Best bank account switching offers, cashback & incentives

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.

Bear in mind that your old account will be closed as part of the switch via CASS. It can be beneficial for your credit report to have evidence of being with a bank for an extended period of time. Therefore closing old bank accounts can have a negative impact on your credit report. In addition, opening numerous bank accounts which provide access to credit (such as overdrafts) can also have a negative impact on your credit report and harm your ability to borrow in the short term. So bear this in mind if you plan to apply for a mortgage in the near future.

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	Extra Benefits
First Direct	£175 for new customers that switch to a 1st Account	Access to £250 interest-free overdraft. Access to Regular Saver Account with 7.00% interest. No First Direct debit card fees when spending abroad
Nationwide	£175 for customers that switch a non-Nationwide bank account to FlexPlus, FlexDirect or FlexAccount	FlexDirect comes with 5.00% AER on balances up to £1,500 and up to £60 cashback over 12 months, no monthly fee but it is best suited to those who bank mostly online. FlexAccount comes with unlimited branch access and telephone support and no monthly fee. FlexPlus costs £18 a month and comes with worldwide family travel and mobile phone insurance, plus UK and European breakdown cover.
Santander	£150 for customers that switch a non-Santander current account to a new or existing Santander Edge, Edge Up, Everyday or Private (v2) current account^	Santander Edge, Edge Up and Private (v2) come with cashback on bills and essential spending. Monthly interest of 3.00% AER on balances up to £25,000 with Edge Up and Private (v2), Santander Edge customers have access to optional savings account with 6.00% AER interest on balances up to £4,000 (includes 1.50% AER bonus rate for the first 12 months from opening).
Co-operative Bank	Switch and stay to get up to £150: £75 for customers that switch from another bank to a new Standard Current Account or Everyday Extra account or an existing Standard Current Account, Privilege, Privilege Premier, Current Account Plus or Everyday Extra account. Additional £25 a month for up to 3 months (£75 in total) for customers that actively use their current account each month - eligibility criteria listed below	Mobile phone insurance, worldwide travel insurance and UK & European breakdown cover included with the Everyday Extra packaged bank account. There is a £15 monthly fee for this account. Those that apply for an Everyday Extra current account by 13/12/24 will get their £15 monthly subscription paid straight back into their account for the first three months.

^ Edge, Edge Up and Private current accounts have a monthly fee, however, this can be offset by cashback received on spending.

First Direct switching offer - £175 bonus

The details on First Direct's switching offer:

• Must make a full switch using CASS or you will not be eligible
• Open a 1st Account
• Must transfer a minimum of 2 direct debits or standing orders
• Must deposit £1,000, make 5+ debit card payments and log-in to digital banking within 45 days of opening account
• Access to a £250 interest-free overdraft (subject to credit checks)
• Access to a 7.00% AER Regular Saver account
• New customers only who have never previously held a First Direct product
• Not available for those that have opened an HSBC current account on or after 01/01/18
• Offer can be withdrawn at any time

Nationwide switching offer - £175 bonus

The details on Nationwide's switching offer:

• Must complete the full switch online using CASS and close old current account
• Must switch a non-Nationwide bank account with at least 2 active Direct Debits
• Switch must be completed within 28 days of requesting it
• Must pay at least £1,000 into your Nationwide account and make one payment using your Nationwide debit card within 31 days of requesting the switch
• Must switch to FlexPlus, FlexDirect, or FlexAccount
• Benefit from 5.00% AER and no monthly fees with FlexDirect
• Access a packaged bank account with worldwide travel insurance and fee-free spending abroad amongst other perks (FlexPlus costs £18 per month)
• Must not have benefited from any previous Nationwide current account online switch offer since 18/08/21
• Offer can be withdrawn at any time

Santander switching offer - £150 bonus

The details on Santander's switching offer:

• Must make a full switch using CASS or you will not be eligible
• Must switch a non-Santander bank account to a new or existing Santander Edge, Edge Up, Everyday or Private (v2) current account
• Note that Edge, Edge Up and Private (v2) current accounts have a monthly fee - See Santander website for full T&Cs
• Within 60 days of telling Santander to switch your account, you must have completed the full switch using CASS
• Must have 2 active direct debits (can't be to fund a savings account with Santander, Cater Allen or Cahoot) and have paid at least £1,500 into your eligible account within 60 days of telling Santander to switch your account
• Must still hold the account, including 2 active direct debits, on the date of switch incentive payment
• Must not have already received a cash incentive to switch to a Santander current account since September 2021
• Additional benefits - vary by account (details in table above)

Co-operative Bank switching offer - £75 bonus + £25 a month for up to 3 months

The details on Co-operative Bank's switching offer:

• Must make a full switch using CASS or you will not be eligible
• Must switch a current account with a different bank to a new Standard Current Account or Everyday Extra account, or an existing Standard Current Account, Privilege, Privilege Premier, Current Account Plus or Everyday Extra account
• Must deposit a minimum of £1,000, have 2 or more active direct debits, make 10 or more debit card or digital wallet transactions, register for online banking or mobile app and set up the debit card in a digital wallet by the 30th day after your switch completes
• Must not have received any switch incentive from Co-operative Bank since 01/11/22

The details on how to get an extra £25 a month for up to 3 months with Co-operative Bank's offer:

• Must have met the criteria above
• Actively use current account by depositing £1,000 or more, making 10 or more card or digital wallet transactions and having 2 or more active direct debits each month

Best current accounts for cashback

Bank/Building Society	Incentive	Min. Monthly	Monthly Fee
Santander Edge Up	1% cashback on selected household bills paid by direct debit (maximum of £15 a month) 1% cashback on essential spending (maximum of £15 a month) 3.00% (AER) interest paid on current account balances up to £25,000 £150 switch bonus for eligible customers (details above)	£1,500	£5
Santander Edge	1% cashback on selected household bills paid by direct debit (maximum of £10 a month) 1% cashback on essential spending (maximum of £10 a month). Access to 6.00% interest on savings account balance up to £4,000 (includes 1.50% bonus rate for first 12 months) £150 switch bonus for eligible customers (details above)	£500	£3
Chase Bank*	Get 1% cashback on your everyday debit card spending (exceptions apply) for your first 12 months. Maximum of £15 a month. Also, round-up your debit card spending to the nearest £ and earn 5% AER interest with a round-up account. Cashback does not apply to round-ups or saver account deposits. See Chase.co.uk*.	No minimum	£0

 

Santander Edge Up

To get up to 1% cashback on bills and spending with a Santander Edge Up account (Max £30 cashback per month), you must:

• • • • • Pay £5 a month to maintain the account
        • Pay in at least £1,500 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

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Santander Edge

To get up to 1% cashback on bills and spending with a Santander Edge account (Max £20 cashback per month), 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

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Chase Bank

To get 1% cashback on your everyday debit card spending with a Chase current account, you must:

• • • • • Open a Chase current account by downloading the Chase app*
        • Be a permanent UK resident aged 18+
        • Cashback is available for your first 12 months, max £15 a month
        • Some cashback exceptions apply

Best current accounts for interest

Current Account	Interest	Min. Monthly	Monthly Fee	Small Print
Nationwide FlexDirect Account	5.00% AER on balances up to £1,500. Reverts to 1.00% after the first 12 months. Also falls to 1.00% if a minimum of £1,000 is not deposited each month during the first 12 months.	£1,000	£0	Reverts to 1.00% after the first 12 months. Also falls to 1.00% if a minimum of £1,000 is not deposited each month during the first 12 months.
Kroo	3.65% AER on current account balances up to £500,000.	£0	£0	Have to open a Kroo current account by downloading the Kroo app.
Santander Edge Up	3.00% AER on current account balances up to £25,000.	£1,500	£5	Must have at least 2 active direct debits to qualify for the 3.00% interest rate. Interest is paid monthly.
Starling Bank	3.25% AER (variable) interest on balances up to £5,000.	£0	£0	Interest is paid monthly on balances up to £5,000. Interest is paid on balances in Personal, Joint, Teen and Kite accounts.
Club Lloyds Current Account	1.50% AER (variable) on balances between £1 and £3,999.99, 3.00% AER (variable) on any part of the balance between £4,000 and £5,000.	£0	£3^	Must pay out two direct debits each month to earn monthly credit interest.
Chase Bank*	Round-up your debit card spending to the nearest £ and earn 5% AER interest with a round-up account.	£0	£0	Interest is paid monthly. Have to open a Chase current account first by downloading the Chase app.

^ Club accounts have a monthly fee, however, the Club Lloyds fee is waived each month that you pay in £2,000 or more.

Nationwide FlexDirect

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

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Kroo

To qualify for 3.65% interest with a Kroo current account, you must:

• • • • • Open a Kroo current account by downloading the Kroo app
        • Be aged 18 or over
        • Be a UK resident

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Santander Edge Up

To qualify for 3.00% interest with a Santander Edge Up account, you must:

• • • • • Be aged 18 or over
        • Be a UK resident
        • Pay £5 a month to maintain the account
        • Pay in at least £1,500 a month
        • Add 2 active direct debits to the account

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Starling Bank

To qualify for 3.25% interest with a Starling Bank current account, you must:

• • • • • Open a Starling Bank current account by downloading the Starling Bank app
        • Be a UK resident
        • Must have a smartphone
        • Need a valid photo ID (passport or driving licence)

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Club Lloyds Current Account

To qualify for 3.00% AER (variable) interest with a Club Lloyds Current Account, you must:

• • • • • Be aged 18 or over
        • Be a UK resident
        • Pay out two direct debits each month to earn monthly credit interest

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Chase Bank

Get 3.50% AER interest* (3.45% gross) variable with a Chase Saver account and round-up your debit card spending to the nearest £ and earn 5% AER interest (4.89% gross) variable. To qualify for a Chase current account, you must:

• • • • • Open a Chase current account by downloading the Chase app
        • Add a Chase saver account within the app
        • Be aged 18 or over
        • Be a UK resident

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. Additionally, you can find the best savings rates for your money in our article, 'Best savings accounts in the UK'.

 

 

 

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