Current account perks improve to ‘entice’ customers – top bank switch and cashback deals | Personal Finance | Finance

Current account providers have launched a number of perks to attract and retain new customers, with some providing as much as £200 in free cash available upfront.

Describing the perks as “enticing”, Rachel Springall, finance expert at Moneyfactscompare.co.uk, said customers looking to switch accounts using the Current Account Switch Service (CASS) have a “variety of free cash perks to choose from”.

Meanwhile, there are alternative accounts offering “some attractive benefits” elsewhere, such as cashback on spending, high credit interest or a competitive overdraft tariff.

However, she noted: “The right current account does depend on someone’s individual circumstances, so it’s important consumers are not swayed by free cash alone, albeit tempting in the run-up to the festive season.”

Nationwide currently offers the highest in-credit interest rate of five percent AER on its FlexDirect account, as well as the highest upfront free cash switching offer of £200.

Customers will need to make a note that the credit interest rate will fall to one percent AER after 12 months and they will need to meet the set terms and conditions to receive the cashback.

Meanwhile, Ms Springall noted: “A challenger in the market upped its in-credit this week; Starling Bank now offers 3.25 percent AER on balances up to £5,000, it has a competitive overdraft tariff and may suit consumers who want a simple fuss-free current account.”

Those looking to maximise the interest and cashback they earn could look towards Santander. While Santander doesn’t currently offer a bank switch perk, customers who deposit £1,500 per month into their Edge Up current account can earn 3.5 percent AER interest on balances up to £25,000.

Ms Springall said: “The account also provides some enticing perks, such as cashback on selected spending and bills, but it is worth noting they will need to pay a £5 per month fee. Further enhancing the account’s appeal is the option to sign up to Santander Boosts.”

According to Ms Springall, the past few weeks have been a “popular time” for current account providers to enhance their offers, as customers may be looking at ways to maximise their budget in preparation for the festive season.

Ms Springall added: “The cost of living crisis continues and a free cash boost could make a big difference, but it’s vital customers pick the right current account that suits their everyday needs.

“Customers could consider opening more than one account to suit different needs too, they just need to make sure they meet any eligibility criteria to earn any perks.”

Bank switch deals available now

Online bank First Direct offers £175 to customers who switch to their 1st account using CASS. They must credit £1,000 within three months.

Lloyds Bank is offering £175 to customers who switch to its Club Lloyds account using CASS by November 14, 2023. They must credit £1,500 and log into online or mobile banking.

Nationwide is offering £200 to customers who switch to its FlexDirect account using CASS, when at least two direct debits are switched.

TSB is offering £150 to customers who switch its Spend & Save account using CASS. They must log into the mobile banking app, have a minimum of two direct debits and make one debit card transaction by October 31, 2023.

Once the switch has been completed, customers must make 20 or more debit card payments each month to receive up to £60 cashback in the first six months.

Current account cashback perks available now

Chase offers a one percent AER on its current account and a one percent cashback on everyday debit card spending for the first 12 months.

Halifax and Lloyds Bank offer up to 15 percent cashback on their current accounts, meanwhile, customers can earn cashback on selected household bills, supermarket and travel costs with Santander Edge Up.

Virgin Money is offering cashback on a range of accounts, including its M Plus Account, Club M Account, M Account, Current Account Control, Current Account Tracker, Private Current Account, as well as its Virgin Money and Virgin Atlantic Credit Cards.