The process of switching banks is relatively easy and fast nowadays compared to couple of years ago. The Current Account Switch Service is offering possibility for painless switching of current account from one bank to another. This ease of changing bank (among other things) has increased the possibility for banks to increase their customer base (or lose customers for that matter) because it is easy for bank clients to transfer their accounts between banks. This is beneficial for bank clients because the increased competition between banks for gaining new clients induced new bank switching offers and rewards. Stated differently, there are different bank switching offers aimed at motivating clients to change their bank. The bank switching offer cold come in couple of forms, which is even better because you (as a bank client) have even more options to choose from when taking your business to other bank.
Before any listing of bank offers is made, keep in mind that the desire to change banks should be based primarily on the reason for your dissatisfaction with your bank, and not whether other banks are giving cash just to attract you as a client. Before changing your bank you should always make comparisons (between your old bank and the desired new bank) of the products you are using. Do not change banks simply because you can gain some kind of offer. The offer means a sh.t to you if the new bank has much higher fees, or higher interest rates, inadequate customer service, etc., in the long run you are the one who is losing money. Read another post about the things to consider before switching bank.
If you are entirely sure that you want to change you bank, then why not enjoy the benefits offered by other banks when switching your current account with them. One more thing, you should always wait for the adequate period, make money on timing. In some banks the offers and incentives are not active all year round, they could serve as a promotional campaign in specific period (before holiday season, before Christmas, etc.).
So what could be the bank switching offer made by some UK banks?
When looking at the offers made by some of the banks in UK, it should be noted that these offers are subject to change and can be changed. For this reason, you should not take them for granted, always ask and be sure about the offer at the time when you plan to switch to another bank. Make sure you understand and you are aware about the terms and services, always read the fine print.
HSBC for instance is offering £120 if you chose to open your current account with them. In order to get the cash reward you need to open either new HSBC premier bank account, HSBC advanced bank account or HSBC bank account, and you switch in a 30 day time period after opening the account.
Unlike HSBC, if you decide to use Barclays as your new bank, although you do not have a direct switch offer, you could get rewards on different things. They claim that these rewards could have value of up to £180 per year (paid monthly) if you meet the conditions accordingly. When selecting Barclays as your new financial institution you could be entitled to:
- Loyalty reward bringing in £84 per year;
- In case of having a residential mortgage with them you could be making additional £60 per year;
- Home and contents insurance with them could make you another £36
Other benefits you could benefit from is the possibility to earn cash back with large number of retailers for bookings, online shopping, etc.
Halifax has a mix of bank switching offers. Namely they will reward you with a £125 if you complete the switching process. They also offer a cash back possibilities.
Nationwide has an interesting offer for you if you decide to open an account with them. The interesting point is not the £100 cash they will pay out to you. Instead, the interesting thing is that will pay you additional £100 if you make a successful referral. Meaning that for each new client you recommend to Nationwide, they will give you a £100 reward.
Yorkshire bank for instance has a bank switching offer of a £150. In order to qualify for the reward you should finish the switching process including a 2 direct debits in a period of 31 days after signing the agreement. In addition, you should also pay in a minimum of £1000 in the 31 days period after switching and additional £1000 within the next 31 days.
Switching to Lloyd’s Bank will give you the possibility to earn 15% cash back on everyday offers, and also you could benefit from monthly credit interest depending on your balance. In addition, their bank switching offer, also includes a so-called lifestyle benefit entailing you with the opportunity to choose between a cinema tickets, magazine subscription or a gourmet society membership.
First draft bank switching offer includes a £100 when switching with them, plus you could get a £250 interest free overdraft. You get the cash reward if you pay in £1000 within three months of account opening.
Switching your current account with M&S current account could potentially bring in a £220 gift card. The catch is that you will receive £100 when you switch and you could make additional £120 if you stay. In addition, you could be banking monthly fee free.
By now it should be obvious that bank switching offer could be in the form of cash reward, cash back possibility, interest free overdraft, fee free transaction etc. Also, it should be obvious that these rewards could be a one time reward, or you could enjoy a long-term reward (for instance: fee free transaction or cash back). Which offer is more attractive depends entirely on you and your preferences, what is good for one person could not be perceived as high value for other person.