With many customers being reticent to move their current accounts providers realise that they have to to make their banking services more attractive to lure consumers away from their current bank or building society.
One of the ways they do this is through cashback offers – literally paying customers to move to their current account.
We’ve looked at the best deals in the marketplace where customers can benefit from a ‘golden handshake’ in the form of cash rewards for switching.
There are quite a few banks and building societies out there that offer cash to switch current accounts. However, it should be noted that in order to qualify for the cash for switching incentives, most banks will require you to meet certain terms and conditions within a set timescale. Therefore, it’s important that customers fully understand what they need to do to qualify for their cashback.
It’s a good idea to check that both your new provider and old bank are part of the Current Account Switch Guarantee. In a nutshell, this makes switching your current account simple, reliable and stress-free, with the guarantee your new bank will take care of closing your old account, moving your balance and switching any payments too. However, if one or both banks are not part of this service then you will have to do all of this yourself.
HSBC currently offers the highest cashback of £175 for new customers switching to its Premier and Advance current accounts. In both cases, a minimum of two direct debits or standing orders must be moved using the Current Account Switching Service within 30 days of account opening to qualify.
The eligibility criteria for the Premier account includes a minimum single income of £75,000 (as well as holding an HSBC mortgage, investment, life insurance or protection product), holding minimum investable assets of £50,000 or if the applicant has already qualified for an HSBC Premier account in another country.
The Advance account, however, only requires a minimum income of £10,500 every six months or a minimum of £1,750 per month to be eligible.
Another account that offers a cashback incentive, which has recently been raised back to £100 after being reduced to £50 for a short time in 2019, is first direct’s 1st Account. New customers can benefit from a £100 cash switch bonus as long as they use the Current Account Switching Service and deposit at least £1,000 over the first three months.
Nationwide Building Society and TSB both offer recommend a friend schemes that pay £100 on switching.
Nationwide’s FlexDirect account offers £100 each to new customers if they are recommended by existing current account holders. The minimum monthly income is just £1,000 and they are also paying the top interest rate of 5% AER on balances up to £2,500 for the first 12 months, reverting to 1.00% thereafter.
As well as being recommended by an existing Nationwide Building Society customer, new applicants must use the Current Account Switching Service and transfer a minimum of two direct debits.
TSB’s ‘recommend a friend’ scheme also offers £100 each to the new account holder and the recommending party. Existing customers can only recommend a friend a maximum of five times and the new account holder must switch using the Current Account Switching Service within 28 days of account opening and have a minimum of two active direct debits and credits for at least £500.
Find out more about switching your bank account.
Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
