Switching your current account can get you some “free money” that you can use to boost your savings.
Some big names have offers aimed at encouraging people to defect to them. As well as a cash payment, they are also offering access to their best-paying savings accounts.
However, you need to read the small print: they have different requirements about things such as how much you must pay in, and some are paid-for accounts. Be careful so you do not end up signing up for something that will cost you more than you gain.
NatWest
The bank is offering £175 to new customers who switch their main current account to it. You can open a Select or Reward account – the former is NatWest’s “basic everyday bank account” with no monthly fee, while the latter lets you get money back on your everyday spend but has a monthly fee of £2. Having a NatWest bank account gives you access to a regular savings account paying up to 5.5%.
Nationwide
Britain’s biggest building society will pay you £175 if you switch to one of its three main current accounts. Two of these – FlexAccount and FlexDirect – do not have a monthly fee. Having a current account with the society means you get access to the Flex Regular Saver, which pays up to 6.5% in interest.
Lloyds
There is a market-leading £200 for people who switch to one of its Club Lloyds accounts or a Lloyds Premier account. The basic Club Lloyds account has a £5 monthly fee but this is refunded each month you pay in £2,000 or more. (The bank’s Classic account, with no monthly fee for anyone, is not included in the switch offer.) You get access to the Club Lloyds Monthly Saver account paying 6.25%.
First Direct
The branchless bank, which is owned by HSBC, is offering £175 to those who switch to its 1st Account. You get access to a regular savings account paying 7% a year. If you can afford to put away the maximum of £300 a month for the year you will earn about £136.50 in interest.
Co-operative Bank
The bank, which boasts a “unique customer-led ethical policy”, will give you £100 for switching to its standard current account. You get an extra £25 a month for up to three months if you actively use the account – so that’s a total of up to £175 up for grabs. Having a current account with the bank gives you access to a regular savings account paying 7% annual interest on deposits between £1 and £250 a month.
In all cases you have to fully switch an existing current account from another provider using the industry’s Current Account Switch Service. To do this you need to choose your new bank and apply then ask it to organise the transfer.
