The Co-operative Bank has announced a new bank account switch deal, which could be worth up to £150.
Its new ‘Switch and and Stay’ offer is available to both new and existing customers who fully move their everyday banking to a Standard Current Account or its highly-rated Everyday Extra packaged account. To get the full £150, they have to keep their day-to-day banking with the provider for at least three months.
The deal from the ethical provider is the third to launch in September. First Direct is running a £175 switcher deal, while Nationwide has just launched its own £175 offer.
Start your trial of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Start your trial
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Before making a switch, we recommend checking the small print on the offer and finding out what hoops you will need to jump through to get hold of the cash. It’s also imperative to consider whether the account or accounts that are being promoted adequately meet your needs. Another thing to note is that switching can affect your credit score.
Latest Videos FromMoneyWeek
So, how can you get your hands on the £150 bonus? Here’s everything you need to know about the Co-operative Bank’s deal.
How does the Co-operative Bank account switch deal work?
You can get up to £150 from the Co-operative Bank if you switch to one of two current accounts, and stick with them for at least three months. There are several other hoops you need to jump through to guarantee the cash. The current accounts the bonus comes with are:
- Standard Current Account: a no-frills, fee-free account
- Everyday Extra: a packaged account that costs £15 a month
To secure the bonus, you must complete a full switch to one of these two accounts. If you’re a new customer, you will have to request a Current Account Switching Service (CASS) switch within two weeks of the account opening, and complete it within eight weeks of the request. You won’t be eligible if you’ve taken advantage of a Co-operative Bank switcher offer since 1 November 2022.
Once your account has been switched over, you will have 30 days to do the following - after which you will have an initial £75 wired into your account:
- Deposit £1,000 into the new account (this includes the balances transferred as part of your switch)
- Have two active direct debits on the account
- Make a minimum of 10 debit card or digital wallet transactions
- Register for online or mobile banking
- Set up your debit card in a digital wallet
After you get the initial £75, you will have to continue jumping through specific hoops for the next three months in order to bag the full £150. In each month after your switch, you will have to:
- Deposit a minimum of £1,000 into the account
- Continue to have two direct debits
- Make at least 10 debit card or digital wallet transactions
For all the terms and conditions of the switcher incentive, visit the Co-operative Bank’s website.
What is the difference between the two current accounts on offer?
The Co-operative is promoting two current accounts with its switcher offer. Both can be opened as either sole or joint accounts. Here’s what you can get with the pair, and the account rules you need to be aware of.
Standard Current Account
This option is the bank’s most basic offering. It comes with no fees, and gives you the option of arranging an overdraft.
It’s worth being aware that you can only manage the account online or through the Co-operative’s mobile app. For the environmentally-conscious, the contactless debit card you will get with it is PVC-free.
Everyday Extra
Going for this account will get you several additional perks alongside your current account. It offers AXA worldwide travel cover, LSG mobile phone insurance, and UK and European breakdown cover through the RAC.
This will set you back £15 a month (£180 a year). But the Co-operative Bank is running a deal until 4 November that means you will get this monthly fee handed back to you for the first three months after signing up to the account. It means the account will effectively cost £11.25 a month (£135 a year) for your first 12 months. The account can be managed either online, or through the mobile app.
How does the Co-operative Bank compare with the rest of the market?
The Co-operative’s switch deal is not as generous as the other two that are currently on offer. You also have to jump through more hoops to get your hands on the cash, compared to Nationwide and First Direct.
Another thing to note is that the Co-operative’s online banking service ranks poorly, and it doesn’t score as highly as the others when it comes to customer satisfaction. But where the provider is competitive with its rivals is with its ethical banking ranking. Although Nationwide scores slightly higher, according to Ethical Consumer, the Co-operative Bank is not far behind and comes in significantly above First Direct.
When it comes to the savings accounts that can be paired with the current accounts on offer, the Co-operative Bank has several that offer competitive rates. For example, its regular saver is on a par with First Direct’s. However, not all of its accounts are currently beating inflation.
At the end of the day, there is no ‘best’ current account to switch to as it all depends on your needs.
To keep up to date with new deals and offers, see our guide to the best bank switching deals – which includes the Nationwide £175 switching offer.
