Some of the biggest high-street banks are eager for people to ditch their existing current accounts and switch to their offerings – with the promise of cash bonuses of up to £175 in return.

NatWest has joined First Direct, Lloyds and Nationwide in promising healthy one-off payments for new accounts.

However, time is running out to take advantage of some of the deals, with a couple of them expiring at the end of this month.

It is the latest round of campaigning for custom from banks and other current account providers, which were last year offering up to £200 for people to move, according to Rachel Springall at Moneyfacts.

“Switching incentives come and go, so they are never a guarantee for consumers,” she says. “It all comes down to the business appetite of current account providers and the time of year.”

But many worry that moving from one account to another can take time and effort. So what is on offer and is it worth it?

NatWest
The high-street lender is the latest bank to offer a healthy sum to attract people to switch.

Customers will get £150 within 30 days of fully switching to the bank’s Reward account. This charges a £2 monthly fee but promises that customers can “earn” the money back by using direct debits and the mobile app.

Anyone who opens an account must lodge £1,250 within 60 days. Within a month of that, the £150 will be paid. “Rewards” of £4 a month are offered if customers have two direct debits of £2 or more. Another £1 a month is given for logging into the mobile app. If you get these rewards, you can offset the cost of the account and earn another £36 a year.

Anyone who has previously got a switching payment from the NatWest group is ineligible, as are those who want to switch from Royal Bank of Scotland or from Ulster Bank.

The offer’s expiry date is not clear, as the bank says it “could be withdrawn at any time”.

First Direct
Signing up to First Direct’s 1st account can net you a £175 payment.

The bank does not charge fees for debit card spending or ATM cash withdrawals outside the UK (although you may still have to pay other fees, such as to overseas card machine operators). There is also an interest-free overdraft of up to £250. Anything over that is charged at 39.9%.

Anyone who switches needs to move at least two direct debits or standing orders and deposit £1,000 within 45 days, as well as make five debit card transactions and log on to digital banking. After that, they will get their welcome bonus.

The offer is only open to people who have never previously had a First Direct account. Anyone who has opened an HSBC current account since January 2018 cannot apply.

Lloyds
People switching to a new Club Lloyds account can get a £175 payment. The deal applies to the Club Lloyds account (which has a £3 monthly fee), the Club Lloyds Silver account (£11.50 a month plus the £3 fee) and the Club Lloyds Platinum account (£22.50 a month plus the £3 fee). The £3 fee on each account is refunded if a customer pays in £2,000 or more a month.

You must switch three or more direct debits. Those who have received a payment from a switching offer from Lloyds, Bank of Scotland or Halifax since April 2020 are not eligible, and the offer ends on 1 April.

Switchers to the Club Lloyds account can also choose a “lifestyle benefit”: these include a Disney+ subscription, six cinema tickets, a Coffee Club and Gourmet Society membership, or an annual magazine subscription.

Nationwide
Also finishing soon is Nationwide building society’s offer of £175 for switching to one of three current accounts. This offer lasts until 31 March.

New customers must transfer a minimum of two direct debits to the new account, plus pay in at least £1,000 and make one debit card payment within 31 days.

They can switch to the FlexDirect account, which has a 5% interest rate and offers 1% cashback on card purchases for 12 months, or to the FlexAccount, both of which have no monthly fee. Or they can choose the FlexPlus packaged account, which includes travel and mobile phone insurance, breakdown cover and commission-free use abroad, but carries an £18-a-month fee.

Should you do it?
James Daley at the consumer group Fairer Finance says potential customers must look beyond the headline payout and focus on what they will get over the course of the “relationship”, which could last for a number of years.

“Some accounts offer great value, with cashback or other rewards built into their offers,” he says. Others have great service but fewer bells and whistles.

“For example, Nationwide and First Direct are renowned for their service, but their core accounts are fairly vanilla.

“If you can afford Nationwide’s FlexPlus packaged account, and can make use of the insurances, then this is an account that can offer exceptional value. NatWest and Lloyds do not have quite the same level of customer happiness and trust, but they offer accounts with good rewards.”

Springall says there are hoops for new customers to jump through to get the bonus payments, so the perks are not always suitable for everyone.

“Consumers who spend more than they save would be wise to choose an account that rewards them for using their debit card, whereas savers should look for high interest rates or reward payments,” she says. “Those who might dip into their overdraft would be wise to consider an account that charges a competitive tariff or has an interest-free buffer.”

Find an ethical alternative

In these times of global crisis and the ongoing climate emergency it’s easy to feel overwhelmed about what we can do to make a difference. However, choosing an ethical home for your current account is one of the easiest ways to ensure your money is being used in an environmentally friendly or socially responsible way.

The ethical bank Triodos, whose customers include the naturalist and broadcaster Chris Packham, tends to top the best-buy tables in this area: it lends only to organisations making a positive impact for people and the planet. This means it says yes to renewable energy and social housing but no to fossil fuels and fast fashion.

Triodos offers a current account, though it carries a £3 monthly fee, which may put some people off. It can be operated online and via the app (there are no branches), and comes with a contactless Visa debit card made from recycled plastic. Triodos offers Apple Pay but not yet Google Wallet/Google Pay (it hopes that will come later this year). There are a few other things to know: for example, it doesn’t offer an overdraft, and you can’t pay cash into a Triodos current account.

The Co-operative Bank, which calls itself “the original ethical bank” and is known for its customer-led ethical policy, has been taken over by Coventry building society, so could have changes coming down the track.

Nationwide building society is another option. It’s a mutual organisation (owned by its members rather than shareholders) and gives 1% of its profits to good causes. It’ll also win points from some for what it calls its branch promise: it says that “everywhere we have a branch, we’ll still be there until at least the start of 2028”.
Rupert Jones