The financial start of 2026 brings a fresh opportunity for consumers to reassess their banking choices. As highlighted by Money Saving Expert, founded by Martin Lewis, Santander, First Direct and Nationwide are offering substantial perks to those willing to switch current accounts. These incentives are part of broader efforts by banks to strengthen customer acquisition during a competitive period for the industry.
January is often regarded as a timely moment for financial housekeeping, especially after the Christmas period and ahead of a new tax year. With rising costs still impacting many households, the prospect of up to £200 in free cash and favourable interest rates may be particularly appealing.
Santander Tops the Table with £200 Plus Cashback and Savings Perks
Santander is currently offering the most generous switching incentive among the three banks, providing £200 to new customers who switch to its Edge account. According to Money Saving Expert, the account also includes one percent cashback on selected household bills paid via Direct Debit and access to a six percent easy-access Edge Saver account.
The Edge account requires a monthly fee of £3 and a one-time deposit of £1,500 to qualify for the switching bonus, which is typically met through a salary payment. To benefit from both the cashback and the savings interest, account holders must deposit a minimum of £500 each month and set up at least two Direct Debits.
The six percent savings rate applies to balances up to £4,000 during the first year, which could yield roughly £240 in annual interest if maintained at the full threshold. As noted by Money Saving Expert, these combined features make the Santander deal one of the most valuable currently available to UK customers seeking new banking arrangements.
First Direct and Nationwide Offer Strong Alternatives for Eligible Customers
While Santander leads in cash incentives, both First Direct and Nationwide have structured offers that may suit different customer profiles. First Direct is offering £175 for switching to its 1st Account, along with a £250 interest-free overdraft and access to a regular saver account offering seven percent interest.
Eligibility for the First Direct offer is limited to those who have not previously held any of its products, and who have not opened an HSBC current account since January 2018. Applicants must also deposit at least £1,000 monthly, set up two Direct Debits, and complete five debit card transactions within 45 days. According to Money Saving Expert, the bonus is paid by the 20th of the following month once all criteria have been fulfilled.
Meanwhile, Nationwide is offering a similar £175 cash reward for customers switching to its FlexDirect account. The account includes a £50 interest-free overdraft and access to a 6.5 percent regular saver. To qualify, users must deposit £1,500 per month and set up two Direct Debits within 28 days. The incentive is typically paid within 10 days after meeting all requirements, according to the same source.
All three offers must be completed through the Current Account Switch Service (CASS), which ensures that all incoming and outgoing payments are transferred seamlessly to the new account, usually within seven working days. For those looking to take advantage of these deals, reviewing the terms and confirming eligibility is essential. As the offers can change or end with little notice, early action may be beneficial.
