Best bank account switching offers, cashback & incentives

5 min Read Published: 23 Jan 2023

The best bank switching, cashback and interest offers

Switching bank accounts got a whole lot easier on 16 September 2013 thanks to the Current Account Switch Service (CASS), brought in by regulators in a bid to boost competitiveness within the banking sector.

Previously, switching current accounts was seen as a nightmare, taking up to 30 days to complete and with little incentive to do so. It is perhaps unsurprising that consumers have typically only switched their bank once every 16 years.

In this article, we round up the best switching offers, cashback and interest rates so you can find the best current account for you.

How to switch current account

Under CASS, consumers are 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 be automatically transferred 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 before you 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 licence 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. For more information on the FSCS read our article, 'What is the Financial Services Compensation Scheme (FSCS)?'

The best current account switch offers

Bank/Building Society Switching Offer Small Print Extra Benefits
Lloyds Bank £200 for customers that switch to a Lloyds Silver, Lloyds Platinum, Club Lloyds Silver or Club Lloyds Platinum account. Must switch using CASS and to a qualifying account. Offer valid until 20/03/23. 3 months 0% interest overdraft.
Santander £200 for customers that switch to the Santander Edge, 1|2|3, Everyday, Select and Private current account. Must switch using CASS. Must pay in a minimum of £1,000, set up 2 active direct debits, pay in £1,000 and log in to mobile or online banking within 60 days of switching. Must not have switched to any Santander accounts before and received any switching offers. Additional cashback offers and interest rates are available with some of the Santander current accounts. May be eligible for a 4-month interest-free overdraft.
First Direct £175 for new customers that switch to a 1st Account. Must switch using CASS. Must pay in at least £1,000 within 3 months of opening the account. Only available to those who have not previously held a First Direct account and/or have not opened an HSBC current account on or after 01/01/19. Access to £250 interest-free overdraft. Access to Regular Saver Account with 7.00% interest.

Lloyds Bank switching offer - £200 bonus Lloyds

The details on Lloyd's Bank switching offer:

  • Must switch using CASS or you will not be eligible
  • Must switch to one of the following accounts: Lloyds Silver, Lloyds Platinum, Club Lloyds Silver or Club Lloyds Platinum account
  • A monthly fee is payable on the accounts you switch to
  • Access to an interest-free overdraft for 3 months
  • Don't qualify for the switching offer if you have received an incentive for switching to a Lloyds current account since April 2020

Santander switching offer - £200 bonus Santander

The details on Santander's switching offer:

  • Must switch using CASS or you will not be eligible
  • Must switch to one of the following accounts: Santander Edge, Santander 1|2|3, Santander Everyday, Santander Select and Santander Private current account.
  • Must pay in a minimum of £1,000, set up 2 active direct debits and log in to mobile or online banking within 60 days of opening the account
  • Must not have received any Santander switching offers before
  • You can switch to a new or existing Santander current account
  • May be eligible for a 4-month interest-free overdraft

First Direct switching offer - £175 bonus First Direct logo

The details on First Direct's switching offer:

  • Must switch using CASS or you will not be eligible
  • Must pay in at least £1,000 in the first 3 months
  • Access to a £250 interest-free overdraft
  • Access to a 7.00% AER Regular Saver account
  • Not available for those that already have a First Direct account

Best current accounts for cashback

Bank/Building Society Incentive Min. Monthly Monthly Fee
Santander Edge 1% cashback on household bills paid by direct debit (maximum of £10 a month) and 1% cashback on essential spending (maximum of £10 a month). Access to 4% interest on savings account balance. £500 £3
Chase Bank  Get 1% cashback on your everyday spending for the first 12 months. Also round up your spending to the nearest £ and earn up to 5% interest on your round-ups. 2.7% interest on savings balance. No minimum £0

Santander

Santander Edge

To get up to 2% cashback on bills and spending with a Santander Edge account, you must:

  • Pay £3 a month to maintain the account
  • Pay in at least £500 a month
  • Add 2 active direct debits to the account
  • Pay bills via direct debit
  • Be a permanent UK resident and be over the age of 18

Chase Bankchase bank cashback

To get 1% cashback with a Chase Bank account, you must:

  • Open a Chase current account
  • Activate cashback rewards within the app
  • Use round-up spending to benefit from up to 5% interest on round-up savings

Best current accounts for interest

Current Account Interest Min. Monthly Monthly Fee Small Print
First Direct  7.00% interest on balances up to £3,600 for 12 months. £25 £0 Minimum monthly deposit of £25. Can save up to £300 a month. Any unused allowance from previous months can be carried over.
Nationwide FlexDirect Account 5.00% on balances up to £1,500. Reverts to 0.25% after the first 12 months. Also falls to 0.25% if a minimum of £1,000 is not deposited each month during the first 12 months. £1,000 £0 Reverts to 0.25% after the first 12 months. Also falls to 0.25% if a minimum of £1,000 is not deposited each month during the first 12 months.
Chase Bank 2.70% on balances up to £500,000. £0 £0 Have to open a Chase current account first by downloading the Chase app.
Virgin Money M Plus Account 2.02% AER on balances up to £1,000 on the main account. 2.52% on savings balances up to £25,000; 2.02% on savings balances over £25,000. £0 £0 Interest is paid annually

First Direct
First Direct logo

To qualify for 7.00% interest on a First Direct Regular Saver account, you must:

  • Have a First Direct current account (and you can get £175 for switching)
  • Be aged 18 or over
  • Set up a standing order from your current account to your Regular Saver
  • Pay between £25 - £300 into your Regular Saver each calendar month

Nationwide FlexDirect Nationwide

To qualify for 5% interest on a Nationwide FlexDirect account, you must:

  • Be aged 18 or over
  • Be a UK resident
  • 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
  • Hold no more than 4 existing sole or joint Nationwide current accounts

Chase Bankchase bank cashback

To qualify for 2.70% interest with a Chase saver account, you must:

  • Open a Chase current account by downloading the Chase app
  • Add a Chase saver account within the app and click 'start saving'
  • Fill out the details to open a Chase saver account

Virgin Money M PlusVirgin Money

To qualify for 2.52% interest on a Virgin Money M Plus account, you must:

  • Be aged 18 or over
  • Have a good credit history

More on current accounts

Head over to our up-to-date list of the best current accounts in the UK, and keep an eye on our round-up of the best high-interest current accounts for the latest deals and offers.