Another high street bank has joined the battle to attract new customers with a new cash switch offer.
Lloyds Bank is offering a market-topping £200 for anyone willing to move their money.
Current account switch bonuses are commonplace in the UK, with plenty of lenders bringing them in. By using the Current Account Switch Service (CASS) consumers can make the change for free and with ease, and it usually takes only a week or two after notifying your bank that you’re leaving and which bank you want to join.
Beyond the initial lure of free money, it’s useful for consumers to jump ship if their bank is not offering great interest rates on savings accounts, if they are unhappy with customer service or - as is more frequent recently - if local branches have been shut and they need more accessibility.
Lloyds is not the only bank offering such a deal. Co-op last week launched a £175 switch offer, with £100 up front and £25 a month for three months, making up the bonus. First Direct also offers a straight £175 after switching.
The new offer from Lloyds tops both of those when it hits the market on 16 September – as well as other perks being included. There are some strings attached, however, which those considering a switch need to be aware of.
These conditions are fairly standard across most banks and building societies when offered, such as needing active direct debits on your account, making a number of initial payments and using the aforementioned CASS service.
Lloyds stipulate you need at least three active direct debits on your account, while you must open one of a handful of specific new current accounts: a Club Lloyds Account, Club Lloyds Platinum Account, Club Lloyds Silver Account or a Lloyds Premier Account. These do come with fees, starting from £5 a month for the Club Lloyds version – which Lloyds say is refunded each month that you pay in £2,000 or more.
You also can’t get the £200 bonus if you’ve already received one since April 2020 when joining Lloyds, Halifax or Bank of Scotland.
Other perks include a choice of a Disney Plus subscription, cinema tickets or other gifts, as well as access to a 6.25 per cent interest rate savings account.
Customers looking to switch bank or building society should consider which elements of banking suit them most beyond the free cash bonus, such as ease of use on app, other services you use with your current provider or savings accounts to suit their lifestyle.
