Best Current Account switching offers, cashback & incentives

From 16th September 2013 consumers have been able to switch current account within 7 workings days.

Previously, switching current accounts was seen as a nightmare taking up to 30 days to complete, plus there was little incentive to do so. It is perhaps unsurprising that consumers have typically only switched their bank once every 16 years. Yet banks are the biggest source of complaints to the Financial Ombudsman.

Switching bank accounts got a whole lot easier thanks to the Current Account Switch Service brought in by regulators in a bid to boost competitiveness within the banking sector. Plus there are now genuine incentives to change your bank or building society.

Switching current accounts is now quick and easy

Under the Current Account Switch Service consumers will be able to choose the date on which they want to transfer their current account and the whole process will not take more than 7 working days.

Direct debits and standing orders will also be automatically transferred across to your new account as will any payments sent to the old account (for a period of 13 months). If any payments are missed, they will guarantee to reimburse you in full.

Check who owns each bank before making a switch

The Financial Services Compensation Scheme (FSCS) protects your savings for losses up to £85,000 (£170,000 for joint accounts) should your bank or building society go bust, as long as it is authorised by the Financial Conduct Authority (FCA). However, the scheme protects your savings up to £85,000 per bank or building society providing the bank or building society has its own banking authorisation. Some banks and building societies share their banking license with other brands because they are part of a bigger group (for example HSBC and First Direct).

In these instances, you will only be covered for £85,000 across both banking brands for accounts in your sole name (£170,000 for joint accounts). Therefore it is important to ensure that you understand how switching bank accounts will impact your protection under the FSCS when viewed in the context of your existing accounts. This handy tool allows you to select the banks and building societies that you currently hold money with (or plan to hold money with) to see your level of protection under the FSCS if any of them were to go bust.

Best current account with an upfront bonus

Banks and building societies are offering some fantastic cash incentives to tempt customers away from rival banks. Below is a roundup of the best current account switching offers out there. Typically you have to close your old account once you've made the switch in order to receive the incentives. Most banks require a minimum monthly amount to be paid into the account to receive the bonus.

The current accounts with the best cash offers

Bank	Cash offer	Min Monthly	Additional Benefits	Cash Paid
NatWest Select account	£125	£1,500	N/A	By 12/02/21
NatWest Reward Account	£125	£1,500	Earn up to £5 back in rewards that can be redeemed as cashback, gift cards or e-codes (£2 fee)	By 12/02/21
HSBC (Advance account)	£125	£1,750 or £10,500 every 6 months	Access to a linked savings account paying 2.75% interest on up to £250 per month	Within 30 days of switching
Royal Bank of Scotland (Reward account)	£100	£1,500	Earn up to £5 back in rewards that can be redeemed as cashback, gift cards or e-codes (£2 fee)	By 29/01/21
Royal Bank of Scotland (Select account)	£100	£1,500	N/A	By 29/01/21

NatWest - Switching criteria (£125 payable by 12th February 2021)

To get the £125 bonus for switching to the NatWest Select account you must:

• Switch online or via the mobile app by 19th November 2020
• Pay in at least £1,500 a month
• Log into the mobile app or online banking by 15th January 2021

Alternatively, you could choose to open a NatWest Reward account which for a £2 monthly fee offers £5 cashback every month so long as:

• Switch online or via the mobile app by 19th November 2020
• You pay in at least £1,500 a month
• You log into its mobile app or online banking by 15th January 2021
• Set up two monthly direct debits of £2 or more

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HSBC - Switching criteria (£125 payable within 30 days of switching)

To get the £125 bonus for switching to the HSBC Advance account you must:

• Switch within 30 days of applying
• Pay in at least £1,750 per month (or £10,500 every 6 months)
• Have not had an HSBC, First Direct or M&S current account since 01/01/17

Additionally, you could get a linked savings account where you can earn 2.75% interest on up to £250 per month

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Royal Bank of Scotland - Switching criteria (£100 payable by 29th January 2021)

To get the £100 bonus if you switch to Royal Bank of Scotland's Select account, you must:

• Switch before 19th November 2020
• Log in to its mobile app or digital banking by 30th December 2020
• Pay in at least £1,500

Alternatively, you could choose to open a RBS Reward account which for a £2 monthly fee offers £5 cashback every month so long as:

• You pay in at least £1,500
• You log into its mobile app or digital banking by 30th December 2020
• Set up two monthly direct debits of £2 or more

 

Best current account with cashback

Banks and building societies are offering some cashback incentives to encourage customers to switch providers and bank with them. Below is a roundup of the best current account switching cashback offers out there. You need to close your old account in order to receive the incentive and if you do this using the Current Account Switching Service (CASS) this is typically done for you. Most banks require a minimum monthly amount to be paid into the account to receive the bonus as well as at least 2 direct debits (over £2).

The current accounts with the best cashback offers

Bank/Building Society	Incentive	Min monthly amount
Santander 123 Lite	1-3% cashback on bills (for a £1p/m fee)	£500

Santander Cashback - Switching Criteria

To get 1-3%* cashback on bills with a Santander 123 Lite account you must:

• Pay £2 a month to maintain the account
• Pay bills via direct debit
• Pay in at least £500 a month
• Have 2 direct debits
• Log in to online banking every 3 months from account opening

*This is capped at £5 per month in each of the 1%, 2% and 3% cashback tiers from May 2020 so you can get a maximum of £15 each month

Best current account that pays interest

Banks and building societies are offering interest rates on your money up to the value of £1,500. If you're looking to save more than this check out our savings best buy tables for the best interest rates on the market at the moment.

Bank/Building society	Interest rate	Balance Amount	Min monthly amount
Nationwide	2% (for the first 12 months)	£1,500	£1,000
TSB	1.50%	£1,500	£500
Virgin Money	2.02%	£1,000	No minimum

 

Nationwide FlexDirect account criteria

To qualify for 2% interest on the first £1,500 of your balance you need to:

• Pay in £1,000 a month (excluding transfers from other Nationwide accounts or Visa credits)
• Open an account for the first time solely in your name or a joint account with someone else

After the first 12 months of interest the rate will reduce to 0.25% AER. If you open an account for the first time you can also take advantage of 0% interest on your overdraft for the first 12 months, depending on your personal circumstances.

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TSB Classic Plus account criteria

To get 1.50% interest on £1,500 of your savings you need to:

• Be over the age of 18
• Pay in a minimum of £500 each month
• Register for online banking and bank statements

(Interest paid on this account will be removed from 2nd December 2020) 

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 Virgin Money current account

There's no minimum monthly amount to qualify for interest on the Virgin Money account. Accounts can be opened over the telephone or in branch and the interest rate is paid monthly.