The best bank account switching offers can bag you as much as £200 for moving your current account to another provider.
Banks and building societies want your business, especially as they are all competing with each other. To entice you through their doors, they will often offer cash or voucher perks if you move your current account over to them.
The top switching deals on offer right now:
- Natwest and RBS | Get £200, 6.17% on regular saver and earn cashback
- First Direct 1st Account | £175 switching bonus, 7% regular saver. Rated best major bank for service
Although you should never move accounts just for the free money, if a new current account suits your needs better, then switching makes sense. It could be because you want a linked savings account or better customer service. You might even consider switching if your bank is closing branches near you, or if it reduces opening hours.
If you switch, it's likely you'll have to close your existing account to be eligible for the switching bonus. It’s also important you are clear on all the terms and conditions before you switch, so always read the small print before you start the switching process.
Best bank account switching offers
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Switching bank accounts takes just seven working days, and all your direct debits and standing orders are automatically moved. I've done it myself several times.
Adam French, Personal Finance writer
1. Natwest and RBS, £200 to switch
- Eligibility: You cannot already hold either of the reward accounts and you won't be eligible for this offer if you have received a switching incentive from NatWest, Royal Bank of Scotland and/or Ulster Bank between 1 October 2017 and 13 February 2023. You must be a UK resident and over the age of 18 years.
- Minimum pay-in: You must pay in £1,250 each calendar month (and within 60 days of opening the account).
- Mobile banking: you must log in to the RBS or NatWest banking app within 60 days of opening the account
- Arranged overdraft: 39.49% EAR variable (Subject to availability)
- Unarranged overdraft: 39.49% EAR variable on a maximum of £19.40 per month (Subject to availability)
- Plus, you can open a linked Natwest regular saver offering 6.17% where you can save up to £150 per month and a maximum of £5,000 in the account. Balances of more than £5,000 receive the rate 0.65%.
- Perks include £5 cashback per month (up to £36 cashback per year) if you set up at least two direct debits (the Direct Debits need to be at least £2 each), and with one mobile login per month you can earn £1. If you spend in retailers or shops like Cafe Nero, Boux Avenue and EuropCar, you can earn a further 1%. You can choose if you want your reward money as cashback or gift cards.
- Like many offers of this type, it could be withdrawn or changed at any time.
2. FIRST DIRECT
- Eligibility: Be a new customer (This offer is only available to new First Direct customers, or HSBC customers who haven't opened an account since 1 January 2020)
- Minimum pay-in: Pay in at least £1,000 within three months of opening the account.
- Arranged overdraft: First Direct offers a £250 interest-free overdraft.
- Plus, to get the headline 7% regular saver interest rate you will need to set up a standing order from your First Direct account to pay between £25 and £300 into it each month for 12 months. The maximum you can save in a year is £3,600 per year.
- First Direct has consistently scored best of the major banks for service, with the most recent YouGov survey commissioned by Competition and Markets Authority rating it top three for customer service.
How to switch bank accounts
It's easy to move bank accounts, but we strongly recommend you check that the bank you’re switching to is using the Current Account Switch Service, which will make the transition even simpler.
It will switch all of your payments including your salary, standing orders and direct debits as well as close your old bank account.
The Current Account Switch Service is a trusted body which covers 99% of the UK’s current accounts. To find out if your bank uses this service, check to see if you can see their logo:
Follow these steps to switch bank accounts:
- Check the bank you want to switch to uses The Current Account Switch Service. Note, you can’t switch with ISAs, saving accounts or non-sterling payment accounts.
- Take into consideration what works best for you and choose an account that caters best for your needs. You can find a great guide to follow on our sister publication GoCompare.
- Look into the criteria to switch to your chosen account and whether you qualify. This includes minimum pay-in within a certain time period and minimum direct debits.
- It’s time to pick your switch date. This takes up to seven working days, so it’s best you don’t pick a weekend or bank holiday.
- Finally, let your new bank know you want to switch and they can start the process. Let them know of any overdraft you want to move over (this is determined on an individual basis). Your bank will also get you to agree to the Current Account Switch Agreement and the Current Account Closure Instruction before the switch starts.
The Current Account Switch Guarantee means your bank must cover you in the unlikely event of anything going wrong and it ensures you’re not left out of pocket.
French adds "The current account switching guarantee takes away most of the hassle as all your regular payments follow you to your new account. The only real annoyance is having to update your card details with online retailers on your next shopping spree”.
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