Looking for a new bank account? Many providers are enticing new customers by offering a cash incentive. We’ve rounded up the top picks here, including the latest offer from Nationwide.
Almost 1.4 million people moved their bank accounts in the last 12 months to October, according to the Current Account Switching service – a 55% increase on the previous year.
While the offers are tempting, it’s important to remember that when it comes to choosing the right bank account for you, it’s not all about the money.
In this article, we outline:
Read more: Five best current accounts
*This article may contain affiliate links that can earn us revenue
What are the top-paying bank switching offers currently available?
A number of banks have recently announced new switching bonuses, including Nationwide and Barclays.
For students, NatWest is paying £50 to new and existing customers plus a four-year Tastecard offering discounted meals, cinema tickets and shopping.
These cash incentives are often reserved for new customers only, so you need to check the eligibility criteria first. They are also time-limited too, so get your skates on for the best deals.
If you are looking for more from your current account, then check out our independently rated best current accounts.
While the upfront switching bonuses are tempting, you may make more from your account by choosing one that offers great cashback.
Read more: Best savings accounts in 2023
This offer is only available to new customers of first direct. To be eligible you also can’t have held a current account with HSBC on or after 1 January 2020.
To receive the bonus you need to pay a minimum of £1,000 into your new account within three months of opening it.
The account also offers a linked 7% AER (fixed) regular saver on up to £300 a month and fee-free overseas spending. You might also be eligible for its interest free overdraft limit of £250 (subject to status).
If you are someone that values great customer service then First Direct regularly tops the polls.
Offer ends: There is currently no end date for this offer, but First Direct can withdraw it at any time.
There are no limits on how many referrals that you can make.
To be eligible, the referred person can’t have held a Co-op Bank or Smile current account since 1 November 2022. Within the first 60 days, you needs to pay in a minimum of £800, set up at least two direct debits, register for online banking and use your debit card 5 or more times.
To get the bonus you need to fill in a referral form.
Offer ends: There is currently no end date for this offer, but Co-op can withdraw it at any time.
Bank accounts that offer the best ongoing rewards
While the upfront switching bonuses are tempting, you may make more from your account by choosing one that offers great cashback.
– 1% cashback on council tax, energy and water bills, phone bills, broadband and paid-for TV packages. Santander monthly mortgage payments are also included in this. You can earn up to £10 cashback per month on this tier.
– 1% cashback on most of your spending at supermarkets and on travel, for example petrol and train tickets. You can also earn up to £10 cashback per month on this tier.
If you have high energy or water bills, or you have a mortgage with Santander, it may be worth opting for the Santander 123 current account instead. This is because it pays a higher rate of cashback on these.
You can earn up to £204 in cashback over a year after you factor in the £3 monthly fee. To be eligible for cashback, you need to pay your bills by direct debit and you must pay in £1,000 into the account each month.
You can earn 1% cashback on purchases such as coffee, your weekly grocery shop or next holiday. You just need to activate cashback in the app to get started.
Choose to round up your spending to the nearest £1 and the bank will autosave the difference for you. You can also earn 5% AER (variable) interest on your round-up balance. After a year, Chase* automatically transfers your remaining round-up balance to your current account.
Chase* also has an easy-access savings account paying annual interest of 4.1% AER (variable).
From 24 April, the bank started paying 1% AER (variable) on money in a current account too.
If you are looking for a credit card that offers cashback or rewards when you spend then check out our top ratings.
Student switching offers
If you’re at university, we have ranked the best student bank accounts.
But here’s a quick snapshot of the student accounts with perks:
| Bank | Perk |
| HSBC | £100 cash bonus plus a year-long subscription to Headspace, a meditation and mindfulness app |
| Santander | A four-year young person’s railcard |
| Barclays | 12-month subscription to Perlego, an online textbook library |
| Natwest and RBS | £50 cash bonus plus a four-year Tastecard, which gives you discounts at many restaurants in the UK |
For more information about student finances generally, check out our article here.
Remember: choosing a bank account based only on free gifts may not be the best method.
People tend to change their bank account less often than their partner, so you might be better off heading for a bank with great customer service rather than a free gift.
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