The best offers for switching banks – get up to £175

If you’re not happy with your current account, a good way to move your money is by finding the best offers for switching banks. 

Bank switching has become very popular, with the Current Account Switch Service (CASS) facilitating 1,411,553 switches in the past year – a 10% increase compared to the year before. NatWest topped the table with the most switches made to its accounts in the first quarter of 2024. 

Many providers made a comeback last month with attractive cash incentives, but they are starting to disappear again, with one switching deal ending next week. Currently, four of the best UK banks for online banking are offering up to £175 if you switch to them, with Co-operative Bank being the most recent addition.   

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“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,” says Kalpana Fitzpatrick, editor of MoneyWeek.com. 

We round up the deals available now, and how to earn the bonus after making the switch.

The best offers for switching banks

First Direct – get £175 [ending soon]

First Direct’s switching bonus returns after being pulled off the market at the end of April. New customers who switch to First Direct’s 1st account can get £175 free cash. 

To qualify for the bonus, you will have to complete the following steps: 

• Switch your everyday banking to using the Current Account Switch Service (CASS).
• Deposit a minimum of £1,000 (in single or multiple deposits) in your account and within 30 days of opening your First Direct 1st Account.
• Switch at least two direct debits or standing orders into your First Direct 1st Account.
• Register and log on to digital banking, within 30 days of your account opening.
• 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 market-leading 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. 

You are not eligible for this bonus if you have held a First Direct product before or held an HSBC current account on or after 1 January 2018. 

Lloyds Bank – get £175 [ending soon]

Be aware that this offer ends on 30 July. Lloyds has re-launched its £175 switching offer after it was pulled in February. Customers will have to move to a new Club Lloyds current account and jump over a few hurdles to get it. To be eligible, you must: 

• Switch your bank account to a new Club Lloyds current account
• Use the bank's switch service 
• Open a Club Lloyds Account (£3 monthly fee), Club Lloyds Silver Account (£13 monthly fee) or Club Lloyds Platinum Account (£24 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 before 30 July 2024.

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.   

If you’re planning to switch to one of the Lloyds Club accounts, you also get access to the 6.25% regular saver. 

Barclays – get £175

Barclays is offering £175 to new customers who switch to either the Barclays Bank Account or the Barclays Premier Current Account via its banking app, by 30 August 2024. 

Be aware, though, that the Premier Account has some caveats. While there is no monthly fee, it requires you to have £100,000 in investments or savings with Barclays, or an annual income of £75,000 paid into the Barclays Current Account. 

Plus, if you open the Barclays Bank Account, you will need to also opt into the bank’s Blue Rewards to qualify for the £175 cash incentive, which costs £5 a month. The scheme will give you cashback from certain retailers, an Apple TV+ subscription and access to its 5.12% Rainy Day Saver. 

Here’s what else you need to do to be eligible for the £175: 

• Switch to Barclays using its switching service. 
• Transfer over at least two direct debits to your new account. 
• Pay £800 into the account.

The bonus will be paid into your Barclays account within 28 days of you meeting the criteria.  

Co-operative Bank – get £100, plus £60 cashback

The Co-operative Bank is offering £100 cash to those who switch their Everyday Extra current account, (which costs £15 a month). Those who already hold this account are also eligible for the bonus. 

Get £100

Within 30 days of making the switch using the bank’s switching service, you need to do the following to qualify for the £100: 

• Transfer over two direct debits or standing orders. 
• Deposit at least £1,000 
• Use your new debit card five times. 
• Sign up to Co-operative Bank’s online or mobile banking. 

Get £60

You can also get an additional £60, paid as £10 a month for six months. To qualify, you need to have met all of the above terms. The monthly bonus will be paid to you by the 20th of each month. 

Co-operative Bank’s Everyday Extra current account comes with some perks, including worldwide travel insurance, mobile insurance and European breakdown cover. 

You won’t be eligible for this deal if you’ve received a switch bonus from Co-operative Bank since 1 November 2022. 

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 not confident about moving your cash, we explain here whether switching bank accounts could affect your credit score.