Lloyds Bank returns with £175 bank switch bonus – is it worth moving banks?

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.

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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.