BANKS are handing out free cash when you switch your bank account and you could get as much as £200.
Just two banks are offering big cash payments to new customers but there are also plenty of cashback offers and high interest rates for savers.
Banks are desperate for new customers with some even paying you to move
Plus new offers are being launched regularly as banks try to compete for customers, so keep your eyes peeled.
The new tax year is a great time to make the most of your money and switching accounts can be an easy win.
Remember to check all the terms and conditions and that the accounts works for you.
For example, some accounts require that you pay in a certain amount a month. Or if you require an overdraft, check the charges first.
Here’s a full list of offers available now and how to sign up.
NatWest and RBS
- £200 cash, up to £5 a month in rewards, 1% cashback on spending with partner retailers
Customers switching to the NatWest Reward or RBS Reward current account get £200 in cash and £4 a month so long as you pay out two or more direct debits for £2 or more.
You can earn an extra £1 each month you log in to the app.
You must switch from a different bank, deposit £1,250 into your account and log into the mobile banking app within 60 days.
You’ll get the £200 after seven days. The account charges a £2 a month fee.
NatWest, RBS and Ulster Bank also offer current accounts with no fee and you’ll still get the £200 cash, just not the cashback and rewards.
First Direct
- £175 cash, access to a savings account paying 7% and an interest-free £250 overdraft
Switch using the Current Account Switch Service, deposit £1,000 within three months to get £175 free cash.
You can only benefit from the offer if you’ve never had any sort of account, loan, mortgage or other First Direct product.
If you’ve opened a current account with HSBC on or after 1 January 2020, you also can’t apply.
New customers to first direct only, who have not previously held a first direct product.
The account offers access to a linked savings account paying 7% interest on the first £300 saved every month.
That is more than double the best easy access savings rate, currently on offer from Yorkshire Building Society which pays 3.6%.
Nationwide
- No free cash, earn 5% on your balance for the first 12 months, interest-free overdraft for 12 months
Nationwide’s FlexDirect account is online so you won’t be able to do your banking in a branch or over the phone, you’ll need to use the website or app.
If you have money in your account, the 5% interest rate is better than the best buy savings rate so well worth it.
It’s paid for the first 12 months on balances up to a maximum of £1,500.
If you’re eligible you’ll get an interest-free overdraft for the first year.
After that you’ll be charged interest at 39.9%.
If you’re quick you can earn 5% cashback up to £10 on supermarket shopping until April 30.
Santander
- No free cash, 1% cashback on household bills paid by direct debit and essential spening up to £10 a month
This account has a few catches – there’s £3 a month fee and you’ll have to pay in £500 at least every month.
You’ll also need a minimum of two direct debits set up on the account.
There’s exclusive access to a linked savings account that pays 4% interest.
Chase Bank
- No free cash, 1% cashback on all spending for a year
American bank Chase came to the UK relatively recently.
The generous 1% cashback on absolutely everything you spend on your debit card is designed to woo new current account customers.
If you open the current account you’ll automatically get access to a linked savings account paying 3.1%.
You can also set up a round-up rule in the app which is an easy way to start saving.
Every time you spend on your debit card, say to buy a pint for £3.59 the account will automatically round up to the nearest pound and put that 41p in a round-up pot paying 5% interest.
How to switch current account
By far the easiest way to switch banks is to use the Government’s Current Account Switching Service.
You’ll usually need to use this to qualify for a bank switching bonus.
After you choose an account, apply and ask your new bank or building society to switch your account using the service.
All your standing orders and direct debits will be transferred over and you can start using your new account in seven days.
Everything is handled by the banks so you don’t have to do anything.
You can still use your old account until the switch is completed.
