrawing money, business banking and making bill payments. 

RBS said it was “continuing to invest in shared solutions like the Post Office and banking hubs” when it announced its branch closures yesterday.

The Post Office operates the service and the hubs are open Monday to Friday. They also provide separate rooms for more private matters. 

Currently, there are 37 banking hubs open across the UK.

“No regard for the workforce and the customers”

Unite also criticised the NatWest Group, which owns RBS, in light of it being partly owned by the taxpayer.

O'Hara said: “The Natwest Group is an extremely profitable bank with its latest pre-tax profits rising by 20% to £6.2 billion last year. It remains a bank which the taxpayer still owns by around 35 per cent, yet there is very little return for the public and no regard for the workforce and the customers the bank is supposed to serve.”

The government is planning to sell off part of its stake in NatWest this summer, possibly as early as June.

It means the retail offer, open to ordinary investors, would take place before the general election.

Barclays has brought in a limit that affects the amounts its in-branch customers can deposit in cash.

Aimed at cracking down on financial crime, the high street giant has imposed a new £20,000 limit for all personal accounts, including children’s savings accounts. This cap will refresh annually.

The move follows a warning from the bank earlier this year that is has seen a rise in investment scams. The news also comes as Barclays continues to reduce the size of its branch estate, with 57 sites set to close by 2025. It also recently acquired Tesco Bank in what is expected to be a £600m deal.

What are Barclays’ new cash deposit rules?

Barclays’ new cash deposit limit means no one is able to pay more than £20,000 a year into their personal accounts using a bank branch. This rule includes children’s savings accounts and joint accounts, but does not apply to business accounts.

The cap came into force on 1 July 2024, and will refresh every year in January. It means the £20,000 cap initially applies for a six-month period (until January 2025).

The new rules apply to deposits handed in over the counter, or through a self-service device, with each cash deposit counting towards the annual total. If you have a joint account with one other person, it means you are now only able to physically put in a maximum of £10,000 each. Online transactions and cheque deposits are unaffected by the change.

It comes on top of a £10,000 cash deposit limit at Post Office branches offering Barclays' banking services. Any deposits made via these branches also count towards the Barclays limit.

Why has Barclays introduced a cash deposit limit?

Explaining the rationale for the changes when the cap was announced in April, a Barclays spokesperson said they would help the bank to ensure its in-branch services are not being used for nefarious activities. For example, the new rules theoretically make it harder for money laundering to take place.

The spokesperson said: “We take financial crime and our responsibility to prevent money laundering seriously. We have contacted customers to let them know that from July we are making some changes to the amount of cash customers can deposit into their Barclays accounts. We have set the limit at an amount that will allow us to better identify suspicious activity, while still ensuring our customers have access to cash.”

It comes after the Financial Conduct Authority (FCA) wrote to more than 1,000 financial services firms in March 2024 to remind them of their anti-money laundering responsibilities. The regulator said these companies, which included lenders, safe custody providers, brokers and financial leasing companies, were “still not getting the basics right” when it came to looking out for financial crimes.

Regulators and big-name banks have become much more alert to financial crimes, like money laundering, in recent years after several high-profile cases involving household names. In 2018, Danske Bank was caught out for funnelling ill-gotten gains through a branch in Estonia.

And in 2022, Credit Suisse was found to have laundered money for a Bulgarian drugs ring. This, and several other scandals, contributed to the Swiss giant’s collapse in 2023 following a wobble in market confidence in the global banking system.

Do other banks have cash deposit limits?

With its new cash deposit limit, Barclays has become one of the few major banks to have an in-branch cap. Here are the personal deposit rules at some of the other high street groups and brands:

• HSBC: no in-branch limit, although customers going via a Post Office can only deposit up to £3,000 a day, and £20,000 a year.
• Lloyds: no in-branch limit, however people can only deposit up to £5,000 a day at mobile branches. In Post Offices, there is a monthly £2,955 limit, and an annual maximum of £20,000, if you have your debit card with you. Without it, you can only deposit £1,000 in one go.
• Nationwide: no over-the-counter limit, but you cannot deposit more than £2,500 into an in-branch machine per day.
• NatWest: there is no over-the-counter limit. You cannot deposit more than £3,000 a day, or £24,000 over a rolling 12-month period, at a Post Office or via any deposit machine.
• Santander: a maximum of £20,000 can be deposited per day. At a Post Office, the limit is £10,000. There is an annual rolling limit of £240,000.
• TSB: no in-branch limit, but there are daily deposit limits of £1,500 and £10,000 per year in Post Office branches.

Nationwide has completed its takeover of Virgin Money, creating the UK's second-largest mortgage and savings group, and affecting one in three people.

The £2.9 billion deal, announced back in March, will see the two brands initially run as separate entities, with the Virgin Money brand phased out over six years.

It marks the biggest UK bank takeover since the 2008 financial crisis - and also a rare one, given this is a building society acquiring a listed bank. 

In an email to customers last week, Nationwide said: "Nationwide is still a mutual and owned by our members. All of the profits generated by Virgin Money will be retained for the benefit of customers and, for the first time in the UK, a full-service business bank will be part of a large mutual."

Nationwide is known for giving its profits back to its members - like the £100 payment it has made two years in a row - while Virgin Money is known for its investment service and reward points scheme.

They have both launched competitive deals in recent months, such as Nationwide's £175 switching offer, and Virgin's 10% interest current account.

We look at the acquisition in more detail. What does it mean for branches, and also access to the Financial Compensation Services Scheme (FSCS)?

What does the takeover mean for customers?

There are no immediate changes for customers of either bank. However, the Virgin Money brand will eventually be phased out.

The brand will be retained for the “medium term”, but will disappear after six years, by which point it will have been rebranded by Nationwide.

The building society has pledged to not make any material changes to Virgin Money's 7,300-strong workforce "in the near term".

In time, there could be changes to products, such as current accounts, savings accounts and cash ISAs. The future of Virgin Money’s investment service, launched last year, is also unclear.

What does it mean for Nationwide and Virgin Money branches?

The acquisition has created a banking group with 696 branches, second only to Lloyds Banking Group.

Customers will understandably be worried about branches closing, given the hundreds of branches that banks like Barclays, HSBC and NatWest have shut over the past few years. Last month, Lloyds Banking Group said it would close another 55 branches next year. 

However, Nationwide chairman Kevin Parry said last week: "I can also confirm that Virgin Money branches are now included in our Branch Promise. This means that everywhere there is a Nationwide or Virgin Money branch, we promise to still be there until at least the start of 2028."

I'm a Nationwide customer - can I do my banking in a Virgin Money branch?

Nationwide customers won't be able to use Virgin Money branches for Nationwide transactions, although the building society said that "over time we expect to broaden the range of services we offer".

Parry said in an email to Nationwide customers: "You will benefit from the Virgin Money expertise in personal lending and credit cards, as well as business banking and accounts for clubs and societies."

How does the takeover affect the FSCS protection?

Customers who have savings with both Nationwide and Virgin Money will continue to benefit from the maximum protection offered by the Financial Services Compensation Scheme (FSCS) on each of their Nationwide and Virgin Money accounts.

The FSCS compensates customers up to £85,000 if the bank or building society they're using goes bust. 

The assurance from Nationwide means that if, say, you have £70,000 with Nationwide and £80,000 in a Virgin Money account, and Nationwide went bust, you would receive all your money back, rather than having the total payout capped at £85,000. 

Why did Nationwide buy Virgin Money? 

Virgin Money struggled last year, with shares trading below levels seen in 2021, and a slump in full-year profit reported in November resulting in a series of downgrades from analysts.

In contrast, Nationwide has enjoyed an earnings boost on the back of stronger net interest margins thanks to higher interest rates. 

In a joint statement to the London Stock Exchange in March, Nationwide said the takeover would “deepen its products and services faster than could be achieved organically”. 

Virgin Money was Britain’s sixth-largest retail bank by total assets with 6.6 million customers. The acquisition will bolster Nationwide’s mortgage, savings, current account and credit card divisions, as well as broaden its business banking offering.

What’s the difference between a building society and a bank? 

The main difference between a bank and a building society is that building societies are owned and run by their members – in other words, the people who bank, save and borrow with them. 

A listed bank is floated on the stock market, so is owned by its shareholders.

Building societies sometimes offer better interest rates than banks. On the other hand, banks may be more digitally-focused and have a larger product range.

The stock market statement back in March acknowledged that Virgin Money had an ambition of becoming the UK's best digital bank.

If you’re a Nationwide customer and wondering if the Fairer Share scheme will continue, which saw eligible members receive a £100 bonus last year, chairman Kevin Parry said the deal would “put us in a stronger position to continue to provide Fairer Share Payments to eligible Nationwide members, and offer rates for mortgages and savings that are, on average, better than the market average."

Children are growing up in a world that is increasingly cashless, so the days of giving them a tenner as pocket money at the end of the week are numbered. 

While King Charles’ face will start appearing on UK banknotes this summer, it’s very possible that your kids won’t ever really come into contact with one. 

There are plenty of ways to put cash away for your child and to give them money so they learn how to budget and manage their finances.

You may have opened a child savings account or a junior ISA for them when they were born, starting their savings journey. 

But if you put their pocket money into an ISA each month where they can’t access it until they’re 18, they’ll probably be less than impressed. 

So, once they reach an age where they’re looking for a little more financial independence, it might be a good idea to help them open a junior current account, where they can access some of their funds. 

Many providers now allow children to do this from as young as 11.

Why should I open a child bank account?

Opening your first bank account or having access to your first debit card is not just a memorable rite of passage, it’s also an important step in your financial education. 

“According to a well-cited Cambridge University study, children’s financial habits are formed by the age of seven”, says Louise Hill, co-founder and chief executive of pocket money app GoHenry.

This means that, “with the lack of financial education on the curriculum in primary schools in England, kids are currently missing out on a huge opportunity to master the money skills that will influence the financial decisions they make for the rest of their lives”, she adds.

“Kids who aren’t good with money become adults who aren’t good with money, and we need financial education from a young age to break this cycle”, in Hill’s view.

Having a bank account can help tackle this challenge by teaching kids the importance of saving and budgeting from an early age. But choosing the right provider and account is important, particularly if you are worried about the risks that could come with this newfound freedom. 

There are a range of options available to parents who want to instil good money habits in their children while also giving them some financial independence, from child current accounts to pre-loaded debit cards.

We answer some frequently asked questions about these products, before highlighting the providers that offer them.

How do I choose a child bank account?

When choosing a child account, many of the considerations are the same as when opening an account as an adult. You might want to look at the interest rate being paid and the level of customer service. 

The Bank of England base rate is currently 5.25%, having increased 14 times between December 2021 and August 2023. This means banks are now paying higher rates to account holders, but it is still worth shopping around to make sure you get the best deal. If you sit down with your child to do the research together, you could even turn it into a lesson on how to be financially savvy. 

On top of this, there are a few additional features you may want to consider when choosing a child account. 

For example, when you open a junior account with Lloyds, HSBC, Halifax or Bank of Scotland, you automatically open a linked child savings account too. The idea is that this can help your child develop a good savings habit from an early age. 

Security features are another important consideration. You should look carefully at the terms and conditions on each account to find out how much your child will be allowed to spend or withdraw in a single day. 

If your child isn’t quite ready for a bank account, then a prepaid debit card – also known as a pocket money card – could be a good alternative. Providers like GoHenry offer these, and allow you to pay pocket money to your children digitally. 

“Giving digital pocket money allows children to practise financial independence in a safe environment and with parental oversight, forming good habits they can take into adulthood”, explains Hill. 

“With pocket money apps, kids are able to easily track and automatically set aside their savings, so they can see their money grow which, in turn, empowers them to make smarter money choices”, she adds.

What is the difference between a child current account, a child savings account, and a junior ISA?

There are a few different types of accounts you can open for your child, depending on whether you are looking for a day-to-day spending account or more of a savings vehicle.

Child current accounts should only really be used for pocket money, any part-time money your child starts earning aged sixteen, and day-to-day spending. 

Once the balance in the account reaches a larger sum, it would be better off in a child savings account or, even better, a junior ISA, where the interest rate will usually be higher. 

The same goes for adult accounts – large sums of cash are better off in a savings account or an ISA. If you’re looking to polish up your own finances at the same time as your child’s, we’ve pulled together a roundup of the best adult rates on the market right now in our monthly savings guide and monthly cash ISA guide.

The benefit of a junior ISA over a child savings account is that it is a tax-efficient way of saving and investing. Your child can put up to £9,000 in a junior ISA each tax year, and any income and capital gains will be shielded from the taxman. 

If your child is young and has a long investment horizon ahead of them, they might even want to opt for stocks and shares in their junior ISA rather than cash, as investment returns almost always beat cash over the long run. This was even the case last year, despite rising interest rates.

Will I have to pay tax on any interest my child earns? 

Like adults, children do have to pay tax on any interest they receive. On most accounts, the rules are the same as with adult accounts:

• Assuming the child doesn’t earn any money, they can use up their personal allowance of £12,570.
• Again, assuming they don’t earn any money, they will also qualify for a £5,000 starting rate for savings. This is available to anyone (child or adult) who earns less than £17,570. 
• In total, this means your child can earn up to £17,570 in interest before they have to start paying tax.

Given that most children don’t earn money, it is unlikely that their savings will be large enough to generate this much interest in a single tax year.

However, parents beware. If you have gifted your child the money in their account, you will be liable for tax as soon as they start earning £100 interest on the money in question. Familiarise yourself with the rules to avoid being slapped with an unexpected tax bill.

Do child bank accounts have spending controls?

Building financial independence is an important part of growing up, and opening a bank account is a crucial first step. However, giving your child free reign can be a daunting prospect.

Luckily for parents, child accounts have a range of spending controls.

First and foremost, child accounts do not offer an overdraft facility, so you don’t need to worry about your child getting into debt. 

Furthermore, some providers such as Lloyds, Halifax, and Bank of Scotland let parents keep an eye on their child’s spending through their mobile banking app. They even have a feature which blocks children from spending money in certain places, such as bars, pubs and off-licences. 

Pre-paid child debit cards, which are different to child bank accounts, often come with similar controls. For example, Natwest’s Rooster Money card (for children aged 6-17) and GoHenry’s card (for children aged 6-18) both allow you to set spending limits. You can also receive real-time notifications every time your child makes a purchase.

What happens when my child turns 18?

Most banks will automatically convert your child’s account to an adult account when they reach a certain age. This won’t always be 18. For example, the Santander 1|2|3 Mini Current Account does this on their nineteenth birthday. 

If you decide to opt for a child debit card provider like GoHenry, this won’t happen. Instead, your child can continue using the card until it expires, at which point you will need to contact GoHenry to cancel the account. 

Which providers offer child bank accounts? 

The good news for parents is that quite a few providers offer this type of product, so you have a fair amount of choice when deciding where to open an account with your child. We share a round-up of nine providers below.

Natwest Adapt Account 

• Age range: 11-17
  
• Interest rate: 2.70% AER
  
• Important information: If your child is under 16, you will need to open an account with Natwest in order for them to qualify, if you don’t have one already. 

Starling Bank 

• Age range: 16-17
  
• Interest rate: 3.25% AER on balances up to £5,000 

Lloyds Smart Start  

• Age range: 11-15
  
• Interest rate: Interest is not earned on the current account, only the linked savings account.
  
• Additional features: With Smart Start, your child gets two accounts with one application – a spending account and a savings account. The idea is that this helps to establish a healthy savings habit at an early age. The savings account pays 3.15% AER on balances of £1-1,000, and 1.40% AER on balances over £1,000. Parents can also keep tabs on their child’s spending through their mobile banking app. Spending is blocked in over-18 outlets.
  
• Important information: For your child to qualify, you will need to open a current account with Lloyds, if you don’t have one already. 

Barclays: BarclayPlus Account

• Age range: 11-15
  
• Interest rate: 0.10% AER on balances of £1-1,000; 0.60% AER on balances of £1,000 plus. 

Nationwide FlexOne Account

• Age range: 11-17
  
• Interest rate: 2.00% AER on balances up to £1,000

HSBC MyMoney Account 

• Age range: 11-17
  
• Interest rate: Interest is not earned on the current account, only the linked savings account.  
  
• Additional features: With MyMoney, your child gets automatic access to a MySavings account too. This linked savings account currently pays 5.00% interest AER. 

Santander 1|2|3 Mini Current Account

• Age range: 13-17
  
• Interest rate: 1.00% AER on balances up to £999.99; 2.00% AER on balances from £1,000 - £1,499.99; 3.00% AER on balances from £1,500 - £2,000
  
• Important information: Under 13s can have an account, but it will need to be opened in trust by an adult and managed on behalf of the child. 

Halifax Expresscash Account

• Age range: 11-17
  
• Interest rate: 0.50% AER on balances from £1-£999.99

Halifax Money Smart Account

• Age range: 11-15
  
• Interest rate: Interest is not earned on the current account, only the linked savings account.  
  
• Additional features: With Money Smart, your child gets automatic access to a linked savings account. This linked account currently pays 3.40% AER on balances of £1, and 1.44% AER on balances over £1,000. Parents can keep tabs on their child’s spending through their mobile banking app, and spending is blocked in over-18 outlets.

Bank of Scotland 

• Age range: 11-15
  
• Interest rate: Interest is not earned on the current account, only the linked savings account.  
  
• Additional features: With Smart Start, your child gets two accounts with one application – a spending account and a savings account. The savings account pays 3.15% AER on balances of £1-1,000, and 1.45% AER on balances over £1,000. Parents can also keep tabs on their child’s spending through their mobile banking app. Spending is blocked in over-18 outlets.
  
• Important information: For your child to qualify, you will need to open a Bank of Scotland current account with Vantage, if you don’t have one already. 

Alternatives to a child current account

If your child isn’t quite ready for a bank account, you could explore these pocket money cards instead. 

One thing to bear in mind is that these cards aren’t typically covered by the Financial Services Compensation Scheme (FSCS). This means that you could lose any money held on them, if the provider runs into financial difficulty.

Natwest: Rooster Money (age 6-17)

Natwest offers a prepaid debit card service called Rooster Money, intended for children aged 6-17. Parents can top the card up with money from their own account. 

Anyone can get a NatWest Rooster Money card for their child, regardless of whether they are an existing NatWest customer or not. 

If you are a NatWest customer, you can get up to three Rooster cards per family for free. If you aren’t an existing customer, however, the subscription fee is £1.99 a month or £19.99 a year.

This card comes with a range of security features, including payment limits and real-time spending notifications.

GoHenry (age 6-18)

GoHenry also offers a prepaid debit card service for children aged 6-18. 

After a 30-day free trial, parents will need to pay a subscription fee of £3.99 a month. This includes one free monthly top up. After that, additional top ups will cost 50p a time.

If you opt for the “plus” service for £5.99 a month, you can unlock additional features like 4.50% interest (AER) on savings and unlimited free top ups.

All GoHenry cards come with spend notifications, which parents receive directly to their phone. There are also flexible parental controls that you can access within the app. 

Banks and building societies often try to lure customers in with lucrative switching offers – but what are the effects on your credit score?

The total number of people using the Current Account Switch Service (CASS) hit 1.05 million in 2025 – the third year in a row the number of switches has reached seven figures.

The latest quarterly data shows Nationwide had the highest number of net switching gains, factoring in gains and losses, followed by Monzo and NatWest.

Switching current accounts brings with it a range of perks, including access to better online or mobile banking services, higher interest savings accounts and lucrative cash bonuses.

The top current bank switching deals are offering customers up to £750 in free cash, and some have made thousands of pounds from hopping between accounts.

But there are negatives to switching too, including the potential impact on your credit score. It could possibly affect your chances of having a mortgage application accepted as well. We reveal all the advantages and disadvantages of ditching and switching below.

Does bank switching affect your credit score?

The main issue to be aware of if you’re considering a switch is any impact it could have on your credit score.

When it comes to applying for financial products and lending, there are two types of credit checks – soft and hard.

What is a soft credit check?

A soft credit check is a light touch preview by a lender of your credit worthiness without a full check, and as such doesn’t leave a trace behind that could impact your credit score.

They are often used by lenders or a comparison website to give you an idea if you’re eligible for some kind of borrowing – such as a loan or mobile contract – before you formally apply and to help you compare credit products available to you.

What is a hard credit check?

A hard credit check can only be completed with your permission when you make a formal application for credit. It involves a review of your credit report and may affect your credit score.

John Webb, head of consumer affairs at credit reporting agency Experian, said: “Applying for any kind of credit, even a current account, usually involves a credit check that leaves a hard search on your credit report.

“Lenders can see these, and several switches close together may suggest you’re under financial pressure – so they could lower your score. It’s generally a good idea to space them out as much as possible.”

Can you open a bank account with a soft credit check?

There are some banks that allow you to switch and open a current account with only a soft credit check.

However, this is usually just for an account. If you want to gain access to any additional features, such as an overdraft, it’s likely you’ll need to do a hard credit check.

CASS says the credit scoring impact of switching normally lasts up to six months after which it disappears off your record, however multiple switches within a six-month period will mean your credit score takes longer to return to normal.

CASS also says a full switch may be better for your credit score than applying for an additional account to the one you already hold. It says this is because closing your original account can lead to a net positive contribution to your rating.

After a switch takes place, the organisation says your credit score will be protected by your bank or building society if any issues disrupt any standing orders or direct debits that are due to come out of your account.

Does loyalty pay?

There are many reasons why it can be convenient to remain loyal to your bank or building society.

For example, your current provider may have a conveniently located branch, their service could be exemplary, or you may simply trust them with your money.

In some cases, it can really pay to stay. For example, banks will often only offer you access to a savings account with a bumper rate if you’re an existing customer.

In recent years, millions of Nationwide customers have had an incentive to stick around, as they could get a £100 annual member bonus via the Fairer Share Payment. The bonus has been paid to eligible customers for three years in a row but it’s not guaranteed, and there are eligibility rules so you might not qualify straightaway if you switch your current account.

Loyalty might help your credit score too. Experian told MoneyWeek that it attributes credit score points based on the average age of the accounts a person holds. So, accounts that have been kept open for longer can have a positive impact on your report.

Is switching worth it?

While the free cash offered as a switching bonus is certainly attractive, it’s also worth weighing up whether your existing account really delivers for you when it comes to perks (e.g. cashback and exclusive accounts), interest rates and customer service. If another account scores well on all of these metrics and offers a switching bonus too, it’s definitely worth considering.

On top of the pros and cons of the account, you should also think about whether you will need your credit score to be at its best over the next 12 months. For example, if you have a mortgage application coming up, it may be a good idea to hold off switching until it’s done.

Craig Tebbutt, financial health expert at credit rating agency Equifax, said: “If you’re applying for a mortgage, it is usually best to avoid unnecessary switches beforehand as underwriters prefer stability and may scrutinise recent account changes, searches or overdraft use.”

It is worth considering that under the Current Account Switch Guarantee, any charges or interest incurred due to issues with your switch will be refunded. Your new bank will also decide whether you should receive compensation over and above this amount.

Of all UK current accounts, over 99% are covered by CASS, so it is unlikely the current account you want to switch to won't be covered by this guarantee.

A new time limit could be introduced on consumer complaints as part of an overhaul of financial regulations.

The Treasury is consulting on changes to how complaints are handled by the Financial Ombudsman Service (FOS), particularly when major issues are uncovered.

It comes as chancellor Rachel Reeves used her Mansion House speech to unveil Leeds Reforms that focus on reducing regulatory red tape.

The FOS has previously warned of a "concerning" rise in complaints made about financial services and the reforms aim to give it more flexibility.

Sarah Pritchard, deputy chief executive at the FCA, said: “When something goes wrong, it is right that people are compensated.

“But a lack of certainty in the financial redress system can hold back investment and innovation. Our changes will help create a system that is more predictable for firms and gives consumers quick and fair compensation where they’re owed it, supporting UK growth.”

How are redress rules changing?

Complaints about financial products are at record levels and concerns about motor finance commission, fraud and scams and credit cards are at new highs, according to the FOS.

This can slow down the time it takes to deal with issues and regulators want to instead identify problems before they become a problem.

The Treasury is proposing an absolute time limit in legislation that will require complaints to be brought within 10 years of the conduct complained of.

It said: “This will avoid the risk of the FOS having to deal with a high number of historic cases, which can be challenging to resolve quickly and effectively.”

The Treasury also wants to give the FCA more powers to investigate mass redress events without wider consultation and let the redress scheme dismiss collective groups of complaints by referring them to the FCA for regulatory action instead.

This will give the FOS time to deal with other issues.

The level of compensation may also change.

The FOS said it will be changing the interest rate it applies to some awards it directs businesses to pay, from 8% to track the Bank of England’s base (average) rate +1%. Awards will still reflect any actual losses the consumer has suffered, the FOS said.

James Dipple-Johnstone, interim chief ombudsman at the Financial Ombudsman Service, added: “These reforms mark a significant step in modernising the UK's redress system, making it more agile and responsive and a much better fit for today's economy. Our changes will bring consistency and predictability for businesses and consumers, enabling us to better focus on our core purpose – resolving individual disputes quickly and with minimum formality.”

The consultation closes on 8 October 2025.

How to complain about financial providers

The FOS should be the last resort if you have a complaint about a regulated financial product or service.

The first step is to complain to your provider in writing either by email or letter to their complaints department. You can only complain about regulated products provided by firms approved by the Financial Conduct Authority (FCA). That includes residential mortgages, insurance products, pensions and investments, although you can’t complain about stock market performance.

“Tell them what happened and when, and ask them to put things right,” says the FCA. Providers need to give a response within eight weeks on if your complaint is successful, how it will be resolved or why they need more time to investigate.

If you are unhappy with the decision or have not had a response after eight weeks, you can then complain to FOS. Complaint forms can be downloaded from the FOS website.

It will consider your issues and contact the financial firm to get their side before making a decision whether to uphold the complaint and award compensation. The latest FOS data shows it upheld 37% of complaints in the first quarter of the 2024/25 financial year.

There are no costs to complain to your financial provider or to the FOS. You don't need to enlist the services of a professional representative to complain. Claims management companies can also help with complaints on a no-win-no-fee basis but could take a large chunk of any compensation you receive.

Another option if you are unhappy with complaining to your financial provider or the FOS is to take legal action. But this will cost you as you may need to pay for legal advice and cover court fees.

NatWest and Royal Bank of Scotland (RBS) have named a further 19 branches that will shut in 2024 in addition to 142 already set for closure this year as the brand claims more customers are moving to digital banking.

There have been 578 branch closures across the UK alone this year - Barclays leads with 185 site closures in 2023, followed by 112 Lloyds branch closures and 72 Halifax sites closing their doors. 

NatWest says the decision to close a further 19 branches comes as the average number of transactions made in its group branches fell by 60% in the four years to January 2023, as more customers use the app for banking. 

It might be worth switching banks if you are looking for a branch near you, with Nationwide offering up to £200 when you switch to them. 

Find out if a Natwest or RBS branch is closing near you. 

Full list of Natwest and RBS branch closures in 2024

The Natwest Group has announced 18 NatWest branches will close on various dates across the UK in 2024 and one RBS branch in Sauchiehall Street, Glasgow, that will shut on 19 November 2024.

Here is a full list of Natwest site closures in 2024. 

Where can you bank if a branch near you has closed? 

While switching bank accounts to find a bank that has a branch near you is an option, there are easier ways to bank if you prefer to go to a branch and do your banking. 

You can bank money at any Post Office’s 11,635 branches across the UK. 

Due to branch closures, a rise in banking hubs are appearing across the county. Banking hubs let you deposit and withdraw money regardless of where you bank. 

The counter service is operated by the Post Office, which is open Monday to Friday for high-street bank and building society customers. 

For more pressing issues, the banking hubs also have private rooms where customers can speak with community bankers. 

There are plans for 61 banking hubs to open across the UK, with seven already open. 

Users of iPhones are being offered an easier way to keep an eye on their bank account balance.

Many smartphone users will have banking apps on their phone that let you monitor your spending and send and receive money.

But logging in can be time consuming as you need to remember passwords and often go through two-factor authentication such as receiving text messages to confirm your own identity.

That can be frustrating if you just want to know how much is in your account.

A new Apple Wallet feature allows users to connect their credit and debit cards already stored in the Wallet app to their online accounts.

Users will then be able to see their up-to-date balance and other information without having to go to their dedicated banking app.

We have all the details on how it will works and whether it is safe.

How to check your bank balance in Apple Wallet

Many smartphone users are familiar with using their device to make contactless payments.

You upload your card details to your phone’s wallet and simply tap to pay.

The new feature will link these cards to the rest of your account information using open banking technology.

This effectively gives other parties access to your financial data to help you have more control of your money.

It is available if you bank with Barclays, Barclaycard, First Direct, Halifax, HSBC, Lloyds, M&S Bank, Monzo, NatWest and Royal Bank of Scotland.

The information will be accessible in the Wallet app, but will also appear when a user makes a purchase via Apple Pay online or in the app.

Apple said the new feature could help users make more informed purchases and get quick, simple access to see key information about their finances to help with budgeting.

iPhone users running the latest versions of iOS 17.1 will have access to the technology.

How secure is Apple Wallet?

The tech giant said the new feature had been built with privacy and security in mind and highlighted that before it is enabled users must authenticate through their financial provider’s website or app and consent to connect their accounts to their cards in the Wallet app.

Apple also confirmed that all user account balance information, transaction history and other account details are stored on device and not on Apple servers.

"By enabling users to conveniently access their most useful account information within Wallet and at the time of their purchase, they can make informed financial decisions and better understand and manage their spend,” says Jennifer Bailey, vice president of Apple Pay and Apple Wallet.

"We look forward to working with UK partners under the Open Banking initiative to help users better their financial health, and provide more ways in which banks can deepen their relationships with customers."

This deal is no longer available. Please see our best offers for switching banks guide for up-to-date deals. 

Bank switching services have been coming in waves this year, with some banks paying up to £205 for moving your everyday banking to them.

If you are looking to switch your current account, then this is a great way to bag some ‘free’ cash - though you will often have to close your existing current account and use the bank switching service to get the bonus. 

This week, high street giant Barclays has jumped in on the act, hoping to draw new customers in with a £175 switch bonus when they move their current account to Barclays. The account also gives you access to one of the best savings rates on easy access savings.

The incentive follows Barclays results last week, which revealed UK deposits in current accounts at the bank dropped 6%. But can the bank bring in new customers with its new switching bonus alongside a generous  5.12% savings rate for easy access? 

How to get the £175 Barclays bonus 

To get the bonus, you will have to close your existing current account and switch to Barclays using the Current Account Switch Service. The service is free and promises to shift your direct debits and other payments for you within 7 days. 

To qualify for the cash bonus, you must:

•  Open an account via the Barclays app (open a new account or join Premier Banking) 
•  Bring across at least two direct debits 
•  Join the Blue Rewards Scheme - you must deposit at least £800 a month to qualify for this 
• Sign up to online/mobile banking at £5 a month - but you get this back via cashback if you have a minimum of two direct debits
•  The account you open must be an individual one, not a joint one 
•  You must start the switch by 30 November and complete it within 30 days 
• You must not have any other Barclays accounts, or have ever held one. If you are switching to the Premier Account, you need to pay in an annual income of at least £75,000 or have at least £100,000 in savings or investments with Barclays. 

The switch bonus will be paid within 28 days as long as you meet the criteria.

How can I earn 5.12% on my cash savings? 

The 5.12% AER savings rate is for an easy access account and you only get it via the Blue Rewards Scheme, available to current account holders.

But, the rate is only available on balances of up to £5,000 - anything more and you'll simply earn 1.15%.

How does the rate compare to other savings? 

The rate is not far behind the next best rate for easy access, which is via Natwest owned Ulster Bank,  paying 5.2% interest.

You can also earn up to 15% cashback with Barclays Blue Rewards with some retailers when you link your debit card.

HSBC's £205 bonus mentioned in this article is now off the market. See our guide best offers for switching banks for the latest cash bonus offers.

HSBC has unveiled a bonus worth up to £205 for new customers who open a current account and take out its global travel money product at the same time. 

While you normally have to use the bank’s switching service, with this offer, you can open a current account without switching current accounts and get the £125. You can grab another £80 if you make a minimum of 5 payments using your Global Money multi-currency debit card by 21 April 2024, which can also be used in the UK.

As well as the two bonuses, the banking giant is offering a prize draw to new customers who open both an Advance current account and a Global Money Account. 

The deal follows recent HSBC’s 5.7% one-year savings bond, which was a time-limited offer. It was withdrawn on 18 October.

We explain how the new bonus works, who is eligible – and when it finishes.

How can I get the £205 bonus?

• New customers need to open an HSBC Advance Account and deposit £1,500 within the first 60 days. 
• You also need to make at least five debit card payments and open an HSBC Global Money Account via the app – again within the first 60 days.
• To be eligible for the Advance Account – which is a fee-free current account – you'll need to be 18 or over and qualify for an optional arranged overdraft of at least £1,000.
• To qualify for either bonus, you can’t have held or opened an HSBC or a First Direct current account since 1 October 2018.

If you meet the above criteria, you’ll receive the £125 bonus.

When will I receive the bonus?

The £125 bonus will be paid into your HSBC Global Money Account 20 days after you qualify for it. The £80 incentive will be paid into the same account next year, between 1 May and 8 May 2024. 

The prize draw will take place on 29 May 2024. 

What is the HSBC Global Money Account?

This is a new international multi-currency mobile account that makes it easy to manage, convert and transfer your money for spending and payments in different countries. 

Customers can send money fee-free in more than 50 currencies to 200 countries using the app. Youcan also apply for a free Global Money debit card to access competitive exchange rates across more than 200 countries and regions.

The contactless debit card can be added to your digital wallet. You can also use the Global Money Account to withdraw cash both inside or outside the UK with no HSBC fees.

To apply for the account, you must have an HSBC current account.

When will I receive the bonus?

• The £125 bonus will be paid into your HSBC Global Money Account 20 days after you qualify for it
• The £80 incentive will be paid into the same account next year, between 1 May and 8 May 2024 

Packaged bank accounts are current accounts that charge a monthly fee in exchange for perks such as insurance benefits, car breakdown cover, cashback, higher savings rates, and monthly freebies.

Similar to a current account, you can receive or send money, make payments and pay your bills. The difference here is that you’ll be charged between £10 and £45 a month, depending on the type of account you choose, so it’s worth shopping around for the deal that best matches your needs.

The best packaged bank accounts

We’ve rounded up some of the top packaged bank accounts on the market right now.

We take a further look at the accounts below.

What to consider before opening a packaged bank account

Before opening a packaged bank account, make sure you consider all the elements to ensure the perks outweigh the costs.

• Take a close look at any insurance policies being offered. If travel insurance is included, make sure that you’re eligible, if your travel insurance covers any activities you intend on doing, and that the policy covers countries you plan on visiting.
• If you have any pre-existing medical conditions, make sure you tell the bank when you open your account. This could hamper your chances of being accepted for the account, but it’s a better outcome than not disclosing a condition, only for something to happen down the line and find out you are not covered. We look at how to get travel insurance for over 70s in a separate guide.

Should I get a packaged bank account?

A packaged bank account might be a good option for you if:

You will use the perks: if an account comes with travel insurance, do you go abroad enough to make it worthwhile?

You don’t already have the benefits: Make sure you don’t already have the insurance coverage elsewhere. For example, have you got breakdown cover included in your car finance package or car insurance?

You will actually save money: if you were to pay for the service separately, it could work out cheaper than the account fees. Double-check before you open an account.

The account suits your needs: Don’t forget to check that the bank account is suitable too. Does it have the overdraft you need? If you need a branch, is there one local to you?

Are packaged bank accounts good value?

Working out if a packaged bank account offers value for money is straightforward: take the monthly charge and multiply it by 12 to get the annual cost. Then shop around to see what the benefits would cost you separately.

For instance, a Santander Edge Explorer account may be worth getting with the bank switching bonus, but it may not end up being worth the cost later. Make sure you repeat those processes each year rather than sticking with a packaged account for years that may no longer offer you good value.

The chief executive of high-street bank Natwest Alison Rose has stepped down after revealing she was the source behind an untrue story about former UKIP leader Nigel Farage.

She admitted to incorrectly telling the BBC that Farage’s account at exclusive lender and NatWest subsidiary Coutts had been closed purely due to commercial reasons - a story the broadcaster was forced to amend and has apologised for.

Internal documents obtained by Farage show his political views were part of the equation when the bank weighed up on whether to retain him as a customer, contrary to what Dame Rose said.

In a statement, NatWest Group chairman, Sir Howard Davies said: “The board and Alison Rose have agreed, by mutual consent, that she will step down as CEO of the NatWest Group. It is a sad moment.”

In a separate statement, Rose said: “I remain immensely proud of the progress the bank has made in supporting people, families and business across the UK, and building the foundations for sustainable growth.”

Rose, who had served as chief executive of the group for four years, previously apologised to Farage after it emerged the bank had described the seven-time MP candidate as “xenophobic and racist"

In the letter, she said: “freedom of expression and access to banking are fundamental to our society and it is absolutely not our policy to exit a customer on the basis of legally held political and personal views".

Now, the government has waded in promising to protect “freedom of expression” to alleviate fears that banks are terminating accounts because they disagree with someone’s political beliefs.

New rules to boost transparency 

Under the new requirements, banks will be forced to increase the notice period to 90 days – giving customers more time to challenge a decision through the Financial Ombudsman Service, or find a replacement bank.

Banks will also be required to spell out why they are terminating a bank account – boosting transparency for customers and aiding their efforts to overturn decisions.

The government said the changes can only be made due to new powers in the Financial Services and Markets Act 2023 - policy introduced following Brexit.

Economic secretary to the Treasury, Andrew Griffith, said: “Freedom of speech is a cornerstone of our democracy, and it must be respected by all institutions.

“Banks occupy a privileged place in society, and it is right that we fairly balance the rights of banks to act in their commercial interest, with the right for everyone to express themselves freely.

“These changes will boost the rights of customers - providing real transparency, time to appeal and making it a much fairer playing field.”

What is debanking?

While the dispute between Farage and Coutts has caught the attention of the public, bubbling beneath the surface is an important story on the extent to which banks can refuse business with people or businesses that may bring reputational risks.

The proposed changes follow a call for evidence launched in January.

Dubbed “de-banking”, the phenomenon has risen to the fore in recent years. In 2021, PayPal blocked a fundraising site after it raised money for people who attended the January 6 attack on the Capitol in Washington D.C, sparking outrage.

The UK government said changes were needed to ensure customers knew why any action is being taken against them while providing banks the right to manage their commercial risk.

FCA chair, Ashley Alder, said: “For banks as well as other commercial enterprises, it’s fundamentally up to them to choose who they do business with.”

The new regulations will be powered by the Financial Services and Markets Act 2023, as part of the Government’s programme in building a Smarter Regulatory Framework for UK financial services.

This runs alongside separate plans to clarify in legislation the requirements for Politically Exposed Persons (PEPs), and a review into whether these are being applied proportionately by financial institutions.  

These steps were commissioned by Parliament last month as part of the Financial Services and Markets Act 2023, and the FCA will set out how they intend to conduct the review by the end of September.

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Santander is increasing its savings rates following a comprehensive review of its products in line with Consumer Duty principles, which comes into effect at the end of July.

Rates will rise by between 0.15% and 0.5%, and the lowest interest rate on an on-sale savings account will now be 2.5%.

Some savings products will be pulled from sale while others will be renamed, in an effort to simplify and streamline the product range. 

Customers with a Santander Easy Access Saver or Easy Access ISA will be able to access their accounts via all channels: online, in branch and telephone banking. Previously, these products could only be managed online.  

The overhaul has been done to meet the Consumer Duty rules, a new regime from the Financial Conduct Authority aimed at putting customers’ needs first. It will be introduced on 31 July. There could be more changes to come from banks, insurers and other financial providers as firms strive to prove that they are delivering good outcomes and fair value for consumers.

Santander boosts interest rates

 The Santander changes all come into effect today. Its full range of savings products are now: 

• Regular Saver (5% AER/gross for 12 months). This was previously called Regular eSaver.
• Fixed-rate ISA (4.15%-4.25% AER depending on term length) 
• Santander Edge Saver (4% AER/gross for 12 months) 
• Easy Access ISA (3.2% AER/tax-free variable for 12 months). This was previously the eISA.
• Easy Access Saver (2.5% AER/gross for 12 months). This was previously the eSaver paying 2%.

“We have a range of savings products to fit our customers’ different needs and we will continue to work with customers to ensure they are aware of our full range of accounts and can pick the right product for their needs,” said Andrea Melville, director of current accounts, savings and business banking at Santander.

Meanwhile, the interest rate on its Everyday Saver and Easy ISA will rise by 0.15%, from 0.85% to 1% for existing customers. From today, these products will no longer be available to new applicants; 

A range of off-sale savings accounts will also have their interest rates hiked from 0.85% to 1%. 

Anna Bowes, co-founder of the savings website Savings Champion, said she welcomed Santander increasing the rate on its on-sale easy-access account and making previously online-only accounts available to branch and telephone banking customers too. However, she added: “Existing customers also need to check what they are being offered, for example, the Everyday Saver, which was the key easy-access account available via branch as well as online until today, has been removed from sale and the rate has only increased from 0.85% to 1%. S, the devil is in the detail. You may be able to improve the interest you are earning, but you’ll need to be proactive.”

How to check what rate you are on with Santander

Santander UK has about 14 million active customers. It says it contacts customers rolling off their fixed-term products to let them know of the alternative savings products available. In addition, customers receive annual statements showing their interest rates, which are also visible when accessing online or mobile banking.  

Alongside preparing for the Consumer Duty rules, banks have also been told to improve savings rates. The Bank of England has been steadily increasing interest rates - base rate is currently 5% - and while mortgage rates have soared, some banks have been accused of being slow to pass the rate rises onto savers, and essentially, of profiteering. 

The average easy-access savings rate is currently 2.61%, while the average one-year fixed savings rate is 5.1%, according to the comparison site Moneyfacts.

Looking for the top savings rates? Check out our guides to the best easy-access accounts, fixed-rate accounts, cash ISAs and regular saver products. 

If you’re unhappy with your current account, switching banks by taking advantage of the best bank switching offers can be a good way to move your money and get ‘free’ cash in the process.

More than a million bank account switches took place last year, according to the Current Account Switch Service (CASS). Nationwide recorded the largest net gain, attracting 41,450 customers. Digital bank Monzo ranked second with 9,934 switches, followed by NatWest with 8,731. We delve into the most and least popular banks among customers in a separate piece.

Kalpana Fitzpatrick, editor of MoneyWeek.com, says: “Bank switching deals are a great incentive for anyone looking to move banks. But, before you switch, make sure the bank you are moving to offers what you need – don’t switch just because there is a cash bonus on offer.”

There are currently six bank switching offers on the market, with incentives of up to £250 in cash, as much as £750 in cashback, or a signature experience worth £600.

We round up the deals available now and explain how to qualify for the bonus.

The best bank switching offers

NatWest – get up to £250

NatWest is offering £250 to new and existing customers who didn’t have a NatWest current or savings account as of 10 March 2026. To qualify for the switching bonus, you must:

• Open a NatWest Premier account and complete a switch using CASS
• Pay in £5,000 within 60 days (either as a single deposit or in multiple instalments)
• Log in to the NatWest mobile app

The £250 will be credited automatically within 30 days of meeting the requirements.

Customers can also earn up to £9 a month through NatWest’s rewards programme. This includes setting up two Direct Debits, 1% cashback at select retailers, and £1 per month for logging in to the app. Once the balance reaches £5, you can redeem the rewards for cash or vouchers.

Get up to £750 in savings interest

Alongside the switching offer, NatWest is offering a savings bonus worth up to £750 to customers who deposit £100,000 into its Flexible Saver account. This means high earners could get up to £1,000 from NatWest.

Here’s how to qualify:

• Deposit £100,000 into the account
• Maintain the balance for at least 30 consecutive days.

You don’t need to wait to receive the £250 switching bonus before opening the Flexible Saver.

In order to be eligible for a NatWest Premier account, you must meet at least one of these criteria:

• Have an income of at least £100,000 or £120,000 in joint income
• At least £100,000 held in savings or investments with NatWest
• A NatWest mortgage of at least £500,000

However, it’s worth noting that NatWest Group is closing 18 more bank branches by 2027, so if your local branch is shutting down and you prefer in-person banking, it may not be suitable for you to switch.

HSBC – get £220

HSBC’s switching offer is offering new customers £220 for switching to an HSBC UK bank account. Here’s how to qualify:

• Complete a full switch with CASS
• Transfer two direct debits
• Deposit at least £2,000
• Spend £500 on your HSBC debit card

Once you meet the requirements, you will receive the bonus within 60 days.

This offer isn’t available for existing HSBC or First Direct customers, or those who have held an account with either of the banks since January 2023. You will need to apply for the switch on the HSBC app.

Barclays – get £200

Barclays is offering £200 to new customers who open a current account with the bank. To qualify, you need to follow these steps:

• Open a Barclays Bank Account through the Barclays app.
• Complete a full switch, including at least two direct debits.
• Deposit a minimum of £2,000 within 30 days of opening the account.

Once you’ve followed these steps, you’ll receive the £200 in your new account within 28 working days. The switching offer ends on 27 August 2026.

Get a premier experience worth up to £600

Barclays is offering an experience-led reward worth up to £600 for customers who switch to its Premier account. You will need to follow these steps to qualify:

• Open a Premier account using the Barclays app
• Complete a full switch, including moving two direct debits
• Pay in at least £4,000 within 30 days

After you open the account, you can choose from four types of high-end experiences:

• Dining: Restaurant experiences at select UK venues, including the Gordon Ramsay Restaurants. Specially curated menus for Barclays customers, wine pairings, welcome drinks and £50 Uber credit.
• Stay: Luxury UK hotel stays with select partners such as De Vere, Dakota Hotels and Harbour Hotels, including champagne on arrival, a three-course meal, spa access and complimentary breakfast.
• Live events: Tickets to stadium concerts at Wembley, sporting fixtures like England cricket at Headingley and exclusive matchday perks.
• Family: Annual passes to Merlin Entertainments’ attractions, tickets, food and drinks at Cineworld and Picturehouse Cinemas.

Moreover, with a Barclays Premier account, you can get free Apple TV, cashback on spending, improved savings rates, rewards like free drinks from GAIL’s, and 5% cashback at Tesco fuel.

However, in order to qualify for the Premier account, you will need:

• An annual income of £75,000
• At least £100,000 in savings or investments with Barclays

You will not be eligible for the switching offer if you opened an account with Barclays before 9 June 2026.

First Direct – get up to £200

First Direct’s switching bonus is offering new customers £200 if they open an account before 15 July. To qualify for the bonus, you will have to complete the following steps within 45 days:

• Deposit a minimum of £1,000 (in single or multiple deposits) in your account.
• Switch at least two direct debits or standing orders into your First Direct account.
• Register and log on to digital banking.
• Use your debit card at least five times.

Once all the steps are completed successfully, the £200 bonus will be paid to your account on the 20th of the following month.

You are not eligible if you've held an HSBC current account on or after 1 January 2018.

The account gives you access to its 7% regular saver. Plus, there are no fees when spending abroad, and the current account comes with a £250 interest-free overdraft, although this depends on your credit history.

Santander – get £180

Santander’s £180 switching deal is for both new and existing customers. To qualify, you must do the following:

• Complete a full switch using the CASS within 60 days of opening your account
• Pay £1,500 into the account either as a one-off payment or in instalments.
• Set up two direct debits in the eligible account.

Eligible accounts include Santander Everyday, Edge (£3 monthly fee), Edge Up (£5 monthly fee) and Edge Explorer (£17 monthly fee).

The bonus will be paid within 90 days of initiating the switch.

Existing customers can get the bonus by transferring £1,500 from an account held with a different provider to their new Santander account using the bank’s switch service. Plus, they will need to set up two direct debits.

Santander is closing 44 bank branches this year, so if your local branch is closing and you prefer in-person banking, it may not be suitable for you to switch to Santander.

Nationwide – get £175

Nationwide is offering a £175 bonus to new customers. You can get the cash by switching a non-Nationwide current account into a new or existing FlexPlus, FlexDirect or FlexAccount.

To qualify, you must complete the following:

• Use the CASS to complete a full switch within 28 days.
• Pay in at least £1,000 and make at least one debit card transaction within 31 days.
• Switch over a minimum of two Direct Debits.

You’ll receive the bonus within ten days of meeting all the requirements.

Alongside the new switching offer, Nationwide has also launched a 5% Member Exclusive Bond and has started paying its £100 Fairer Share bonus to over four million members for the fourth consecutive year.

How to switch bank accounts

The Current Account Switch Service makes it quick and painless to switch banks, as the banks are required to do the legwork and complete the switch within seven working days. All you do is open a new current account and request a switch via CASS. The service will then close your old account and move all your money, direct debits and standing orders to your new account within seven days.

Plus, for three years, any money that is paid into your old bank account or tries to leave that account will automatically be put into your new account. Still, it is important to remember that while these offers might look attractive, you should only switch to an account that suits your needs, as some accounts may also charge a monthly fee.

You should always check the terms and conditions to make sure you qualify for the bonus before you start the switch process. If you're applying for any credit in the next six months, such as a mortgage, it's also worth being aware that switching bank accounts could affect your credit score.

The clock is ticking if you want to take advantage of unlimited cashback from a Chase Bank current account.

While many banks have been competing for our business by launching cash switching bonuses, Chase has taken a different route by rewarding account holders when they spend.

The Chase bank account pays 1% cashback on all regular spending on your debit card each month for your first 12 months with the account, and currently that cashback is uncapped. That means that you will get 1% back on all of that normal spending, no matter how much that 1% comes to.

But, things are changing from 9 May. All applications for the account from that date will still benefit from the cashback on offer, but there will be a cap in place; the caps means you won’t be able to pocket more than £15 a month in cashback. That’s still an excellent proposition, but if you are a big spender on your debit card then you’ll potentially be missing out on further rewards if you don’t apply for the Chase current account by 8 May.

The Chase account also offers a nice alternative to cashback credit cards, should you want to earn cashback on your spending without wanting to take out a new credit card in order to do so.

Can I earn cashback on all of my spending with the Chase current account?

The emphasis on the Chase cashback offer is on everyday spending. You can earn cashback on almost everything - from your daily coffee, train tickets to your weekly groceries shopping.

As a result, you won’t earn cashback on big, out of the ordinary purchases that you make with your debit card.

Exclusions include spending on things like:

• College and university fees
• Estate agent fees
• Buying from art galleries or antique shops
• Cash withdrawals
• Gambling transactions
• Cryptocurrencies
• Tax payments

Earning interest with the Chase current account

The cashback isn’t the only selling point to the Chase current account; you can also earn interest on in-credit balances.

Chase recently introduced an interest rate of 1% for current account balances. What’s more, this rate is paid on the entirety of your balance, unlike some accounts which will only pay interest on the first £2,500 or so in your bank account.

There are no minimum monthly deposit or direct debit requirements and no fees, either.

The bank also offers a savings account, linked to its current account, which pays 3.1% interest, as well as 5% interest on its round-up account.

What are other digital banks offering?

Digital banks, or app-based banks, have grown in popularity over the past few years.

Though these don’t have physical branches, many users are switching to them for the convenience they provide.

Monzo pays 3.20% on its Instant Access Savings Pots, and you don’t need a minimum deposit. Additionally you can withdraw your money at any time, but it will take a working day for it to hit your account.

Starling Bank allows you to save between £2,000 to £1,000,000 into a one-year fixed saver with a rate of 3.25%. It’s worth shopping around for the best one-year fixed savings accounts, as some of them are offering rates of over 4.50%.

And while Atom Bank does not operate a current account, its one year fixed saver pays a rate of 4.55%.

No digital banks pay cashback on debit card spending, though some regular high street banks do.

For example, Santander has the Edge account which pays 1% cashback on debit card spending at supermarkets and on travel. It also pays 1% cashback on certain household bills paid by direct debit.

Digital bank Chase has announced a new cashback offer for its existing customers.

The bank currently offers 1% cashback on spending for all new customers for 12 months, but from 1 April, existing customers can qualify for another 12 months of 1% cashback.

That’s up to 24 months of cashback at 1% available. So, if you’re thinking of switching bank accounts, the bank could be a contender.

Customers can earn cashback on supermarket shopping, travel, meals, entertainment, homeware and flights. Spending abroad also qualifies - the bank does not charge any fees for using your card abroad.

To qualify for the offer, customers must pay at least £500 a month into their Chase current account each month.

Other accounts offering cashback

Chase is not the only bank offering cashback on purchases.

Nationwide recently announced it’s giving 5% cashback on groceries, capped at £10 a month. But the deal will only run from 9 February to 30 April, or until £100m has been paid back to consumers.

For £3 a month, Santander’s Santander Edge account also offers up to £20 cashback a month, including 1% cashback on up to £10 a month on grocery shopping and 1% cashback on household bills.

Santander’s 123 account also pays 3% cashback on household bills, capped at £15 a month.

Chase introduces interest on current account balances

As well as its cashback offer, from 1 April customers will be able to earn 1% AER on their current account balances with Chase.

There is no minimum deposit or direct debit requirements, and it will apply to all Chase current accounts. Interest will be paid on the first day of each month and accrue daily.

Chase's current account holders also have access to its savings account, which pays 3% AER. But given that there are savings accounts offering rates of up to 7%, it’s worth shopping around for the best savings account.

Additionally, the bank provides 5% AER on its round-up account. For customers who opt-in to this offer, each transaction is rounded up to the nearest pound with the round-up deposited in a separate savings account earning 5% interest.

Chase is an app-based bank so if you prefer a physical branch, it might not be the bank for you. Customers can get support in-app, via live chat or by phone.

Nationwide customers can earn 5% cashback on their supermarket spending when shopping both online and in-store.

The deal, capped at £10 a month, is available to both new and existing customers who have a current account with Nationwide.

With food inflation hitting a record record 16.7% in January, this is certainly an attractive offer from Nationwide as households look to keep the cost of groceries low. Average households are currently paying around £788 a year more due to inflation, according to analytics group Kantar.

The deal runs from 9 February to 30 April - or until £100m has been paid back to consumers.

The deal will also be available to new members, but note it does end 30 April so there could be a better offer from a different provider if you are thinking about switching bank accounts.

For example, Santander’s Santander Edge account offers up to £20 cashback a month, including 1% cashback on up to £10 a month on essential grocery shopping and 1% cashback on household bills paid via direct debit. However the account does have a £3 monthly fee.

Santander’s 123 account also pays up to 3% on household bills, offering up to £15 cashback a month. Digital bank Chase also offers 1% cashback on all spending for the first 12 months.

Here’s what you need to know about Nationwide’s cashback offer.

Who is eligible for Nationwide’s 5% cashback offer?

If you have a FlexPlus, FlexDirect, FlexAccount, FlexStudent, FlexGraduate or FlexBasic account, then you can benefit from the cashback deal. It is not available on the FlexOne youth account.

The cashback is paid into your account within six weeks of the end of the calendar month when you reach a minimum £3.

If you’re signed up to text alerts, you will receive one once the payment has been made.

You can earn cashback when shopping at most major supermarkets, including Aldi, Asda, Lidl, Sainsbury’s, Tesco, Morrisons and Waitrose. Smaller retailers are also included - see Nationwide’s website for a full list of eligible supermarkets and convenience stores.

You will not receive cashback when shopping at petrol stations, including supermarket owned petrol stations, service stations, pharmacies, or specialist stores such as bakeries and butchers.

New members who open a FlexPlus, FlexDirect, or FlexAccount current account between the deal’s availability period will also be eligible.

More than 29,000 cases of remote banking fraud were reported to UK Finance in the first half of 2022, with scammers gaining access to bank accounts via internet, telephone or mobile banking and making an unauthorised transfer of money from the account.

It’s a boom time for app-based banking, as more and more local bank branches close. And apps should be the more secure option, unlike websites, fewer viruses and malware are created to attack apps.

And if you’re worried about phone theft, most mobile banking apps don't store your bank details on your phone but instead access them from a secure data centre, meaning your mobile itself should never hold your personal bank information.

But, the latest research from the consumer group Which?, found basic security flaws on some of the biggest banks’ apps are putting us at increased risk of falling victim to fraud.

How safe is your banking app?

The consumer group tested the customer-facing security systems of 13 current account providers from September to November 2022, with help from independent security experts at Red Maple Technologies.

Scoring the banks in four key categories:

1. login
2. navigation and logout
3. account management
4. encryption

Banks were marked down for issues such as: not adequately blocking weak passwords, sending one-time passcodes or other sensitive information via text messages - the least secure approach - and failing to log customers out after five minutes of inactivity.

Points were also lost for allowing simultaneous access to accounts from multiple web browsers or IP addresses, without flagging it as a potential cyber-attack, and for sending customers notifications that include a phone number or web link.

The latter can be a gift to scammers who often replicate texts and emails to trick people into calling them or entering their details on a fake website.

Sam Richardson, Which? money deputy editor, said: "Our latest tests found several banks were missing important online and app protections, which could leave consumers worryingly exposed to unscrupulous fraudsters.

Bad news for TSB and Virgin customers

The lowest-scoring app in the tests belongs to Virgin Money.

Red Maple Technologies found six outdated Virgin Money web applications which had potential vulnerabilities. The bank noted minor vulnerabilities on three and said these will be corrected.

Which? also claims Virgin Money didn’t adequately block insecure passwords and remove phone numbers from notifications. Worryingly, there were no security checks to pay someone new, change an email address or edit the details of a payee.

The TSB app scored second lowest and was criticised for still asking basic security questions such as ‘name your favourite food’ to recover login details. It also failed to block insecure passwords and only requires a minimum of six characters - while longer passwords are more secure.

TSB also lost points for using SMS-based security, not sending alerts when sensitive account changes were made and including phone numbers in new-payee notifications. TSB said it is reviewing alerts and password complexity as part of its digital strategy. The bank told Which? it has now removed phone numbers from all SMS alerts, except for one which is due to be removed in February.

You can find the full list of the most and least secure banking apps on the Which? Website.

Banking app security tips from the experts

Concerned? It’s understandable if you are. But it’s important to remember banking apps are still one of the more secure ways you can access your banking information. And there are several straightforward steps you can take to ensure your app is as secure as possible.

Amir Tarighat, digital privacy expert and CEO of cyber-security company Agency recommends fives steps you can take to keep your banking app secure:

1. Turn on 2FA. Easy access to your accounts through mobile banking apps can take the headache of managing your finances. But with easy access comes increased risk. One of the best ways to secure your accounts is to enable two-factor or multi-factor authentication. Even if your device is lost, stolen, or otherwise compromised, turning on this additional security measure ensures that no one else will be able to log into your accounts.
2. Update your operating system. Make sure the operating systems and individual banking apps on your mobile devices are up to date. Most software updates are meant to address security vulnerabilities that leave the door open to hackers. If you're running on an out-of-date system, cybercriminals can access your devices to plant malware and steal your personal data, so you should routinely check for available updates.
3. Avoid WiFi hotspots. If your WiFi network isn’t secure, hackers can hijack your session and log in as you, leaving your accounts up for grabs. Using banking apps in hotels, bars, airports, or anywhere else with public WiFi could leave you vulnerable to cyberattacks, so wait until you’re connected to a network you trust to access your bank account.
4. Check your exposure. If you’re worried that your banking app has already been exposed, you can check which of your accounts might be compromised by using Agency’s free Dark Web Report.
5. Brush up on the most common scams. Scammers are persistent, but they’re not terribly original. Research the most common scams that appear every year (misspelt URLs to fake sites, fake confirmation or delivery emails, gift card scams, and charity scams, just to name a few.) Recognizing the hallmarks of these scams will help you protect your financial information when banking online.

Biometric security checks, like fingerprints or face scans, can also turn the tables on any would-be hacker or scammer. Gus Tomlinson, Chief Product Officer at GBG, the digital identity expert says also recommends setting up biometric security checks

“Banking apps are designed to be secure but that doesn't mean that human error or fraudsters aren’t savvy enough to get through them.

“The biggest vulnerability comes from the user’s device, which is why implementing things like biometric security checks is key, and not just for banking but all uses of money.

“Another tip is to always have your phone linked to other devices. This means the moment you have lost it, or it has been stolen, it can be disabled. If this happens, make sure you inform your network provider and your bank so both can suspend your mobile banking immediately. “

A few weeks ago, an Irish friend of mine was contacted by the Irish Postal service. A package had arrived for her from abroad, but there were a couple of euros and change of duties to be paid. This had happened to her before - she buys a lot of stuff on the internet, clothes especially - and she duly got out her debit card and paid up.

A week or so later, she was sitting in a meeting, when she started getting updates from Revolut notifying her that money was being sent from her account to Binance, the crypto exchange.

She doesn’t have an account with Binance.

She contacted Revolut and then found money had also been sent to the crypto exchanges Kraken and Coinbase, and then, of all places, to Deliveroo. The perpetrator was ordering dinner.

She thought she had frozen her account, but it seems Revolut had already done this ten minutes earlier - their fraud detection system had been triggered and the customer alerted.

The Revolut rep advised her that the transfers had not been completed yet, that they would be halted and that in a few days the money would be returned. My friend calmed down.

The following day, however, she saw that the transfers had got through. She got in touch with Revolut again. Only this time the rep told her that yesterday’s rep had given her the wrong advice. Those payments could not have been halted and the money would not be returned.

After several days’ back and forth, Revolut then confirmed that the money was gone and that they would not be refunding it to her. If she had any complaints she should take it up with the police.

In total, she had around 7,000 euros stolen from her account. Someone had stolen her debit card details, most likely that person supposedly from the Irish postal service, and that is how the fraud was perpetrated.

She reported it to the police, spending several fruitless hours on several different occasions at the station, where notes were taken on bits of paper (not digitally) and she was given titbits of advice such as, “ah, well, you don’t know what’s going on with them foreign banks.”

There was one detective, apparently, who was helpful, but, apart from that, fruitless. They then told her to speak to the financial ombudsman, which she did, to be told that it was too close to Christmas and she should try again in the new year. She would eventually be given the run around by the ombudsman as well.

She asked another of her banks what they did in this situation, and they suggested she try and find a solicitor. But this, it seems, was hard too. Most specialise in defending organisations against fraud, but few act for individuals, she says, and certainly not in her price bracket.

She then started getting repeated calls from another company - a Florida number, but based in Israel - asking her for €1,000 upfront to recover the money, which they say there is a “good chance” of doing.

Eventually, she got in touch with me to see if I could help. The whole story seemed extraordinary. I read the conversations she had had with the Revolut representative telling her not to worry. I couldn’t believe Revolut then saying she had no protection, when she was clearly the victim of a debit card fraud. Particularly as Revolut was notified while the fraud was taking place. Surely, even with Revolut’s non-banking status, it has to abide with EU customer protection laws, doesn’t it?

I’ve had money stolen from my account, when I lost my debit card. Whoever found it went on a shopping spree round the supermarkets of South London. I had to fight to get the money back, and go through endless phone calls and form filling - and even then HSBC “forgot” to re-instate the stolen funds - but I did eventually get the money.

I’ve never had such problems with credit cards, which is why I prefer them to debit cards. But even with HSBC’s delaying tactics, I never got a flat refusal in the way that my friend was given by Revolut.

The ability to hold numerous different currencies in Revolut, the ease with which you can send and receive money internationally and indeed send to crypto exchanges, where many traditional banks will block transfers, make it a tempting option. But the convenience it offers seems to come at a cost and that cost is the safety of your money.

I got in touch with Revolut here in the UK saying I was writing a story about this and I wanted to hear Revolut’s side. Revolut replied straight away. I spoke to their representative, who was extremely helpful (he doesn’t want his name mentioned here).

He recognised that I was working to a deadline, looked straight into the case and then came back to me a couple of days later with a resolution. “The experience of [unnamed] fell well below our high customer support standards and we’re sorry for the distress this caused her,” he said. “We have reimbursed her stolen funds in full as a gesture of goodwill.”

I’m not sure my friend’s experience would have been the same had she not had a friend who is a financial journalist, but I have to commend Revolut and this employee in particular for the way he acted as soon as I came banging on the door.

He also had this to say: “Criminals use increasingly sophisticated techniques to steal your details and your money. If you receive an SMS message from any person or business, be on guard, particularly if the message asks for your details or includes a link or number. Do not share authorisation codes or passwords with anyone, ever, even if they claim to be from Revolut.” See our article on 7 common pension scams to know what else to look out for when dealing with scammers.

And, there, I suppose is the moral of this tale. Debit and credit card fraud is rampant, and its perpetrators are a lot more wised up than most ordinary consumers - than you or me, in other words.

I’m not a writer who specialises in this kind of consumer finance, but I would also add that my experience is that you seem to get more protection from credit cards than debit cards, so use them. Use 2 factor authentication wherever possible. Have your payment notifications switched on, so that every time there is a transaction you get notified. That way less will slip by you. Cyber crime is everywhere.

Revolut also added: “If you think your card details may have been compromised, freeze your Revolut cards immediately in the app by tapping 'freeze' on each of your cards and report the fraud to Revolut immediately by contacting a customer support agent via the in-app chat.” That’s exactly what my Irish friend did though!

My eldest daughter is about to go on a backpacking trip. She has a Revolut account - she likes Revolut - and she’ll be taking a Revolut debit card with her. But she will keep her core funds in another account, for which she won’t have a debit card with her, thereby leaving it less vulnerable. She’ll only transfer money to Revolut when she needs it. It may seem long-winded, but it adds a layer of protection.

If you're looking for the best savings rates, you can earn up to 5% with the top easy-access account, 4.85% with a one-year fixed bond, 8% with a top regular saver or 4.72% with a cash ISA.

While savings rates are lower than they were a few years ago, you can still find inflation-beating deals on the market and make your money work hard for you.

You shouldn’t judge a savings account solely by its top rate, but rather check whether it fulfils your needs – both short-term and in the long run. This includes looking at whether there are any restrictions on withdrawals or bonus rates, which could mean the rate quickly drops when the boost comes to an end.

The Bank of England held interest rates in April, so there's a chance that the top savings deals start to tumble. In that case, if you want a competitive rate on your cash, you may need to act quickly.

Below, we look at the top rates for notice savings, easy-access savings, fixed bonds, regular savings and cash ISAs.

Note:
All the banks we mention in this article are protected by the Financial Services Compensation Scheme, meaning up to £120,000 of your savings are protected should a bank or other financial services company go out of business.

Best notice savings rates

The best easy-access savings rates

Best regular savings accounts

The best one-year fixed rates

The best two-year fixed rates

The best three-year fixed rates

The best easy access cash ISAs

The best one-year fixed rate cash ISAs

The best two-year fixed rate cash ISAs

The best three-year fixed rate cash ISAs

Types of savings accounts

There are several different types of savings accounts to choose from.

• Easy access savings accounts: These allow you to take your money out as and when you please. However, some come with restrictions on withdrawals, which can mean you can’t immediately access all of your money in the account in an emergency. For instance, you may only make same-day withdrawals if done before a particular timeframe, or you may only be permitted a limited number of withdrawals before the rate on your account drops.
• Fixed-rate savings accounts: These come with restrictions, so you can’t access your cash until the account reaches maturity; otherwise, you may face a hefty penalty. You usually earn more interest if you are willing to lock your cash away for a fixed period, but keep in mind that this also takes away flexibility should you need the cash suddenly. Here's how much you should have in emergency savings.
• Regular savings accounts: Regular savers reward customers who are ready to commit to a consistent savings habit. These are usually the top-paying savings rates in the market, but can also come with withdrawal restrictions and are usually fixed for a certain time. We look at whether easy access or regular savings accounts give you the best return in a separate piece.
• Individual savings accounts (ISAs): These are a type of ‘tax wrapper’ into which you can put cash or investments. Currently, you have a £20,000 limit on how much you can set aside into an ISA. We look at how many ISAs you can have in a separate guide.

If you aren’t saving in this type of account, you could be forced to pay tax on interest. We look at ways to shelter your money from the savings tax trap.

If you’re looking to switch your current account, take a look at our guide to the best bank switching offers, where you can earn as much as £250.

What is the maximum amount protected by the Financial Services Compensation Scheme (FSCS) in the UK?

The Financial Services Compensation Scheme (FSCS) protects up to £120,000 of your savings and investments if a financial institution goes bust.

Previously, the limit was £85,000 for sole accounts and £170,000 for joint accounts, but it was raised to £120,000 and £240,000 respectively in December 2025.

All accounts listed above are eligible for FSCS protection. You can check if your account is protected online on the FSCS website.

What is the current Bank of England base rate?

The current Bank of England base rate is 3.75%. Interest rates were held at 3.75% in June. The next decision from the Bank of England will be announced on 30 July 2026.

The central bank’s Monetary Policy Committee meets eight times a year to set rates.

This article is updated regularly to bring you the latest on the best savings rates. Sign up for our newsletter to stay up-to-date on all the latest deals for cash savings.