Bank customers are being encouraged to see if they can secure a better deal by switching accounts, with incentives of up to £200 in free cash on offer for those who transfer their funds. A number of banks have introduced enticing switch offers, rewarding new customers with a sum of money or other benefits for choosing their services.
Santander is the latest bank to introduce such an offer, presenting new clients with £150 for moving to eligible current accounts. Lloyds Bank is offering a similar incentive of £200, while other financial institutions are also providing free cash bonuses, including NatWest with £180 and Nationwide with £175.
To claim these rewards, customers typically need to use the Current Account Switch Service, and the organisation is advising savers to shop around if they could gain from making a switch. John Dentry, product owner of the Current Account Switch Service at Pay.UK, commented: “Reviewing your bank account is one thing we recommend doing to ensure you’re with a provider whose services suit your individual needs and goals.
“If you feel you need something different from your current account, it pays to consider switching.” Mr Dentry highlighted some of the appealing features offered by banks, noting: “The right bank account is a key component of managing your finances.
“Some providers offer tools, trackers and savings settings to help with individual financial goals, while others offer varying perks such as cashback from select retailers and energy providers which can help keep budgets on track.”
Amy Knight, a personal finance expert at NerdWallet UK, said there could be more switching offers coming out. She elucidated: “Spending announced in the Labour Budget could force the Bank of England to lower interest rates more cautiously to stay on top of inflation.
“Higher rates dampen the demand for borrowing and with fewer people shopping around for loans, we may well see banks using cash bonuses to draw in new customers, increasing deposits instead.” Nonetheless, she offered a cautionary note to savers about possible fees tied to additional bank services.
She pointed to the example of the Monzo Perks account which provides customers with weekly freebies from Greggs plus an annual railcard and other discounts, but with a monthly cost of £7. Ms Knight advised: “For some customers, the perks will be well worth the monthly fee and could add up to genuine savings.
“However, it’s important to take time to digest the details to work out whether a monthly charge falls within your budget and whether you will personally get value for money.”