MARTIN Lewis’ Money Saving Expert has named Nationwide and Lloyds among the top bank accounts paying free cash.
Banks often offer incentives to attract new customers, usually in the form of a cash bonus.
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And five major banks, including Nationwide and Lloyds, have launched new schemes to allow customers to pocket free cash when they move current accounts.
All you need to do to get it is switch your current account using something known as the Current Account Switching Service (CASS).
There are also some requirements, like setting up a certain number of direct debits, or paying in a set amount of money, though this will depend on each offer and varies from one bank to the next.
Lloyds revealed that current account holders who switch to its Club Lloyds account can receive a whopping £200, the largest bonus on offer right now.
Nationwide Building Society is offering customers £175 to switch to its FlexDirect, FlexPlus or FlexAccount current accounts.
Switching bank accounts has never been easier thanks to the Current Account Switch Service (CASS), which will move you withing seven days and handles most of it for you (see more on how it works below).
Make sure to check all the terms of the switch and full eligibility criteria so you don’t miss out on the bonus.
Plus you’ll want to check that the account suits your needs too, for example if you need an overdraft that it offers one, or that the bank has a nearby branch if you prefer to do your banking in person.
Here is the full list of banks offering the best switch offers.
Lloyds
Lloyds has confirmed that customers who switch to it Club Lloyds account can get £200.
Both new and existing customers can take advantage of the free cash offer available for those who switch between October 2 and December 10.
Those who switch to the Club Lloyds account can expect the £200 to be paid within three days of the switch completing.
Though this is the highest bonus being paid now, be aware that the account comes with a £3 a month fee unless you pay in £2,000 a month.
To do the switch, customers can either scan the QR code available on the bank’s website or use the mobile app.
New customers can get the bonus, and so can existing Lloyds customers if they don’t already have a Club Lloyds account and open a new one.
Those who already received a switch bonus since April 2020 from Lloyds, Halifax or Bank of Scotland (all part of the same group) won’t be eligible.
The Club Lloyds also offers a range of perks, including a 12-month Disney+ subscription, a choice of Vue or Odeon cinema tickets, a magazine subscription, or a Coffee Club and Gourmet Society membership.
But remember you pay a fee for the extras, so work out if it’s worth paying the fee to get these.
Here are the details and costs of the Lloyds’ account.
- £3 monthly fee, waived each month that you pay in £2,000 or more.
- Earn credit interest on balances up to £5,000, when you pay out two different direct debits each month.
- Choose a yearly benefit from: 12 months of Disney+, six x cinema tickets at ODEON or Vue cinemas, An annual Coffee Club and Gourmet Society membership, An annual magazine subscription.
The same bonus is also available when switching to the Club Lloyds Platinum Account and Club Lloyds Silver Account but these comes with a £22.50 and £11.50 a month fee, respectively, on top of the £3.
Nationwide Building Society
Nationwide Building Society has launched a new offer of £175 to switch to its FlexDirect, FlexPlus or FlexAccount current accounts.
To get the free money, you must switch through the Current Account Switch Service (CASS).
It’s worth noting that the FlexPlus account does charge a monthly fee in return for benefits such as insurance and breakdown cover.
Currently it’s £13 but that will increase to £18 per month from December.
Once again it’s worth checking that these are worth paying for.
You’ll need to have at least two direct debits coming out of the account and pay in at least £1,000 within 31 days of making the switch.
You’ll also need to pay for something with your debit card, but there are some transactions like gambling that won’t count.
First Direct
First Direct has confirmed that it has relaunched its popular cash switch incentive for anyone who opens a 1st Account.
Customers can receive a payment of up to £175 by using the Current Account Switch Service (CASS).
Users have to switch at least two direct debits or standing orders within 30 days of opening the account to qualify for the cash.
Switchers also need to add at least £1,000 into the account, register and log on to internet banking and use the debit card at least five times within 30 days of opening the account.
Customers who meet the criteria should expect the free bonus in their accounts by the 20th of the following month.
The bank revealed that new customers switching to their current account to first direct can expect several extra perks, including a £250 interest-free overdraft.
You won’t qualify for the switching incentive if you have previously held a First Direct product or opened an HSBC current account on or after January 1, 2018.
Customers moving across to the bank will also get access to a regular savings account paying 7% interest, one of the best deals around, as well as a 0% overdraft on the first £250.
Co-operative Bank
The Co-operative Bank has announced eligible customers could receive up to £150.
The first £75 is given when a customer completes a switch to the bank.
Then, the bank is offering three monthly instalments of £25 – another £75 – to make up the £150.
Both new and existing customers can apply to switch to a current account to make themselves eligible for the payment.
Like any good offer, there are a few boxes to tick off before the big payment comes in.
Customers must apply for a Standard Current Account or Everyday Extra account.
To be eligible, customers must not have benefited from a switch incentive at The Co-operative Bank since November 1, 2022.
And to receive the first £75, customers need to follow a series of rules.
They are:
- Deposit a minimum of £1,000 into their new account (this includes balances transferred as part of the switch).
- Have 2 active Direct Debits.
- Make a minimum of 10 debit card or digital wallet transactions (pending payments will not count toward the fulfilment of this criteria).
- Register for our online and/or mobile banking service.
- Set up the debit card in a digital wallet (Apple Pay, Samsung Wallet or Google Pay).
That leaves the three £25 instalments – and there are some rules to claim them too.
Bankers need to deposit at least £1,000 into their account, have two direct debits and make a minimum of 10 debit card transactions.
How to switch current accounts
Switching bank accounts can in most cases be done via the Current Account Switch Service (CASS).
Dozens of high street banks and building societies are signed up, including Barclays, First Direct, Lloyds, Monzo, Santander and TSB.
The full list of participating banks and building societies is on the CASS website.
All you have to do is apply for your desired new current account and the new bank will tell your existing one that you’re making the switch – then they will do the rest of the legwork.
Any direct debits are moved across for you, but there are a few things you can do before applying.
This includes choosing the date you switch and transferring any old bank statements to your new account.
You can get these by asking your existing bank.