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 247,729 bank switches between July and September 2024 – and 11.1 million switches since the service launched in 2013, its latest data shows. Plus, Santander gained the most number of switches during that period, facilitating 83,666 customers to move to them.
There are currently four bank switching deals on offer, boasting up to £175 free cash.
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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.”
We round up the deals available now, and how to earn the bonus after making the switch.
The best bank switching offers
First Direct – get £175
First Direct’s switching bonus returns, offering 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 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.
Nationwide – get £175
Nationwide is also offering a £175 bonus when you switch to one of its Flex current accounts – the FlexAccount, FlexDirect or FlexPlus account (£13 a month).
To qualify, you must complete the following within 31 days of requesting the switch:
- Use the CASS to switch to Nationwide via the building society's website or mobile banking app.
- Pay in at least £1,000.
- Switch over a minimum of two direct debits to Nationwide.
- Make at least one debit card transaction.
But, you are not eligible for this switch deal if you have received a switch bonus from Nationwide or any other bank since 18 August 2021. Read more on Nationwide's £175 switch deal and the three current accounts on offer.
TSB Bank – Get up to £160 plus rewards
TSB Bank is back with its switching deal. You can get a £100 switching bonus when you move to a Spend & Save (free) or Spend & Save Plus (£3 monthly fee) current account with TSB, as well as £60 cashback and a choice of rewards.
To qualify for all three, here are the conditions you need to follow:
- £100 bonus: Complete a full switch using CASS, log into your account using the TSB mobile banking app and make a minimum of five debit card payments before 14 March. The bonus will then be paid into your account between 28 March and 11 April.
- £60 cashback: Make a minimum of 20 debit card payments every month and get double cashback of £10 every month for the first six months (if you’ve completed the switch).
- Choose your reward: When you make 20 debit card payments in August, you get to choose one out of three rewards in September – a night away for two at a choice of hotels including Mercure, two Odeon cinema tickets every month for three months or a NOW Entertainment membership for six months.
You will not be eligible for this deal if you’ve already used a TSB switching deal since 1 October 2022. This is the lowest-paying switching deal that TSB has introduced – having previously offered up to £210 for switching to the bank
Santander – get £150
Santander is boasting £150 free cash when you switch to either its Everyday current account, Santander Edge account (£3 a month), Santander Edge Up account (£5 a month) or Private (v2) current account (£5 a month).
To qualify, you must complete the following within 60 days of requesting to switch:
- Use the CASS to switch to one of the eligible Santander accounts
- Deposit at least £1,500 into the new account
- Set up a minimum of two direct debits
If you qualify, you will receive £150 within 90 days of the switch being requested.
The cash bonus is on offer to new and existing customers. You are not eligible for this offer if you have taken advantage of a switch incentive with Santander since September 2021.
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 Barclays and Lloyds Bank 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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