The best bank switching offers

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last updated 3 weeks ago

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If you’re not happy with your current account, a good way to move your money – and get free cash in the process – is by seeking out the best bank switching offers.

The Current Account Switch Service (CASS) facilitated a total of 1.2 million switches in 2024, including 309,290 between October and December.

John Dentry, product owner at Pay.UK, owner and operator of the Current Account Switch Service, said: “2024 was yet another busy year for the Service, and these figures are ultimately being driven by increasingly money-conscious consumers.

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"Banking institutions, whether they be neobank disruptors or traditional high street banks, continue to present diverse, innovative and increasingly generous offers to win over hot-footed switchers."

First Direct – get £175

First Direct’s switching bonus offers new customers £175 free cash to those who switch to its 1st account.

To qualify for the bonus, you will have to complete the following steps within 45 days of opening your First Direct 1st Account.

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 1st Account.
Register and log on to digital banking.
Use your new 1st account debit card at least 5+ times.
Be a new customer to First Direct, who has not previously held a First Direct product, or has opened an HSBC current account on or after 1 January 2018.

Once all the steps are completed successfully, the £175 bonus will be paid to your account on the 20th of the following month.

The account gives you access to its 7% regular saver, which features on our best regular savings guide. Plus, there are no fees when spending abroad with First Direct, and the current account comes with a £250 interest-free overdraft, although this depends on your credit history.

Lloyds Bank – get £175

Customers will have to move to a new Club Lloyds current account and meet certain criteria to get it. To be eligible, you must:

Switch your bank account to a new Club Lloyds current account before 1 April.
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.
Make the switch by 1 April 2025.

Existing customers can qualify for the £175 free cash if 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.

You will not be eligible for the switch if you have already used a switching offer since April 2020. It's worth noting the deal ends on 1 April 2025.

If you’re planning to switch to one of the Club Lloyds accounts, you also get access to the 6.25% regular saver. Plus, Club Lloyds customers can also choose from a 12-month Disney Plus subscription, Vue or Odeon cinema tickets, a magazine subscription or a digital Coffee Club and Gourmet Society membership.

NatWest – get £150 plus rewards

NatWest is back with its bank switching offer. The bank is offering £150 to new and existing customers when they move to a Reward Account (£2 monthly fee). You could also benefit from a further £60 in rewards each year through the account.

To qualify, customers will need to:

Switch their bank account to a NatWest Rewards account using the Current Account Switch Service.
Pay in £1,250 into the new account
Log into the mobile app within 60 days of switching

Once you’ve met these conditions, the £150 will be paid into your account within 30 days. All your direct debits and standing orders will be automatically transferred within seven days of switching.

You aren’t eligible if you’ve already used a switching deal from the NatWest Group, or if you switch from Royal Bank of Scotland or Ulster Bank.

Customers can also get an additional £4 each month or £60 each year in rewards if you sign up for the account. This is if you have two direct debits of over £2. You get another £1 by logging into the mobile app.

You also get access to a Digital Regular Saver that pays 6.17% interest on savings of up to £150 per month. On top of that, you can avail a Travel Reward Credit Card that gives 1% back in rewards on travel spend, and a free Rooster Card subscription (usually £1.99 per month or £19.99 per year).

Will bank switching offers make a comeback?

Several current account providers have ditched their switcher offers over the past few months. Free cash deals from Nationwide, Santander and TSB have disappeared.

But, while offers have "fizzled out" for the time being, according to Rachel Springall - finance expert at Moneyfacts - more could be on the way. She says: "Consumers will see these types of incentives come and go throughout the year when banks decide to compete for new business.

"This should not deter customers from ditching and switching to an account that works harder for them, as there are still some decent packages available to suit different circumstances. It’s vital that customers choose an account based on its overall value, and not just for a free cash incentive."

How to switch bank accounts

The CASS 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.

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Jessica is a financial journalist with extensive experience in digital publishing.

She was previously Digital Finance Editor at GB News and Personal Finance Editor at Express.co.uk. She enjoys writing about savings, pensions and tax, and is passionate about promoting financial education.

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