Lloyds offers £200 switching bonus (but beware the monthly fees)
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Lloyds offers new customers £200 to switch bank accounts (but watch out for the monthly fee)
Lloyds Bank recently entered the fray of current account switching by launching a £200 cash bonus to entice new customers.
But despite offering the biggest monetary reward for switchers, one expert warns it’s probably not worth it for most people.
That is because the bonus is only available to those who open one of its premium accounts.
Switching Bonus: Llloyds Bank is offering £200 cash to entice new customers to open one of its new premium accounts
These accounts offer add-ons like roadside assistance and travel insurance, but also charge a monthly fee.
Andrew Hagger, of research site MoneyComms, says potential switchers should do their homework before being tempted.
“These bills aren’t worth it unless you take advantage of the insurance benefits.
‘If you go on holiday a few times a year, it may be worth getting travel insurance, or breakdown cover if you have a car.
‘But I wouldn’t sign up right away because £200 is dangling in front of you. You could have spent that on fees at the end of the year.’
To receive the bonus, customers must switch from another bank to a Lloyds Silver Account or Platinum Account before March 20 using the Current Account Switching Service.
The Silver Account offers UK and European travel insurance up to age 65, mobile phone insurance and AA breakdown cover, but costs £10 per month.
The Platinum Account has worldwide travel insurance up to age 80 and roadside assistance, but costs £21 per month.
Club Lloyds Silver and Platinum are also included in the offer, allowing holders to earn interest on balances of up to £5,000.
But switching to Club Lloyds costs an extra £3 a month on top of the other fees – although this £3 is waived each month, a customer pays £1,500 or more.
First Direct is currently offering £175 to switch to its free current account.
t.armstrong@dailymail.co.uk