Current account perks enhanced to entice customers – Moneyfacts

October 3, 2023

Several current account switching perks have been launched in recent weeks, with as much as £200 in free cash available upfront. Moneyfactscompare.co.uk compares the latest deals to surface.

Several current account providers launched free cash offers of up to £200 upfront to entice new business, but these may not be around for long.
Two weeks ago, Nationwide Building Society launched a £200 free cash offer, Lloyds Bank launched a £175 free cash deal and TSB launched a £150 offer.
NatWest withdrew its £200 cashback three weeks ago and HSBC has not offered its £200 free cash incentive since the start of July.
first direct continues to offer a £175 cashback deal which was launched over a year ago.
Starling Bank now offers an attractive 3.25% AER credit interest, on balances up to £5,000, effective from 1 October.
Several providers offer cashback perks on spending, such as Chase, Halifax, Lloyds Bank, Santander, The Co-operative Bank and Virgin Money.

Selection of accounts
Selection of accounts	Account	Cashback	Benefits	Cost to borrow £500 for 7 days
High interest	Nationwide – FlexDirect*	£200 for accounts switched when at least two direct debits are switched using the CASS	5.00% AER (4.89% gross a year) credit interest fixed for 12 months on balances up to £1,500; thereafter 1% AER (0.99% gross a year) variable	£3.26 (39.9% EAR)
Spend and save	Santander Edge Up current account**	1% cashback on debit card spends at transport and grocery merchants (capped at £15 per month) and 1% on selected household bills (up to £15 per month)	3.50% AER (3.45% gross) credit interest on balances up to £25,000, access to Santander Boosts to receive cashback, vouchers, offers and prize draws from selected retailers.	£3.27 (39.94% EAR)
Overdraft usage	Starling Bank Current Account	None	3.25% AER credit interest on balances up to £5,000. No fees overseas for card usage	£1.35 (15.0% EAR)
Min £1,000 per month funding. *£5 monthly fee, £1,500 per month funding. Customer must be signed up to online and mobile banking to qualify for Santander Boosts. Source: Moneyfactscompare.co.uk

Switching cash incentive selection
Provider	Account	Switching incentive	Eligibility
first direct	1st Account	£175	Switch using CASS, must credit £1,000 within three months.
Lloyds Bank	Club Lloyds	£175	Switch using CASS by 14.11.23, must credit £1,500 and log into online or mobile banking.
Nationwide	FlexDirect	£200	Switch using CASS, when at least two direct debits are switched.
TSB	Spend & Save	£150	Switch using CASS, log into the mobile banking app, have a minimum of two direct debits and make one debit card transaction by 31.10.23. Once the switch has been completed, make 20 or more debit card payments each month and receive up to £60 cashback in the first six months.
Source: Moneyfactscompare.co.uk

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

“Current account providers have launched some enticing perks for customers looking for a new bank account, with some free cash of up to £200 on offer upfront. Consumers who switch using the Current Account Switch Service (CASS) have a variety of free cash perks to choose from, but there are alternative accounts offering some attractive benefits elsewhere, such as cashback on spending, high credit interest or a competitive overdraft tariff. 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 5.00% AER on its FlexDirect account, but is also offering the highest upfront free cash switching offer of £200. Customers will need to make a note that the credit interest rate will fall after 12 months to 1% AER, and they will need to meet the set terms and conditions to receive the cashback. A challenger in the market upped its in-credit this week; Starling Bank now offers 3.25% 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, which does not currently offer a switching cash perk, but customers who put £1,500 per month into their Edge Up current account can earn 3.50% AER interest on balances up to £25,000. 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.

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. 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.”