The move comes after HSBC launched its £170 switch offer last week.
Lloyds Bank will incentivise any customers switching from another bank to its Club Lloyds or Club Lloyds Platinum Account with a £125 cash bonus. The offer is available with immediate effect and is only available through the Current Account Switch Service (CASS) until 27 June.
“On top of £125 for switching to us from 17 May, new Club Lloyds customers will also be able to pick from a range of lifestyle benefits, earn cashback while they shop and gain access to exclusive offers on savings and mortgages,” said Martin Turner, Head of Personal Current Accounts at Lloyds Bank.
The switching offer comes after HSBC announced a similar £170 cashback offer for those looking to switch to its Advance or Premier current accounts last week.
In addition, Nationwide and first direct also hold current account switching offers for those looking to take advantage of the CASS.
Nationwide will offer £100 for new customers to switch to their Flex Account, while those who have a current account, mortgage, savings account, or business savings with the high-street bank can enjoy a £125 offer for making the switch.
Lloyds Bank do extend this offer to existing customers who meet a certain set of criteria. These customers need to move their current account from another bank using the CASS system and if they haven’t had a switching bonus from Lloyds Bank before.
This means existing members cannot access the offer by upgrading their Lloyds account internally. In addition, customers with other products from the bank, such as a mortgage or savings account, with a current account from a different provider will also be eligible for the switching offer.
Alternatively, first direct will provide those making a switch to their 1st Account with £150 cashback.
“There are now several brands out there offering upfront switching incentives to entice banking customers to move their existing current account,” said Rachel Springall, Finance Expert at Moneyfacts.
“As these offers can come and go throughout the year, consumers should not expect them to be around forever. Just last week, Halifax withdrew its free cash offer of £125,” she said.
However, Springall warned consumers to consider their options and spending habits before committing to a current account of their choice.