Current Account Switching Cash Offers Vanish

23rd April 2024

Consumers looking to switch their current account will find switching cash perks have vanished. Moneyfactscompare.co.uk compares some of the most attractive current account packages for consumers to consider.

Several current account providers have pulled their free cash offers this month, including HSBC, NatWest, Santander and first direct.
On Monday night, first direct pulled its £175 free cash offer, which launched on 26 March 2024.

On 5 April, NatWest and RBS pulled its £200 free cash offer and Santander pulled its £185 offer, which launched on 18 March. HSBC removed its £100 offer on 10 April, which launched on 12 March.
Towards the end of March, Lloyds Bank pulled its £175 free cash switching offer which had been available since the middle of February 2024.

In January, TSB withdrew its £125 free cash offer, and The Co-operative Bank pulled its £100 offer.

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said, "Consumers will find that the free switching cash perks offered by providers have vanished. These perks come and go at different times of the year, but it will be disappointing news for those who were hoping for a free cash boost when switching using the Current Account Switch Service (CASS). This should not deter switchers from comparing deals, as they could still find a better package if their current account is not working hard enough for them. Consumers could still find cashback on spending, or for paying bills, and savers could stand to earn a decent return on a high interest current account. The best package will rely on an individual's circumstances, so it’s wise to keep that in mind when comparing perks.

“Those who dip into their overdraft will find one of the most attractive tariffs comes from the fuss-free current account from Starling Bank at 15.0% EAR, which is less than half the rate many of the biggest banks charge and costs £1.35 in interest if someone borrowed £500 for seven days. In comparison, an overdraft of 39.94% EAR would cost £3.27. At the other end of the spectrum, Nationwide currently offers the highest in-credit interest rate of 5.00% AER on its FlexDirect account. Customers will need to make a note that the credit interest rate will fall after 12 months to 1% AER, and they will need to meet the set terms and conditions to receive the cashback.

“Customers who are happy to pay a fee on a current account to earn some perks will find Santander’s Edge Up current account is attractive, but they have missed the boat to grab a cash boost of £185 this month. Customers who can deposit £1,500 per month, and are happy to pay a £5 per month fee, can earn 3.50% AER interest on balances up to £25,000. This account also includes a cashback offer on selected spending and bills, and customers can sign up to Santander Boosts, which can include vouchers, cashback on spending and prize draws.

“The current account market will no doubt see a return of free cash offers, but these typically return when banks and building societies want to draw in new customers, or indeed when they expect consumers to be actively looking to move their deal, such as at the start of a new year. Consumers hoping to switch their current account may now pause to do so until free cash offers return to the market. Those not swayed by a free cash boost and ready to move away from their existing provider would be wise to ensure the new account suits their needs and that they can meet any eligibility criteria."