**Banks Offer Up to £200 in Cash Incentives for Account Switching—Here’s How You Can Benefit**
Leading UK banks are ramping up the competition for new customers by offering generous cash incentives to those who are willing to switch their current account. With deals of up to £200, or even more in some cases, these one-off bonuses can provide a welcome financial boost with surprisingly little effort required from the consumer.
Account switching has long been viewed as a cumbersome process, but recent improvements to the official Current Account Switch Service mean that moving your everyday banking is now reassuringly straightforward. In a bid to outdo rivals and attract fresh custom, high street names such as Santander, Nationwide, TSB and First Direct are now offering some of the most lucrative sign-up bonuses seen in years.
Financial experts at MoneySavingExpert have highlighted that some cashback deals are time-limited, so those interested must act quickly to capitalise. While the offers primarily focus on upfront cash, many come with added sweeteners such as high-yielding regular savers, cashback schemes, and features designed to make day-to-day banking more rewarding.
**First Direct 1st Account: Up to £205 on Offer**
One of the standout incentives comes from First Direct. New customers receive a £175 cash payment after meeting some simple account usage criteria, including moving over two direct debits or standing orders, making at least five card purchases within 45 days, and depositing £1,000 (which can be withdrawn immediately, if preferred). For those who choose to apply through MoneySupermarket, there’s an additional £30 bonus, raising the potential payout to £205. To qualify, the switch must be completed by the end of July, with payment expected by mid-August.
**TSB’s Switch Deals: Cash and Rewards**
Meanwhile, TSB’s Spend and Save account is tempting switchers with a mix of cash and experiential perks. Customers who complete an account switch, set up two direct debits, and use their new debit card at least 20 times each month can earn an initial £100. By maintaining high debit card activity, an extra £15 cashback is available each month for six months, totalling a possible £190. For those meeting the monthly payment target in December, a £120 bonus is provided as an Expedia or UK activity voucher—although this final reward is limited to solo use and may not appeal to families. Importantly, only those who haven’t received a TSB bonus since October 2022 qualify.
**Nationwide: A Strong All-Round Offer**
Nationwide is focusing its current £200 bonus on existing customers—specifically, anyone holding a personal savings account, mortgage, or those switching in a different current account. Eligibility depends on switching from another bank, setting up two direct debits, depositing £1,000, and making at least one card purchase in the first month. Alongside the bonus, there is a competitive 5% interest rate on current account balances up to £1,500 for a year, plus 1% cashback on many card payments and access to a regular saver offering 6.5% annual interest for those able to save monthly.
**Santander Edge: Cash and Everyday Cashback**
Santander’s approach is similarly attractive, with a £180 cash bonus and ongoing household bill perks. To qualify, customers must switch in and set up at least two household direct debits, and deposit £1,500 within the first 60 days. The account includes ongoing cashback: 1% on bills (up to £10 per month), as well as groceries, fuel, and even train fares until September. It’s worth noting, however, that anyone who has previously received a Santander switch bonus is ineligible.
**Co-op Bank: Tiered Bonus and High-Saver Option**
Not to be outdone, Co-op Bank is currently offering £175 to new and existing customers who meet its switching criteria—depositing at least £1,000, organising two direct debits, signing up for digital banking, and making at least 10 card transactions in the first month. Further £25 monthly bonuses can be accessed over the three months that follow for continued active use. Additionally, the account comes with a high-interest linked regular saver at 7% AER. As with other banks, previous bonus claimants—those who received a Co-op switching reward since November 2022—are excluded.
**Check the Small Print and Act Swiftly**
Customers are advised to scrutinise the terms of each offer. Many bonuses stipulate specific eligibility requirements, including new customer status or not having taken advantage of similar promotions in recent years. Direct debits, qualifying deposits, and debit card usage targets are common standards to unlock these switching rewards.
While these deals require a handful of actions—primarily to demonstrate active use of the new account—the effort can be minimal compared to the rewards. The banks’ competing generosity is, for now, translating into hundreds of pounds in potential gains for those who are quick to act. However, most promotions are time-limited and could be withdrawn at short notice, so swift decision-making is advised.
The bottom line is that for consumers willing to review their banking habits, switching accounts could be a simple way to pocket a significant lump sum in 2025. Those considering a change should compare the full offer details, ensure all criteria can be met, and move fast before the bonuses expire.