Nationwide BS offers market-leading current account switching deal

Switchers could earn £200 for switching to Nationwide BS, £25 more than the second highest incentive on the market.

Nationwide BS has increased its current account switching incentive to a market-leading £200 today. This can be earned for transferring to either the FlexAccount, FlexDirect or FlexPlus.

All three accounts will have access to the high street bank’s Flex Instant Saver, an easy access account which will pay a rate of 2.00% AER from Wednesday.

The planned increase means that this current account will offer 0.35 percentage points less than the best rate on the market at the time of writing. 

To qualify for the £200 switching incentive, users are required to use the Current Account Switch Service (CASS), a free process which moves users from one account to another. In addition, as with many switching incentives, Nationwide BS requires its users to set up at least two direct debits per month.  

Existing Nationwide BS customers who hold current accounts with other providers are also eligible for the offer. To claim their incentive existing members will be required to complete the process online.

The FlexAccount account, the most basic of the three options, is a fee-free account that also allows access to an arranged overdraft.

The FlexDirect, meanwhile, is also fee-free but is designed for those who are comfortable with internet banking as users will have limited access to branch and telephone support.

However, it does offer 5% AER on credit balances up to £1,500 for 12 months. After this period is over, the interest rate will revert to 0.25% AER. In addition, this is only paid when users deposit £1,000 or more into their account per month.

Finally, the FlexPlus, as the premium option of the three accounts, includes worldwide travel, mobile phone and European breakdown insurance for a monthly fee of £13.

It does not charge any transaction fees for using its Visa debit card abroad and does not have access to the 5% AER in credit interest.

In comparison, Nationwide BS’s switching incentive is £25 more than the second highest offers on the market.

One provider which does offer a £175 current account switching incentive is NatWest, which gained 20,000 current account holders in the first quarter of the year. According to CASS, this is more than any other provider.

The £175 switching incentive is also offered by the Royal Bank of Scotland, a subsidiary of NatWest.

Meanwhile, first direct, which is a banking division of HSBC, also offers a £175 switching incentive for its 1st current account.