Bank switching deals are back, with Lloyds Bank launching its latest offer of £200 – going head to head with the popular Nationwide switch deal offering £175 for new customers.
But the banks are not stopping there, both banks are also offering links regular savings account paying over 6%.
While the Lloyds switching bonus, which comes into play on 2nd October, is the highest switching offer on the market right now - we compare the two top payers to see which deal is better and whether it is worth switching current accounts.
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Lloyds £200 switch deal - what is on offer?
From 2 October, Lloyds Bank will offer a £200 bonus when you switch your current account to one of its Club accounts.
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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 Bank.
To be eligible for the £200 cash, you must:
- Switch to a Club Lloyds current account using the Current Account Switch Service (CASS) by 10 December 2024, and close your existing account
- Move over at least three active direct debits
The bonus will be paid within three days of the switch being complete.
The Silver and Platinum account imposes an extra £3 ‘monthly Club Lloyds fee. The good news is it can be waived providing that 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 account is free to hold.
You can make the switch online on the Lloyds website or via its mobile banking app.
You won’t be eligible for this deal if you’ve received a switching incentive from Lloyds Bank, Halifax or Bank of Scotland Current Account since April 2020.
The Lloyds Club accounts also come with an attached 6.25% Monthly Saver. You can save up to £400 a month and the rate is fixed for one year. Providing that you save £400 a month for one year, you would earn £150 in interest. And you can access your cash whenever you like. Although Nationwide’s savings rate is better, it doesn’t work out as well.
The Lloyds Club accounts comes with other perks too. Earn monthly interest of up to 3%, get up to 15% cashback at selected retailers like Sainsbury’s and Harvey Nichols, and choose one lifestyle benefit from a 12-month Disney Plus subscription, six cinema tickets a year or a Gourmet Society membership. The Silver and Platinum accounts also offer worldwide family travel insurance, AA breakdown family cover, mobile phone insurance and fee-free spending abroad.
How does the Nationwide £175 switch compare?
Nationwide is offering £175 when you switch either its Flex current accounts – the FlexAccount, FlexDirect or FlexPlus account (£13 a month).
To qualify, you must complete the switch within 31 days of requesting it, use the CASS to switch, deposit at least £1,000, switch over at least two active direct debits and make one debit card transaction.
It is worth noting that Nationwide is clamping down on those who switch regularly to benefit from the free cash and will not pay you if or if you’ve received a switch incentive from any bank since 18 August 2021.
We have more details on the Nationwide switch offer in our article.
Nationwide’s current account also has a regular saver attached, offering 6.5% AER. While it’s 0.25% more than the Lloyds rate, you end up with less. You can only save up to £200 a month – so after a year you would earn only £84.50 in interest. Plus, you can only withdraw up to three times a year and the rate is variable, so it could change at any time. If it follows the wider savings market, there’s a risk the rate could fall.
The current account also comes with some perks, for example 5% interest monthly on your current account balance for one year, on balances up to £1,500 a month (that’s £75 a month if you max it out). Plus, you could be eligible for 1% cashback on debit card transactions (capped at £5 a month). Other benefits include worldwide travel insurance cover for you and your family, AA breakdown cover in the UK and Europe and fee-free spending abroad.
Lloyds vs Nationwide
From 2 October, there will be four bank switching deals on the market – two major high-street banks being Lloyds and Nationwide. So, how do both providers compare?
Well, both offer good value – it depends on what you're looking for in a current account. If you’re on the hunt for the best savings rate, Lloyds comes out on top compared to Nationwide. But if you are on the lookout for interest paid on current account balances and cashback offers, Nationwide wins. Both accounts also offer a great deal of travel and insurance perks, so it comes down to what benefits serve you best.
Other switch deals on the market come from First Direct offering £175 and the Co-operative Bank giving up to £150 away. There are a lot more hoops to jump through with the Co-op Bank. Whereas the First Direct deal comes with a 7% regular saver attached and fee-free spending abroad.
The bottom line is, switching shouldn’t just be about the bonus on offer, but a current account that meets your needs.
