TSB has launched a bank account switching incentive, offering new and existing customers £200 in cash.
Under the deal, customers switching to a TSB Spend and save or Spend & Save Plus current account receives £200, paid in two installments.
New customers will receive £125 if they open an account and then switch to TSB before 31 August 2023 using the Current Account Switch Service (CASS).
TSB customers with a Spend & Save and Spend & Save Plus account could win a £1,000 prize
They must also set up at least two direct debits, use their debit card at least once, and log into the TSB mobile banking app to get the first installment in their account.
A further £75 will be deposited into their account on 31 March 2024 if they keep their account open and pay at least £500 each month, make five debit payments and have two direct debits.
TSB is also offering customers the chance to earn an additional £5 cashback each month for the first six months with a Spend & Save account.
For Spend & Save Plus, the same cashback is available on an ongoing basis – so customers can earn £60 in the first 12 months, although the Plus account incurs a £3 monthly fee.
However, there is also another hoop to jump for this. Customers must make 20 debit card payments each month to earn the cashback.
It is worth noting that if a customer has received an incentive or benefit for switching to TSB Bank using the CASS since October 1, 2022, they will not be eligible for this offer.
How does it compare?
TSB faces stiff competition from a number of other banks including NatWest, RBS who also offer £200, as well as First Direct who offer £175 and Lloyds Bank who pay £150.
Unlike TSB’s offer, the NatWest and RBS offer come with very few hoops to jump through to qualify for the £200.
People must apply online or through their mobile app and convert a current account held elsewhere to a NatWest or RBS account. This could be the free Everyday account.
They then have to deposit £1,250 into their new account and log into their mobile banking app within 60 days.
NatWest pays £200 as a switching incentive. Players must deposit £1,250 into their new account within 60 days and log into their mobile banking app.
If they meet these conditions, NatWest will deposit £200 into the new account within seven days.
Switchers can opt for the NatWest or RBS Rewards account or the Everyday account.
NatWest’s Reward account gives customers an extra £4 per month if they set up two direct debits, and an extra £1 per month to log into online banking, totaling an extra £60 per year. RBS similarly gives £4 extra cashback per month for setting up two direct debits.
However, both accounts also have a monthly fee of £2. The Select accounts have no monthly fees, but also no additional cashback.
Similarly, with First Direct, there are very few hoops to jump through to land the bonus offer.
Customers only need to pay at least £1,000 within three months of opening the account to receive the £175.
Customers who open a First Direct checking account will receive a cash bonus of £175 if they deposit at least £1,000 within three months.
First Direct also offers up to £250 interest-free overdrafts, access to a market-leading regular savings account paying 7 per cent and now free debit card use abroad.
TSB also offers the free use abroad, but only when using the £3 monthly Spend & Save Plus current account.
While Lloyds Bank is offering a lower £150, it may also be a better option than TSB’s deal. Although the offer expires on July 17.
Those who switch to the Club Lloyds account can choose from a range of ‘lifestyle benefits’ each year, which when used can save real money.
There is a £3 monthly fee to maintain the account – but this is waived each month as long as account holders pay £2,000 or more.
Account holders can choose from a 12-month Disney+ subscription, a choice of six Vue or Odeon movie tickets, a magazine subscription, or Coffee Club and Gourmet Society membership.
Lloyds Bank has a £150 switching offer – for new customers who switch from another bank to a Club Lloyds Bank account before 17th July.
The Disney+ subscription could save someone £79.90 a year. Similarly, an adult Vue cinema ticket typically costs around £11 or £12. That could save £72 on cinema tickets over the course of the year.
Club Lloyds also pays interest on in-credit interest – something which is quite rare at the moment.
On the first £4,000 it pays 1.5 per cent and then between £4,000 and £5,000 it pays 3 per cent. It is not possible to receive interest on any part of a balance in excess of £5,000.
All told, therefore, account holders can earn up to £90 a year of credit interest if they have a minimum of £5,000 in the account at all times.
Cash is not always king
Ultimately, people must avoid being blinded by the incentive to switch. Cash freebies aren’t the only factor people should look at when considering a new bank.
There are plenty of other benefits that are often offered, such as interest on credit. For example, Nationwide offers 5 percent to new members on balances up to £1,500, while digital bank Kroo pays 4.1 percent on balances up to £85,000.
Cashback is another benefit offered by some accounts. Santander’s Edge account, for example, offers cashback on both debit card spend and direct debits, with up to £20 per month available, although there is a monthly charge of £3.
In addition, and perhaps more importantly for some, there is the bank’s customer service to be reckoned with.
Check out This is Money’s review of the best bank accounts currently available to help you decide.
THESE ARE THE FIVE OF MONEY FROM THE BEST DOMESTIC ACCOUNTS
Chase Bank will pay £1% cashback on spending for the first 12 months. Customers also get access to an easily accessible linked savings account that pays 3.1% on balances up to £250,000. The account is completely free to set up and is completely app-based. Also no costs when using the card abroad.
Nationwide’s FlexDirect account offers 5% in-credit interest for new members when they switch on a balance of up to £1,500. This rate is only valid for one year. The account is free.
HSBC Advance Account offer £200 when you transfer. You must initiate your switch, including at least two direct debits or standing orders, within 30 days and pay £1,500+ within the first 60 days. There are no monthly fees to maintain the account.
First directly will give to newcomers £175 when they switch accounts. It also offers an interest-free £250 overdraft. Customers must pay at least £1,000 within three months of opening the account.
NatWest’s Select account bill pays £200 when you transfer. The account has no monthly fees, but to be eligible for the £200 you must deposit £1,250 into the account and log into the mobile banking app within 60 days.
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