The best offers for switching banks: get up to £200 free cash

Looking to move bank accounts? You can now bag as much as £200 for switching current accounts from two major banks

Not happy with your current account? Then it’s easy to switch bank accounts – and you can now bag as much as £200 from two major banks when you move your current account.

There used to be plenty of offers on the market for switching banks, but during the pandemic, most banks pulled these deals. 

However, bank switching offers are now coming back as lenders fight over new customers. 

The cash bonuses on offer for switching banks have returned to levels not seen for years. Right now you can pick up £200 just for switching your account. That's as close as you can come to picking up free money for almost no work. 

The Current Account Switch Service (CASS) makes it quick and painless to switch banks to move current accounts 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 your old account will automatically be changed to 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 of the accounts below 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.

The best offers for switching banks on the market  

HSBC*: £200 free cash 

If you’re new to HSBC, you can bag £200 for moving your current account to the HSBC Advance account*.

The account is free, but you will need a minimum of £1,500 paid into the account within 60 days of opening the account and should be switching over at least two direct debits.

The HSBC Advance account comes with some perks, which include access to exclusive savings rates as well as discounts at ASOS and Costa Coffee. The linked savings account has a 3% interest rate on cash up to £10,000, but only for months where you do not withdraw from it.

To qualify for the £200 bonus, you must be a new to HSBC or First Direct (its sister bank) and can't have had an account there since January 2019. The switch must be from another account. You should also be eligible for a £1,000 overdraft. 

The overdraft comes with a £25 buffer, so if you go beyond the arranged overdraft limit by £25 or less, it’s still at 0% interest. After that, you will be charged 39.9% APR based on a £1,200 overdraft.

Nationwide: £200 bonus 

Nationwide currently  also has the top switch bonus on the market, giving you £200 if you switch to the Nationwide FlexPlus, FlexDirect or FlexAccount accounts. You must set up and maintain two direct debits as part of the switch.

FlexDirect and the FlexAccount are free accounts, but FlexPlus costs £13 a month.

If you are happy to manage your account primarily online, then the Nationwide FlexDirect (free account) also comes with a 5% interest rate on balances up to £1,500, plus a 12 month interest free overdraft.

First Direct*: £175 switching bonus  

Customers who use the Current Account Switch Service and pay in at least £1,000 to a new First Direct 1st Account will receive £175. The offer is only available to new First Direct customers, or HSBC customers who haven't opened an account since 1 January 2019.

A smaller bonus of £20 is also available for those who open an account and use online or mobile banking within three months. There's no need to pay in any money to get the smaller bonus. 

On top of the switching bonus, First Direct also offers a 7% regular saver account, fixed for 12 months. To receive the full amount, savers must put away £25 to £300 a month - the maximum you can save in any given year is £3,600.

First Direct also offers an overdraft of up to £250 at 0% EAR, subject to status.  

These options make this one of the best offers for switching banks.  

*When you open an account through this link, we may earn an affiliate commission.

TSB: Up to £100 switching bonus 

This deal is open to both new and existing customers, through if you have used the switching service to claim a TSB offer since 1 October, you are not eligible. 

You can bag two separate bonuses of £50 each if you do the following:

1. Switch and open a TSB Spend & Save account or a Spend & Save Plus account before 16 December, and then log onto the online banking app at least once to receive the first £50. 

2. For the second £50 bonus, make sure you have at least two direct debits going out from this account, use the debit card for at least five transactions and pay in at least £500. All this must be done by 13 January 2023 to be eligible for the second £50 bonus.

TSB said it will make all bonus payments by 31 August 2023 - so you may have to wait some time to benefit from your switch bonus. 

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