Best bank account switching offers, cashback & incentives

9 min Read Published: 19 Jul 2024

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.

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
Barclays £175 for new customers that switch to Barclays Bank Account or Premier Current Account using the Barclays app If opening a Barclays Bank Account, you must also sign up to Blue Rewards (£5 per month) to qualify for the switch offer. Blue Rewards gets you Apple TV+ and MLS Season Pass subscriptions, up to 5% interest on savings with a Rainy Day Saver plus you can earn up to 15% cashback with participating retailers.

Eligibility criteria apply for opening a Premier Current Account. Benefits include Apple TV+ and MLS Season Pass subscriptions, access to a range of savings products with preferential rates, access to Avios Rewards (monthly fee applies).

Co-operative Bank £100 for new and existing customers that make an eligible switch from another bank to a Co-op packaged Everyday Extra account.
Additional £10 a month for up to 6 months (up to £60 in total) when you use your Everyday Extra account.
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.
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.
Lloyds Bank £175 for customers who switch to a new Club Lloyds, Club Silver or Club Platinum account. Club Lloyds members get a lifestyle benefit including Disney+ or cinema tickets, as well as preferential rates on savings accounts and mortgage offers.

Club Lloyds Silver members get all of the above plus perks like AA breakdown cover, Euro and UK travel insurance, and mobile phone insurance. Club Lloyds Platinum get more extensive Worldwide travel insurance, AA breakdown cover, and mobile phone insurance.

Club Lloyds costs £3 per month which is waived if you deposit at least £2,000 per month. There are additional fees for Silver (£11.50 per month) and Platinum (£22.50 per month).

Barclays switching offer - £175 bonus

The details on Barclays' switching offer:

  • Must make a full switch using CASS or you will not be eligible
  • Must use the Barclays app to open your new account and initiate the switch
  • Open a Barclays Bank Account or a sole Premier Current Account
  • If opening a Barclays Bank Account, you must join Blue Rewards for £5 per month to qualify for switch offer
  • Must transfer a minimum of 2 active direct debits by 30th August
  • Must deposit at least £800 into your new account by 30th August
  • Access to savings products with preferential rates
  • Not available for those that already had any open Barclays Current Account on or before 08/07/24 or have ever received a switching offer reward for switching to any Barclays Current Account
  • Must start a full switch by 30th August and complete it within 30 days

Co-operative Bank switching offer - £100 bonus + £10 a month for up to 6 months

co-op bank logo
The details on Co-operative Bank's switching offer:

  • Must switch to a packaged Everyday Extra account from main current account with another bank
  • Must either open an Everyday Extra account or have an existing Everyday Extra account
  • Must not have received any switch incentive from Co-operative Bank since 01/11/22
  • Must deposit a minimum of £1,000, have 2 or more active direct debits or standing orders, make 5 or more debit card transactions, register for online banking or mobile app

The details on how to get an extra £10 a month for 6 months with Co-operative Bank's offer:

  • Must have met the criteria above
  • Get monthly payment of £10 if by 20th of each month you have 2 active direct debits or standing orders in place and have made 5 debit card payments in the qualifying month

First Direct switching offer - £175 bonus First Direct logo

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 30 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

Lloyds Bank switching offer - £175 bonus

The details on Lloyds' switching offer:

  • Must make a full switch to a new Club Lloyds, Club Lloyds Silver, or Club Lloyds Platinum account
  • Must start switch via CASS on or before July 30, 2024
  • Must transfer at least 3 active direct debits from your old account
  • Not available to those who have switched their current account to Lloyds, Halifax, or Bank of Scotland since April 2020
  • Access exclusive Club Lloyds benefits including preferential savings rates and lifestyle benefits like Disney+
  • Club Lloyds £3 fee waived when you deposit at least £2,000 per month into your account every month
  • Additional fees apply for Club Lloyds Silver and Club Lloyds Platinum
  • Offer ends 30th July 2024

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)

3.50% (AER) interest paid on current account balances up to £25,000

£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 7.00% interest on savings account balance up to £4,000 (includes 2.50% bonus rate for first 12 months)

£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

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

Santander EdgeSantander

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

Chase Bankchase bank cashback

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
          • Can also earn 1% AER interest on your current account balance

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 4.35% 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 3.50% AER on current account balances up to £25,000. £1,500 £5 Must have at least 2 active direct debits to qualify for the 3.50% 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

Krookroo bank logo

To qualify for 4.35% 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

Santander

Santander Edge Up

To qualify for 3.50% 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

Starling BankStarling

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)

Club Lloyds Current Account
Lloyds life insurance review

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

Chase Bankchase bank cashback

Get 4.10% AER interest* (4.02% 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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