Switching banks: not as much of a hassle as you’d think, and definitely more rewarding than many realise.
If you need to know how the current account switch service (CASS) works, check out our guide here – but essentially, it’s free, it’s regulated and your money is protected. It also only takes about a week to complete – and given the ongoing battle between banks and building societies for your custom, several will offer you rewards to move to them.
The attractive headline amount of £175 to switch is, of course, a lovely bonus – but always make sure you know what else the bank offers to ensure it suits your needs, whether that’s local branches, access to high-interest rate savings accounts, a great app or anything else.
There are fewer options on offer than in previous months, to note, with Nationwide’s offer closing at the end of March and TSB’s at the end of February.
First Direct: £175
An ongoing offer with first direct and still the best one on the market at present.
Opening a 1st Account with them earns you a cash reward of £175, but you can’t have had an account with them before or an HSCBC account since 2018.
Additionally, you could get a fee-free £250 overdraft and access to a regular saver account that currently offers a hefty 7 per cent interest rate – fixed for 12 months – and in which you can save a maximum of £300 per month. Assuming you put in the maximum on the first day of each month, that would earn you about £136.50 in interest across the year.
As tends to be the case with most cash switch offers, to claim the reward you must open the account, switch using the CASS, including at least two direct debits and deposit at least £1,000, within 45 days of opening it. There are other requirements too such as making at least five payments on your debit card and logging onto their digital banking service.
NatWest: £150
While Lloyds and others have now removed their offers, NatWest is back in town with a £150 switch offer to open a Reward account – and you can earn more over the year from it too.
There are several levels of Reward account offering different experiences and having different costs, but the basic Reward bank account costs £2 per month to have open and you can earn £5 a month from it by having two direct debits and logging into the app. That additional £3 a month profit means an extra £36 a year in your pocket, so, in total, after one year it offers £186 to switch.
You also get Rewards in cashback terms from spending with certain retailers and there are other basic benefits included, such as round-ups, cardless withdrawals and more.
The regular saver you get access to pays a decent 6.17 per cent at present but only lets you save £150 a month.
Along with using the CASS service to switch you need to pay in £1,250 and log into mobile banking within two months to get the reward and you cannot have had a switch reward from NatWest, RBS or Ulster Bank previously.
Cashback and alternative rewards
There is a bit of a dearth of other switch offers at present from challenger banks or building societies, but if you’re looking beyond sign-up rewards there are a couple of options.
Chase is offering one per cent cashback on everyday debit card spending for 12 months. It’s a maximum of £15 per month, so £180 is possible in total, but of course, you’ll need to factor in whether you’d earn the full amount if that’s your aim.
Everyday spending of £1,500 per month would equate to £15 cashback at a rate of one per cent – but check the cashback exceptions to see if it’s suitable for you. There are also changes coming during April so check on those. You’ll also get access to a 3 per cent savings rate, and a 5 per cent round-ups pot.
Halifax offer a choice of rewards for their Reward Current Account that includes £5 a month paid in.
Switch offers and associated rates are correct at time of publishing. As always, if you are considering switching banks and using the CASS to do so, ensure you meet the eligibility criteria and that the bank account conditions suit your needs beyond just the cash switch bonus.
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