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Current account perks enhanced to entice customers

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Rachel Springall, Press Officer
Rachel Springall, Press Officer / Finance Expert 01603 476210 Email Rachel
03/10/2023

Current account perks enhanced to entice customers

Several current account switching perks have been launched in recent weeks, with as much as £200 in free cash available upfront. Moneyfactscompare.co.uk compares the latest deals to surface.

Current account perks enhanced to entice customers

Several current account switching perks have been launched in recent weeks, with as much as £200 in free cash available upfront. Moneyfactscompare.co.uk compares the latest deals to surface.

  • Several current account providers launched free cash offers of up to £200 upfront to entice new business, but these may not be around for long.
  • Two weeks ago, Nationwide Building Society launched a £200 free cash offer, Lloyds Bank launched a £175 free cash deal and TSB launched a £150 offer.
  • NatWest withdrew its £200 cashback three weeks ago and HSBC has not offered its £200 free cash incentive since the start of July.
  • first direct continues to offer a £175 cashback deal which was launched over a year ago.
  • Starling Bank now offers an attractive 3.25% AER credit interest, on balances up to £5,000, effective from 1 October.
  • Several providers offer cashback perks on spending, such as Chase, Halifax, Lloyds Bank, Santander, The Co-operative Bank and Virgin Money.

 

  • Several current account providers launched free cash offers of up to £200 upfront to entice new business, but these may not be around for long.
  • Two weeks ago, Nationwide Building Society launched a £200 free cash offer, Lloyds Bank launched a £175 free cash deal and TSB launched a £150 offer.
  • NatWest withdrew its £200 cashback three weeks ago and HSBC has not offered its £200 free cash incentive since the start of July.
  • first direct continues to offer a £175 cashback deal which was launched over a year ago.
  • Starling Bank now offers an attractive 3.25% AER credit interest, on balances up to £5,000, effective from 1 October.
  • Several providers offer cashback perks on spending, such as Chase, Halifax, Lloyds Bank, Santander, The Co-operative Bank and Virgin Money.

 

Selection of accounts

Selection of accounts

Account

Cashback

Benefits

Cost to borrow £500 for 7 days

High interest

Nationwide - FlexDirect*

£200 for accounts switched when at least two direct debits are switched using the CASS

5.00% AER (4.89% gross a year) credit interest fixed for 12 months on balances up to £1,500; thereafter 1% AER (0.99% gross a year) variable

£3.26 (39.9% EAR)

Spend and save

Santander Edge Up current account**

1% cashback on debit card spends at transport and grocery merchants (capped at £15 per month) and 1% on selected household bills (up to £15 per month)

3.50% AER (3.45% gross) credit interest on balances up to £25,000, access to Santander Boosts to receive cashback, vouchers, offers and prize draws from selected retailers.

£3.27 (39.94% EAR)

Overdraft usage

Starling Bank Current Account

None

3.25% AER credit interest on balances up to £5,000. No fees overseas for card usage

£1.35 (15.0% EAR)

*Min £1,000 per month funding. **£5 monthly fee, £1,500 per month funding. Customer must be signed up to online and mobile banking to qualify for Santander Boosts. Source: Moneyfactscompare.co.uk

 

Switching cash incentive selection

Provider

Account

Switching incentive

Eligibility

first direct

1st Account

£175

Switch using CASS, must credit £1,000 within three months.

Lloyds Bank

Club Lloyds

£175

Switch using CASS by 14.11.23, must credit £1,500 and log into online or mobile banking.

Nationwide

FlexDirect

£200

Switch using CASS, when at least two direct debits are switched.

TSB

Spend & Save

£150

Switch using CASS, log into the mobile banking app, have a minimum of two direct debits and make one debit card transaction by 31.10.23. Once the switch has been completed, make 20 or more debit card payments each month and receive up to £60 cashback in the first six months.

Source: Moneyfactscompare.co.uk

 

Selection of accounts

Selection of accounts

Account

Cashback

Benefits

Cost to borrow £500 for 7 days

High interest

Nationwide - FlexDirect*

£200 for accounts switched when at least two direct debits are switched using the CASS

5.00% AER (4.89% gross a year) credit interest fixed for 12 months on balances up to £1,500; thereafter 1% AER (0.99% gross a year) variable

£3.26 (39.9% EAR)

Spend and save

Santander Edge Up current account**

1% cashback on debit card spends at transport and grocery merchants (capped at £15 per month) and 1% on selected household bills (up to £15 per month)

3.50% AER (3.45% gross) credit interest on balances up to £25,000, access to Santander Boosts to receive cashback, vouchers, offers and prize draws from selected retailers.

£3.27 (39.94% EAR)

Overdraft usage

Starling Bank Current Account

None

3.25% AER credit interest on balances up to £5,000. No fees overseas for card usage

£1.35 (15.0% EAR)

*Min £1,000 per month funding. **£5 monthly fee, £1,500 per month funding. Customer must be signed up to online and mobile banking to qualify for Santander Boosts. Source: Moneyfactscompare.co.uk

 

Switching cash incentive selection

Provider

Account

Switching incentive

Eligibility

first direct

1st Account

£175

Switch using CASS, must credit £1,000 within three months.

Lloyds Bank

Club Lloyds

£175

Switch using CASS by 14.11.23, must credit £1,500 and log into online or mobile banking.

Nationwide

FlexDirect

£200

Switch using CASS, when at least two direct debits are switched.

TSB

Spend & Save

£150

Switch using CASS, log into the mobile banking app, have a minimum of two direct debits and make one debit card transaction by 31.10.23. Once the switch has been completed, make 20 or more debit card payments each month and receive up to £60 cashback in the first six months.

Source: Moneyfactscompare.co.uk

 

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

“Current account providers have launched some enticing perks for customers looking for a new bank account, with some free cash of up to £200 on offer upfront. Consumers who switch using the Current Account Switch Service (CASS) have a variety of free cash perks to choose from, but there are alternative accounts offering some attractive benefits elsewhere, such as cashback on spending, high credit interest or a competitive overdraft tariff. The right current account does depend on someone’s individual circumstances, so it’s important consumers are not swayed by free cash alone, albeit tempting in the run-up to the festive season.

“Nationwide currently offers the highest in-credit interest rate of 5.00% AER on its FlexDirect account, but is also offering the highest upfront free cash switching offer of £200. Customers will need to make a note that the credit interest rate will fall after 12 months to 1% AER, and they will need to meet the set terms and conditions to receive the cashback. A challenger in the market upped its in-credit this week; Starling Bank now offers 3.25% AER on balances up to £5,000, it has a competitive overdraft tariff and may suit consumers who want a simple fuss-free current account.

“Those looking to maximise the interest and cashback they earn could look towards Santander, which does not currently offer a switching cash perk, but customers who put £1,500 per month into their Edge Up current account can earn 3.50% AER interest on balances up to £25,000. The account also provides some enticing perks, such as cashback on selected spending and bills, but it is worth noting they will need to pay a £5 per month fee. Further enhancing the account’s appeal is the option to sign up to Santander Boosts.

“The past few weeks have been a popular time for current account providers to enhance their offers, as customers may be looking at ways to maximise their budget in preparation for the festive season. The cost of living crisis continues and a free cash boost could make a big difference, but it’s vital customers pick the right current account that suits their everyday needs. Customers could consider opening more than one account to suit different needs too, they just need to make sure they meet any eligibility criteria to earn any perks.”

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

“Current account providers have launched some enticing perks for customers looking for a new bank account, with some free cash of up to £200 on offer upfront. Consumers who switch using the Current Account Switch Service (CASS) have a variety of free cash perks to choose from, but there are alternative accounts offering some attractive benefits elsewhere, such as cashback on spending, high credit interest or a competitive overdraft tariff. The right current account does depend on someone’s individual circumstances, so it’s important consumers are not swayed by free cash alone, albeit tempting in the run-up to the festive season.

“Nationwide currently offers the highest in-credit interest rate of 5.00% AER on its FlexDirect account, but is also offering the highest upfront free cash switching offer of £200. Customers will need to make a note that the credit interest rate will fall after 12 months to 1% AER, and they will need to meet the set terms and conditions to receive the cashback. A challenger in the market upped its in-credit this week; Starling Bank now offers 3.25% AER on balances up to £5,000, it has a competitive overdraft tariff and may suit consumers who want a simple fuss-free current account.

“Those looking to maximise the interest and cashback they earn could look towards Santander, which does not currently offer a switching cash perk, but customers who put £1,500 per month into their Edge Up current account can earn 3.50% AER interest on balances up to £25,000. The account also provides some enticing perks, such as cashback on selected spending and bills, but it is worth noting they will need to pay a £5 per month fee. Further enhancing the account’s appeal is the option to sign up to Santander Boosts.

“The past few weeks have been a popular time for current account providers to enhance their offers, as customers may be looking at ways to maximise their budget in preparation for the festive season. The cost of living crisis continues and a free cash boost could make a big difference, but it’s vital customers pick the right current account that suits their everyday needs. Customers could consider opening more than one account to suit different needs too, they just need to make sure they meet any eligibility criteria to earn any perks.”

Notes to editors

Pioneering financial comparison technology for over 35 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfactscompare.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

Notes to editors

Pioneering financial comparison technology for over 35 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfactscompare.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

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Rachel Springall Press Officer / Finance Expert
Caitlyn Eastell Apprentice Press & PR Assistant