If you've been thinking about switching your current account, now could be a good time as bank switching deals start to flow back into the market.
Both Nationwide and Lloyds Bank have returned with two new offers for customers who move their current accounts to them.
Nationwide, which made the headlines this week as it brings back its £100 ‘Fairer Share’ bonus, is offering a £200 switching incentive, will pay existing members up to £200 if they move their current account to the building society.
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The £200 deal is one of the best now available on the market - we explain below who can get it.
Lloyds Bank has also launched a £175 deal for new and existing customers if they switch to a new Club Lloyds current account.
Customers can earn cashback of up to £90 each year when shopping with high-street retailers – but you’ll need to pay a £3 monthly fee.
Nationwide’s £200 member-only switching offer
Nationwide's switching deal is open to those already with the building society - maybe with a mortgage, an ISA or if they want to move to a different account type.
The last time Nationwide offered a £200 switching deal was in September 2023, which was highly popular.
To be eligible for the bonus this time round, you need to:
- Be a Nationwide customer (and were a customer on 31 March).
- Complete a full switch to a Nationwide current account using the banks switch service
- Have a minimum of two active direct debits coming out of your Nationwide account.
- Open a Nationwide current account using the Nationwide website or through its mobile banking app.
- Complete the switch within 28 days of requesting it.
Should you bank with Nationwide?
According to the latest current account bank switching figures, one in every six customers chose to bank with Nationwide, resulting in a record 163,363 switches between October and December 2023.
Nationwide offers some of the best savings accounts when compared to other high-street lenders such as Barclays, Santander, NatWest, HSBC, Lloyds and TSB. However, smaller, challenger banks often pay higher rates.
For example, you can earn 6.5% with Nationwide’s regular savings account. This is only second to The Co-operative Bank, First Direct and Skipton’s top 7% rate.
Lloyds Bank’s £175 switching bonus - how to get it
Lloyds has re-launched its £175 switching offer after pulling its deal in February. The offer will be available from 28 May and customers will have to move to a new Club Lloyds current account.
But you’ll have to 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.
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.
How do Lloyds savings accounts compare?
If you’re planning to switch to one of the Lloyds Club accounts, you also get access to the 6.25% regular saver, which is one of the best regular savings rates in the market right now (the highest rate is 7%).
You can stash between £25 and £400 a month in the account and the rate is fixed for a year, beating the Bank of England’s 5.25% interest rate and the current rate of UK inflation, which stands at 2.3%.
