In a trend sparked by the recent change to the current account switching system, more and more banks are now offering some form of incentive to customers who switch to them from their competitors.
The current account switching process is free and has now been changed to make it easier for customers to change from bank to bank in order to get a better deal. This was intended to increase competition between banks and, by doing so, increase the quality of the different products available to consumers. In this sense the changes have been quite successful, with many banks now offering introductory incentives to people who switch their accounts to them.
TSB have recently launched a deal on its main current account that permits people to make as much as £60 per year by making contactless payments with their card. First Direct are about to start an offer that gifts people £150 in exchange for switching to their most popular current account. There are other banks that are also offering cash rewards and these include Nationwide and Halifax.
This is a big indication that the current account market is getting more competitive, with better deals for customers becoming more and more common.
However, even though it is now easier than ever to change the bank with which you have a current account and there are now better deals available than there have been in a long time, many surveys show that more than half of customers have never changed bank.
Charlotte Nelson at financial data website Moneyfacts says:
“Many of us are loyal to our current account provider, even if they offer us nothing in return for our fidelity. However, now that the seven-day switching service is in operation, there’s no reason not to switch – particularly as there are many enticing offers out there.”
Here are some of the best offers out there on the market right now:
You can now get a good deal from TSB that offers its customers cashback when they use contactless payments on their card. This deal offers 5% cashback on £100 worth of contactless payments every month. The account also offers 5% interest on the first £2,000 stored in it – this is much better than rates currently being offered by most savings accounts.
This bank is now offering people a lump sum payment of £125 if they switch from another bank to their “1st Account” current account. All you need to do to receive this sum is pay in at least £1,000 in the first three months of switching, you must also switch using the official switching service.
Nationwide are also offering a cash reward of £200 to share if you introduce a family member or a friend to their current account. You can recommend any number of friends to join Nationwide and they will all be paid £100 but the most that you can receive in a year is £1,000.
Halifax offer a deal on its Reward current account that pays out £100 should you choose to switch to it. This account also gives you a £5 reward for every month that you pay in £750, make two direct debits and stay in credit. This £5 is post tax as the gross sum sits at £6.25.
Yorkshire Bank and Clydesdale Bank
Both of these banks are paying out £150 to anybody who switches to their main current accounts. You are required to use the switching process and pay in a minimum of £1,000 a month and have two direct debits set up.
Find a suitable current account that meets your needs with MoneyExpert.