There are now several big names offering cash incentives to switch bank accounts. We round up some of these offers below.
Last November, nearly 163,000 people switched bank accounts through the Current Account Switch Service (Cass). It’s the highest number of switches the free service has facilitated in a calendar month since it launched in 2013.
John Dentry, of Pay.UK, the owner and operator of Cass, said many of these people made the switch because they were either looking for an account which facilitates online banking or to take advantage of a switching incentive.
“It’s encouraging to see more consumers and businesses utilising the service to take advantage of a healthy banking market and ultimately find a current account that best serves their needs,” he said.
While a potential cash incentive may seem tempting, it’s important to remember that the bank offering the most lucrative switching offer may not be the right one for you.
In this article, we outline:
- What are the top-paying bank switching offers currently available?
- Top accounts for ongoing rewards
- Switching offers for students
Read more: Six best current accounts
*This article may contain affiliate links that can earn us revenue
What are the top-paying bank switching offers currently available?
HSBC is currently paying the biggest cash incentive to switch at £220. This is closely followed by NatWest and the Royal Bank of Scotland, which is enticing potential customers with a £200 cash injection.
More on these accounts can be found below.
If you’re interested in taking advantage of one of these offers, make sure to use the Cass service. It’s free to use and it makes your switch easier by moving your direct debits and redirecting any payments to your new account.
Read more: How to switch current accounts
HSBC
Cash incentive: £220
Eligible bank accounts: HSBC UK Advance, Premier Bank Account
To earn the maximum cashback from HSBC you’ll not only need to switch bank accounts but build a regular savings habit.
This is because the full £220 sum is earned in two stages. In the first stage you’ll earn £100 by:
– Switching to a HSBC UK Advance or Premier Bank Account
– Making two direct debits or standing orders within 30 days of account opening
– Paying in at least £1,500 and making 20 or more debit card payments within 60 days
– Depositing £50 or more into its Online Bonus Saver account which pays a starting rate of 4% AER
The remaining £120 is paid in £10 monthly instalments over 12 months. To qualify for each instalment, you’ll need to complete the following:
– Pay in at least £1,500
– Make at least 20 debit card payments
– Log into your mobile app
– Deposit £50 or more into your Online Bonus Saver
Royal Bank of Scotland
Cash incentive: £200
Eligible bank accounts: Royal Bank account
RBS’s switching offer is open to new customers who haven’t received a switching incentive from NatWest Group since January 1, 2020.
Apply online or via our mobile app to switch a current account held elsewhere using the Current Account Switch Service into a Royal Bank account.
You need to deposit £1,250 into your account and log in to our mobile banking app within 60 days. The money will be paid into your account within 7 days if you meet the eligibility criteria.
Switch incentive end date: There is no end date but the offer may be withdrawn at any time. T&Cs apply.
Santander
Cash incentive: £185
Eligible bank accounts: Everyday Current Account, Santander Edge Current Account, Santander Edge Up Current Account, or Private Current Account v2
Santander is another provider which is offering a cash incentive for switching to one of several current accounts.
The Everyday Current Account could be a great option for those wanting a basic home for their cash with no monthly fee.
Its Edge accounts, meanwhile, are akin to NatWest’s Reward account. You’ll need to pay a monthly fee to use it but you can make this back and more in cashback. We explain it in more detail on our best current accounts page.
These accounts are also eligible for Santander Boosts, a scheme which provides vouchers and personalised discounts at selected retailers.
The Private Current Account v2, meanwhile, is for Premier banking clients.
Switch incentive end date: There is no end date but the offer may be withdrawn at any time. T&Cs apply.
Cash incentive: £175
Eligible bank accounts: 1st Account
First Direct, which is part of the HSBC banking group, offers just one current account. Named the 1st Account, it comes with no monthly fee and a few perks:
– A £250 interest-freeoverdraft (subject to status)
– Access to its 7% regular savings account
– No first direct fees for spending abroad
The 1st Account is a Times Money Mentor award-winning bank, picking up the accolade of “Best Current Account Provider” last year.
Switch incentive end date: There is no end date but the offer may be withdrawn at any time. T&Cs apply.
Lloyds Bank
Cash incentive: £175
Eligible bank accounts: Club Lloyds accounts
Lloyds Bank’s Club Lloyds account typically comes with a £3 monthly fee, but this is waivered if you deposit more than £2,000 into your account each month. If you can get this account free then you do get some great perks, including one of the following as a benefit:
– 12 months of Disney + (which costs £4.99 a month)
– 6 cinema tickets
– An annual magazine subscription (titles include Cosmopolitan, Men’s Health, and Country Living)
– An annual Coffee Club and Gourmet Society membership (which costs £5.99 a month)
Switch incentive end date: There is no end date but the offer may be withdrawn at any time. T&Cs apply.
Bank accounts that offer the best ongoing rewards
If you are looking for a bank account that enables you to earn cashback on your everyday spending then Chase is offering 1%, subject to conditions.
Perhaps you would prefer an account with a great linked savings account. If so Barclays offers 5.12% interest up to £5,000 if you join its Blue Rewards Scheme.
However, you’ll need to take out a Premier account with the provider to take advantage of this scheme, which comes with a monthly fee if you don’t meet the affordability requirements. If this has put you off, and you still want to stay with a bank that provides a great savings account, then it may be worth checking out some of the other best savings accounts available.
This current account from JP Morgan’s UK bank Chase* comes with ongoing rewards.
You can earn 1% cashback on purchases such as coffee, your weekly grocery shop or next holiday. You just need to activate cashback in the app to get started.
Choose to round up your spending to the nearest £1 and the bank will autosave the difference for you. You can also earn 5% AER (variable) interest on your round-up balance. After a year, Chase* automatically transfers your remaining round-up balance to your current account.
Chase* also has an easy-access savings account paying annual interest of 4.1% AER (variable).
From April 24, the bank started paying 1% AER (variable) on money in a current account too.
Barclays
To take advantage of the Blue Rewards Scheme you’ll need to open Barclays’ Premier Account. It comes with a £20 monthly fee, but will be free if you meet one of the following criteria:
– Pay in a gross annual income of at least £75,000
– Have a total balance of at least £100,000 in savings with us, in Barclays UK investments, or in a mixture of both
The Premier Account also includes:
– Exclusive savings and mortgage rates. This includes an Instant Easy Access ISA at 1.66% AER on balances up to £10,000. However, it’s worth noting that several different providers better this rate.
– Access to “financial guides”, a team of bankers willing to guide you through your personal challenges.
– The option to join Barclays Avios Rewards for £12 a month, a scheme which gives you money off future journeys with British Airways.
– Apply for interest-free overdrafts of up to £500.
– Access to a black card, which allows ATM cash withdrawals of £2,000.
This makes it a handy account if you’re a frequent traveller and you wish to use its Avios Rewards scheme. For your £12 monthly fee you’ll be guaranteed 1,500 Avios points, which has a face value of around £15. But its real value is in the bonus 7,000 points you’ll receive for being a member for a full year and its discounted airport lounge passes.
If you are looking for a credit card that offers cashback or rewards when you spend then check out our top ratings.
Student switching offers
If you’re at university, we have ranked the best student bank accounts.
But here’s a quick snapshot of the student accounts with perks:
| Bank | Perk |
| HSBC | £100 cash bonus plus a year-long subscription to Headspace, a meditation and mindfulness app |
| Santander | Guaranteed 0% overdraft each year and a four-year young person’s railcard |
| Natwest and RBS | A four-year Tastecard, which gives you discounts at many restaurants in the UK |
For more information about student finances generally, check out our article here.
Remember: choosing a bank account based only on the free gifts it offers may not be the best method.
People tend to change their bank account less often than their partner, so you might be better off heading for a bank with great customer service rather than a free gift.
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