Barclays is offering a £200 incentive for customers switching their current account to the bank, with the offer set to expire at the end of August 27. To be eligible for the payment, individuals must open an account via the Barclays app and initiate the switch using the Current Account Switch Service.
The promotion requires customers to complete the switch, which includes setting up at least two active direct debits and depositing £2,000 into the new account within 30 days of opening it. This offer is part of a competitive market for bank account switching deals, with several other institutions offering similar incentives.
This year has seen a strong performance in switch bonuses, with some exceeding the £200 mark. HSBC, for example, is currently offering £220. The Co-operative Bank had a promotion for £300 for existing customers, which ended on August 17, but its standard £200 deal remains active. This standard offer provides an initial £125 payment, followed by £25 per month for three months.
Personal finance experts note that while cash bonuses are appealing, consumers should also consider other benefits such as enhanced savings rates and cashback offers. George Sweeney, a personal finance expert at Finder, highlighted that banks like Chase and Nationwide offer linked savings accounts alongside switch bonuses.
Other banks with significant switch bonuses include NatWest, offering £200 with less stringent requirements regarding direct debits, though it does require a £1,250 deposit and a mobile app login within 60 days. First Direct and Nationwide are offering £175. Starling is providing a unique incentive until October 11: a free SURI Pro 2.0 toothbrush.
Beyond direct cash payments, banks are employing other strategies to attract new customers, such as improved savings rates and cashback programs. Barclays, for instance, offers a 'Blue Rewards' scheme for £5 per month, which includes benefits like discounted Apple TV subscriptions. Sweeney pointed out that Nationwide's £175 switch deal, combined with a 5% AER savings rate on balances for 12 months, 1% cashback up to £60 annually, and a linked regular saver at 6.5% AER, could yield up to £394.50 for a savvy switcher over a year. Chase offers a potential £240 annual return through 2% cashback on certain monthly purchases, up to £20.
Consumers are advised to compare not only switch deals but also ongoing account features, interest rates, and cashback opportunities when selecting a banking provider.