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.”