It used to be rare for people to switch bank accounts. The amount of time that the average person stayed with their bank could be measured in decades rather than years! Thanks to improved technology and new regulations, that has all changed, and switching bank accounts is now easier than ever. Savvy consumers can also take advantage of attractive current account switch offers offered by banks to tempt you to switch bank accounts to them.
Table of contents
Current Account Switch Offers – At A Glance
|Best Cash Offers|
|First Direct||£175 for new customers|
|Natwest||£200 in cash for switch to Natwest|
|Best Cashback Offers|
|Chase||1% on purchase for 12 months|
|Santander||1% on bills, supermarket, travel|
|Best Interest Offers|
|Barclays||5.12% on up to £5000|
|Nationwide||5% on up to £1500|
|Chase||4.1% on up to £500,000|
|Best Overdraft Offers|
|First Direct||Up to £250 at 0%|
|Nationwide||Up to £1500 at 0% for 1 year|
Best Bank Switch Offers – Cash Payments
Receive £175 into your newly opened current account when switching to a First Direct current account.
Users must pay £1000+ into their new account within 3 months of switching. Users must use CASS for the switch. First Direct current accounts are free for the first 6 months, then are charged at £10 per month.
Get £200 when switching your current account to Natwest.
Users must move their current account from another provider to Natwest, pay £1250 into the new account, and log in to the Natwest banking app within 60 days. They will then pay the £200 into your account within 7 days.
Best Current Account Switch Offers – Cashback
Get 1% cashback on all debit card purchases for 12 months.
The 1% is on most purchases, but there are some exceptions.
1% cashback on bills, grocery shopping and transport.
Users must use CASS to do the switch. Cashback is capped at £10 per month for the bills and £10 per month for the groceries/travel costs. Santander Edge has a £3 per month fee.
Best Bank Switch Offers – Interest
Earn 5% interest on up to £1500.
Users must pay in at least £1000 per month. After 12 months, interest rate drops to 0.25%. Interest is paid monthly.
Chase offer 4.1% interest on savings.
Users can earn 4.1% on savings balances up to £500,000. Interest is paid annually. To get a savings account, you need to set up a standard Chase current account.
Get 5.12% interest on savings.
Users must set up a Barclays current account, then join their Blue Rewards scheme. They then can open a Rainy Day Saver account, which pays 5.12% on up to £5000. To qualify for the Blue Rewards scheme, customers must pay in at least £800 to the current account monthly.
Best Current Account Switch Offers – Overdrafts
First Direct 1st Account
£250 overdraft at 0% interest.
Up to £250 at 0%, then 39.9% above £250. Subject to eligibility.
Interest free overdraft for 12 months.
Overdraft of £1500 available subject to availability. After 12 months, rate goes to 39.9%.
Switch Bank Accounts FAQ
What is the Current Account Switching Service ?
As you can see above, most of the current account switch offers above can only be accessed if you use the Current Account Switching Service (CASS). This is because it makes everything much easier, both for you and the bank.
Many people are concerned about switching bank accounts, thinking that it will mean a lot of time changing payment details, direct debits, standing orders etc. However, thanks to the CASS – that is all taken care of for you (as long as the bank you are with and the bank you are moving to are both signed up with CASS, however most are).
In addition, all banks signed up to CASS have to keep to the Current Account Switch Guarantee. This means you simply choose your new bank and the date you want to move, then the new bank will move everything for you.
Over 40 banks in the UK have signed up for CASS, which covers over 98% of UK customers.
Only licensed UK banks can sign up for CASS, so if your current account provider is not a licensed UK bank, but rather an e-money provider, then you will not be able to use the service. For example, Revolut, Monese, and Wise are not currently licensed UK banks.
Before you start your bank switch, check that the bank you are with and the bank that you wish to move to are part of CASS. Most UK banks are, and it will make the process significantly easier.
Will switching current account affect my credit rating?
Switching banks can affect your credit score, if you do it several times. However, if you do it once, or only rarely, then it should not be an issue. If you are tempted to keep on changing your account so you can pick up the cash and other bank switch offers, then make sure you consider if it is worth it before you do so, as multiple bank changes can reflect negatively on your credit score.
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