Could you get a cash windfall in time for Christmas by switching your account provider?
A cash-to-switch current account offer could give your bank balance a boost just in time for Christmas, but there are some things to consider first.
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Current account providers have been launching new cash-to-switch offers recently – which could be very handy if you’re looking for a bit of extra money in time for Christmas.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, says there are some “enticing perks” to weigh up.
She adds: “Consumers could pick an account that offers cashback on spending, high-credit interest or a competitive overdraft tariff.”
Among the cash on offer, Lloyds Bank is paying £200 for eligible new and existing customers switching to a Club Lloyds account until December 10 2024.
Nationwide Building Society and First Direct have also been running offers of £175 to switch.
And the Co-operative Bank has launched a “switch and stay” offer. This means eligible switchers can get up to £150 – made up of £75 when they complete a switch to the bank – and a further £25 per month for three months after that.
With several sweeteners to choose from, it can be hard to know which deal to choose.
Firstly, Springall says: “It is vital consumers are not swayed by a perk alone and instead choose an account that suits their everyday needs.”
Some accounts have interest-free overdraft buffers. Customers with First Direct, for example, can get a £250 interest-free overdraft, subject to status.
Some current accounts also have linked savings accounts with high interest rates. If you have some savings to deposit, it could be worth checking not only the rate, but also if there is a limit to the amount of savings that the rate applies to.
Some accounts charge a monthly fee in return for a range of perks, such as travel or mobile phone insurance, or vehicle breakdown cover.
If you’re planning to take out a paid-for current account, it’s worth considering how often you’ll use these perks, what level of cover they will provide if you need to use them, and whether you’d be better off buying perks such as insurance separately.
Springall also adds: “Those consumers who plan to make frequent trips abroad can also find accounts that don’t charge them for using their debit card in an ATM or in store, so they can avoid paying out on transaction fees compared to a more traditional bank account.”
The Current Account Switch Service (CASS) can help take the hassle out of moving banks.
Springall adds: “Switching current accounts is quick and easy to do and the Current Account Switch Service moves over both any balance and redirects both standing orders and direct debits to a new account.
“However, customers will need to review their online shopping or subscription card details and update them to their new one once it’s all set up.”
If you’re planning to switch and get a cash reward, it’s vital to make sure you’ve read and understood all of the terms and conditions.
The switch may need to be completed within a certain time period to qualify.
Springall adds: “Whichever account someone chooses, it is imperative they maximise any benefits and ensure they meet any eligibility criteria.
“Some accounts require minimum funding, a certain number of direct debits or online banking, so it’s vital customers check the terms and conditions carefully to not be left disappointed.”