Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:
“Current account providers have launched some lucrative free cash offers for switchers to kick off 2026. The latest offer from TSB should not go unnoticed, as not only will it pay £150 in cash, but the account will reward a further £50 by the end of May if customers meet specific requirements. Those who want to be rewarded each time they spend could get £5 per month for six months with the Spend & Save account, but if they upgrade to Spend & Save Plus, it will pay the reward for longer, plus the account will not charge any fees for transactions abroad.
“It’s quick and easy to switch using the Current Account Switch Service (CASS), and there are a variety of free cash perks to choose from. The accounts are all very different, some pay credit interest, others reward customers each time they spend on bills, and some are simpler and carry a competitive overdraft tariff. The right current account does depend on someone’s individual circumstances, so it is important consumers are not swayed by free cash alone.
“Customers who want to chase down a competitive rate of interest will find Nationwide currently offers the highest in-credit interest rate of 5.00% AER on its FlexDirect account, plus it is paying £175 for switchers right now. 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. Those looking for a fuss-free current account will find Kroo Bank Ltd offering 2.65% AER on balances up to £500,000.
“Another high street brand with a new switching offer is Lloyds Bank where customers can pocket £250 by moving to one of the Club Lloyds accounts, but the offer ends in a couple of weeks, on 3 February. The suite of current accounts from Lloyds Bank are tailored for varying needs, but the Club Lloyds is seen as its most affordable option for those who want some additional benefits. There is a £5 monthly fee to pay, but this is waived when customers fund the account with £2,000 per month. Account holders can pick either a 12-month Disney+ subscription, cinema tickets, a magazine subscription, a Gourmet Society membership or digital movie rentals. Those who opt for either the Silver, Platinum (both with Club Lloyds added on), or the Lloyds Premier, will charge a fee, but the array of benefits might appeal to those who want to add different insurances into one bundled packaged account. As an example, those who want travel insurance, breakdown cover and mobile phone insurance can get these included within the Platinum Club Lloyds account. However, it’s always worthwhile for consumers to shop around for insurance policies, to ensure they are getting the right cover and best price.
“Those looking to maximise the interest and cashback they earn could look towards Santander, which currently offers a £200 switching cash perk, and customers who put £1,500 per month into their Edge Up current account can earn 2.10% AER interest on balances up to £25,000. The account also provides some enticing perks, such as cashback on selected spending and bills capped at £15 per month, 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.
“An alternative account with a bundle of perks is the HSBC Premier Account, but customers must have an annual income of £100,000 or investments to be eligible. The account offers an upfront switching offer of £250, which will be increased to total £750 depending on whether a customer has qualifying income or investments placed with HSBC. Premier customers will gain airport lounge access and are able to apply for its Premier World credit card that hosts a lucrative reward scheme.
“If customers want a simple fuss-free account, then first direct is offering £175 for those who switch, it offers a competitive overdraft with its £250 buffer, subject to application, and gives customers access to its lucrative regular savings account that pays 7% AER.
“The first month of any new year can be tight for many customers, after the festive splurge, so a free cash boost could make a big difference. However, it is 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 lucrative free cash offers for switchers to kick off 2026. The latest offer from TSB should not go unnoticed, as not only will it pay £150 in cash, but the account will reward a further £50 by the end of May if customers meet specific requirements. Those who want to be rewarded each time they spend could get £5 per month for six months with the Spend & Save account, but if they upgrade to Spend & Save Plus, it will pay the reward for longer, plus the account will not charge any fees for transactions abroad.
“It’s quick and easy to switch using the Current Account Switch Service (CASS), and there are a variety of free cash perks to choose from. The accounts are all very different, some pay credit interest, others reward customers each time they spend on bills, and some are simpler and carry a competitive overdraft tariff. The right current account does depend on someone’s individual circumstances, so it is important consumers are not swayed by free cash alone.
“Customers who want to chase down a competitive rate of interest will find Nationwide currently offers the highest in-credit interest rate of 5.00% AER on its FlexDirect account, plus it is paying £175 for switchers right now. 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. Those looking for a fuss-free current account will find Kroo Bank Ltd offering 2.65% AER on balances up to £500,000.
“Another high street brand with a new switching offer is Lloyds Bank where customers can pocket £250 by moving to one of the Club Lloyds accounts, but the offer ends in a couple of weeks, on 3 February. The suite of current accounts from Lloyds Bank are tailored for varying needs, but the Club Lloyds is seen as its most affordable option for those who want some additional benefits. There is a £5 monthly fee to pay, but this is waived when customers fund the account with £2,000 per month. Account holders can pick either a 12-month Disney+ subscription, cinema tickets, a magazine subscription, a Gourmet Society membership or digital movie rentals. Those who opt for either the Silver, Platinum (both with Club Lloyds added on), or the Lloyds Premier, will charge a fee, but the array of benefits might appeal to those who want to add different insurances into one bundled packaged account. As an example, those who want travel insurance, breakdown cover and mobile phone insurance can get these included within the Platinum Club Lloyds account. However, it’s always worthwhile for consumers to shop around for insurance policies, to ensure they are getting the right cover and best price.
“Those looking to maximise the interest and cashback they earn could look towards Santander, which currently offers a £200 switching cash perk, and customers who put £1,500 per month into their Edge Up current account can earn 2.10% AER interest on balances up to £25,000. The account also provides some enticing perks, such as cashback on selected spending and bills capped at £15 per month, 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.
“An alternative account with a bundle of perks is the HSBC Premier Account, but customers must have an annual income of £100,000 or investments to be eligible. The account offers an upfront switching offer of £250, which will be increased to total £750 depending on whether a customer has qualifying income or investments placed with HSBC. Premier customers will gain airport lounge access and are able to apply for its Premier World credit card that hosts a lucrative reward scheme.
“If customers want a simple fuss-free account, then first direct is offering £175 for those who switch, it offers a competitive overdraft with its £250 buffer, subject to application, and gives customers access to its lucrative regular savings account that pays 7% AER.
“The first month of any new year can be tight for many customers, after the festive splurge, so a free cash boost could make a big difference. However, it is 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.”
