Several major banks are currently offering customers free payments of up to £885 as part of a drive to attract new customers in the face of increased competition. Nationwide, Lloyds, Santander and others have launched a series of tempting financial incentives for new members.
In addition to these money offers, customers opting for the Virgin Money M Plus account could benefit from a bonus fixed interest rate of 10.47% on top of its standard variable interest rate of 2.02%. This can save up to £1,000, which could be worth around £120 if the full amount is kept in the account for a year.
The interest bonus is available for a full year, from 1 July 2024 to 30 June 2025. To benefit, new customers must switch to an M Account, M Plus Account or Club M Account by 31 May and transfer two direct debits by 26 June. Interest payments will be made between 1 July 2024 and 30 June 2025.
Detailed Offers from the Main Banks
Here are the detailed offers from some of the main banks, which offer substantial incentives to new customers:
Nationwide – £200
Nationwide is offering a £200 switching bonus to existing customers who have a mortgage, ISA or are looking to change their account type.
To benefit from this offer, customers must:
- Have been a Nationwide customer by 31 March.
- Have made a full transfer to a Nationwide current account using the bank's transfer service.
- Have at least two active direct debits on their Nationwide account.
The change must be made within 28 days of opening the account via the Nationwide website or mobile banking app.
First Direct – £175
First Direct is offering a transfer bonus of £175. To qualify, new customers must:
- Transfer a balance of £1,000 into the account.
- Transfer at least two regular payments and use the debit card at least five times within 30 days of opening the account.
The bonus will be paid by the 20th of the following month. Eligibility excludes those who have previously held a First Direct product or opened an HSBC current account on or after 1 January 2018.
Lloyds – £175
Lloyds has reintroduced its £175 switching offer, which was withdrawn in February. The offer is available from 28 May for customers switching from a Lloyds Club current account.
In order to take advantage of the offer, customers must open a Lloyds Club account (£3 monthly fee), a Lloyds Club Silver account (£13 monthly fee) or a Lloyds Club Platinum account (£24 monthly fee) and have at least three active direct debits on the old account, excluding standing orders and recurring card payments. The change must be made before 30 July.
Santander – £175
Santander is offering a switching bonus of £175 to those who switch to one of three accounts: the Santander Edge, Edge Up or Private current account.
To claim the bonus, customers must:
- Apply to the current account switching service online, by phone or in branch.
- Set up two active direct debits and deposits at least £1,500 within the first 60 days.
The old account will be closed and balances and direct debits will be automatically transferred to the new account.
TSB – £160
TSB has launched a new Switch Bank offer, which can potentially add up to £160 to new customers' bank accounts. The deal consists of £100 for switching, plus £60-£90 cashback in the first year, and a choice of one of three rewards.
In addition, This offer is available to customers switching from a TSB Spend & Save or Spend & Save Plus current account. The change must be made using the current account switching service from 23 May 2024 and before the offer is withdrawn.
These offers are an excellent opportunity for customers to benefit from financial advantages while switching to a potentially more suitable banking service.
However, it is advisable to check all the conditions and act quickly, as these they may be time-limited.