Fancy up to £500 of “free” cash – or how about a complimentary eco-friendly electric toothbrush? Many of Britain’s banks are offering sizeable “welcome bonuses” and other freebies in an attempt to convince people to switch to their current accounts.
This week the battle was turned up a notch. Santander is offering £240, while NatWest is hoping to tempt high-earners to defect by dangling the carrot of £500.
Several other banks are also offering cash bonuses, though digital bank Starling has taken a different tack. Eligible customers who open one of its personal current accounts before 11 October will be emailed a voucher code and instructions for how to claim a Suri Pro 2.0 electric toothbrush and UV clean-and-charge case “worth £105”. This “sustainable” toothbrush was awarded four out of five stars by the Guardian.
Alternatively, the “free money” offered by many banks could provide a welcome boost during the cost of living crisis. But some of these deals come with quite a lot of strings attached.
Take Santander’s new offer. You can now get £240 when you switch to its Everyday current account, which has no monthly fee. However, to be eligible, customers need to pay at least £1,500 into the account and set up at least two household direct debits, plus open and pay at least £200 into a Santander Regular Saver (which now pays a headline 8% interest), among other requirements.
Meanwhile, HSBC is offering £220 when you switch. You must open the new account using its mobile banking app, set up at least two direct debits, pay in at least £2,000 and spend at least £500 on your HSBC debit card.
HSBC’s First Direct brand is running its own offer, where you get £175 for switching to it. You have to set up at least two direct debits or standing orders, deposit £1,000-plus, make five or more debit card payments, and log on to digital banking.
Nationwide is also offering £175, with not dissimilar requirements relating to funding and using the new account.
The Co-operative Bank has a £200 offer, but it ends on Monday 7 September, so you will need to move fast. New customers switching to its standard current account, or Everyday Extra account (the latter carries a £12 monthly fee) can get £125 upfront, plus £25 a month for three months when they actively use the account.
Again, there are requirements relating to how much you must pay in and how you use the account.
As of this week, NatWest is rewarding people who switch to its Premier Select or Premier Reward account (the latter has a £2 monthly fee) with a £500 “welcome bonus”. To be eligible, you must meet one of three criteria: at least £100,000 income (or £120,000 joint income) needs to be paid into your new account, or you have to hold at least £100,000 savings or investments with the bank, or have a mortgage of at least £500,000 with it. (There are other requirements, too.)
The NatWest offer is very similar to one that HSBC has been running that also offers high earners a £500 welcome bonus if they switch to its Premier account.
With these offers, to get the free cash or freebie, you usually have to fully switch an existing current account from another provider using the industry’s current account switch service (Cass).
Rachel Springall, at the website Moneyfactscompare.co.uk, says Cass is quick and easy: “The service moves over any balance, and redirects standing orders and direct debits to the new account.”
She says current account switching offers come and go throughout the year and can be pulled with not much notice, but adds that customers must not feel rushed. “There is no real ‘one-size-fits-all’ current account, as many are tailored for different needs.”
If you sign up for a packaged current account – typically they offer various perks and add-ons in return for a monthly fee – you need to keep a close eye on it to make sure it is still good value; otherwise you can end up wasting your cash on the fee, says Springall.
