Consumers looking to earn cashback by switching bank accounts are urged to act quickly as many of the current switching offers could end in just weeks.
first direct’s 1st Account switching offer is due to end on the 12 July 2021. The switching offer enables customers to receive £125 cashback when switching to the account using the Current Account Switch Service (CASS) and when £1,000 is deposited into the new account within three months of opening*. More information about the offer can be found here.
HSBC also has a switching offer at the moment that sees customers earn £125 in cashback when switching to a HSBC Advance or Premier Account via the CASS. Although this offer was only launched on the 10 June 2021, its previous switching offer with the same perk only lasted for five weeks before being withdrawn. In order to receive the £125 cashback customers must switch a minimum of two direct debits or standing orders within 30 days of account opening*. More information about this offer can be found here and consumers can open the Advance account here.
In addition to the cashback offers, Virgin Money currently has a switching offer that sees customers receive a £150 Virgin Experience Days Gift Card when switching to its M Plus Account using CASS.
Although these offers may tempt consumers to switch their bank account, Rachel Springall, finance expert at Moneyfacts.co.uk, warns that they should carefully compare different bank accounts to ensure that they are getting the best deal, especially if they are planning on borrowing through the overdraft.
“Those looking to borrow would be wise to compare overdraft tariffs carefully as many accounts now charge more than 30% EAR, whereas one of the best deals with a lower charge comes from Starling Bank at 15% EAR,” she explained. “In addition, first direct currently has a £250 interest-free overdraft (thereafter charging 39.9% EAR) and is one of the providers paying a cash switching incentive of £125. However, the cashback offer for using the CASS is expected to be withdrawn in two weeks’ time, so consumers need to act soon to take advantage.
“It’s important that care is taken when comparing offers and consumers would be wise not to get blindsided by an upfront perk, as it’s the overall package of a deal that must be weighed up before they commit to a new current account. The cost to borrow using an overdraft, as well as any other benefits, are worth comparing carefully before someone commits to moving their account.”