News
August 2023
UK banks are offering financial incentives of up to £200 to attract consumers to switch current account.
There is currently 12 accounts on offer for those that wish to switch and receive cash to do so, from Royal Bank of Scotland, NatWest, Halifax and more.
The monthly charge for the account varies from no monthly charge, up to £17 a month but none of the accounts have a minimum income that customers must meet to get the switching deal. Although some do require a minimum monthly deposit.
Provider | Product | Account Type | Minimum Monthly Deposit | Monthly Charge | Cashback Incentive to Switch Account | Conditions of Cashback |
NatWest | Select Account | standard | £0 | £0 | £200 | Apply online or via the app, deposit £1,250 and log into the app within 60 days of opening the account. Within 7 days of conditions being met the cashback will be paid. |
Royal Bank of Scotland | Select Account | standard | £0 | £0 | £200 | |
Ulster Bank | Select Account | standard | £0 | £0 | £200 | |
NatWest | Reward | standard | £1,250 | £2 | £200 | |
Royal Bank of Scotland | Reward | standard | £1,250 | £2 | £200 | |
NatWest | Reward Silver* | added value | £0 | £10 | £200 | |
Royal Bank of Scotland | Reward Silver* | added value | £0 | £10 | £200 | |
NatWest | Reward Platinum* | added value | £0 | £20 | £200 | |
Royal Bank of Scotland | Reward Platinum* | added value | £0 | £20 | £200 | |
First Direct | 1st Account | standard | £0 | £0 | £175 | Open the account and pay in at least £1,000 within 3 months of opening the account. Within 28 days of the conditions being met the cashback will be paid. |
Halifax | Reward Current Account + Reward Extras | standard | £1,500 | £0 | £150 | Switch account and the cashback will be paid within 10 working days of starting the switch. |
Halifax | Reward Current Account | standard | £0 | £3 | £150 | |
Halifax | Ultimate Reward Current Account | added value | £0 | £17 | £150 | |
Halifax | Ultimate Reward Current Account + Reward Extras | added value | £1,500 | £17 | £150 | |
* Existing customer only |
Katie Brain, Consumer Banking Expert at Defaqto, the UK’s most trusted source of financial product and market intelligence, said: “It’s never been easier to switch banks thanks to mobile and online banking systems, online identity verification and the Current Account Switching Service. Therefore people should shop around to ensure they’re not missing out on good offers.
“It’s not just the cash incentives to open an account that people should look at though. Whilst it’s nice to receive some additional money for not having to do anything apart from switching, there’s other perks and benefits to accounts too so find the one that is best for you. With some accounts, you can continue to make money through your account via rewards too.”
Top tips for switching bank accounts
- Open a separate account to your main bank account if you are concerned about transferring all your outgoings.
- Register with a credit score provider; Experian, Credit Karma, MSE, Clearscore or some banks have this facility on their mobile app, to be able to monitor any impacts on your credit score.
- If you do decide to switch your main account , make a note of all your direct debits, standing order and subscriptions so you know you’ve moved everything over. Use this as a chance to look for opportunities to get better deals or save on some regular outgoings too.
- Download the last few months of your bank statements before you close an account so that you have them if you need them.
- Don’t set up any regular payments from your old account during the seven-day switching period as they may not be moved over.
- If you are overdrawn or could be overdrawn when the switch takes place, then make sure you have spoken with your new bank first to make sure this can be facilitated.
- Whilst switching accounts shouldn’t affect your credit score if you are thinking of taking out a mortgage or loan in the near future don’t switch accounts too frequently as mortgage providers may take this into account, they don’t like to see too many accounts opened in a short space of time, and some providers may do a hard credit check when opening the current account.
