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Switching your checking account to another bank could be even more lucrative now, as two more providers have announced incentives for those who join them.
From tomorrow anyone who switches to a TSB checking account can receive up to £200 for the first year.
Meanwhile, a new digital bank, Kroo, is trying to attract customers by offering what is now arguably the best credit rate on the market.
In recent months, several banks have launched generous deals for those willing to switch checking accounts.
Time to switch banks? TSB and Kroo offer incentives that can attract customers
Last week, Santander began offering a £200 cash incentive, matching a £200 offer from Lloyds and improving on a £175 offer from First Direct.
What does TSB offer?
Customers switching to TSBs from tomorrow for free Spend and save or £3 per month Spend & Save Plus current account receives £200, paid in two installments.
Switchers will receive £125 cashback if they sign up before March 3, and switch to TSB by March 24 using the Payment Account Switching Service.
They must set up at least two direct debits, use their debit card at least once and log in to internet banking or the TSB mobile banking app to receive the first installment in their account no later than April 21.
A further £75 will be deposited into their account on 31 October if they keep their account open, pay a minimum of £500 each month, make five debit card payments and make two direct debits.
Those who switch to TSB’s Spend & Save account can earn £5 a month cashback for the first six months, as long as they make 20 or more payments to their debit card each calendar month.
From 1 February, customers who switch to a TSB current account will receive a maximum of £200
TSB’s Spend & Save Plus account also offers £5 a month cashback, but without the six month time limit. It also does not charge when using a debit card abroad.
However, its benefits are offset by the £3 monthly cost of maintaining the account.
In addition to the switching and cashback offers, both of TSB’s checking accounts come with linked instant access savings accounts that pay 2.52 percent interest.
TSB allows customers to put money aside in up to five individual piggy banks, each with a maximum balance of £5,000 per pot – so £25,000 in total.
A person who puts away £10,000 could therefore earn £252 in interest over the course of a year.
While this doesn’t offer the best rates on the market, it is one of the best rates offered among other big names in the high street.
>> View the best low-threshold savings rates here
What does Kroo offer?
The digital challenger bank, Krooraises current account interest to 3.03 per cent on balances up to £85,000 from 1 February.
The rate change is likely to make it the best UK bank account for in-credit interest.
Nationwide offers 5 per cent interest to new members in the first year – but only on balances up to £1,500.
Someone who maintains a balance of £10,000 in their Kroo checking account could earn £303 over the course of a year, if interest rates remain the same.
Kroo is a digital bank founded in 2016. It obtained its full UK banking license earlier this year and is now launching its first current account
Cash held at the bank is fully protected by the UK Deposit Guarantee Scheme (FSCS), meaning client deposits are protected up to £85,000 per person.
In addition to the top interest rate, Kroo’s checking account allows customers to share, track, and split bills.
It also offers zero spending fees when using its debit card abroad and a lower overdraft APR than most major banks.
This is Money profiled the bank at launch last year, including a comparison with rivals Monzo and Starling.
The app can provide reminders when customers have an upcoming payment
Anyone who wants to use the Kroo deal does not have to use the switching service.
It can simply be used as a secondary bank account as there are no fees or requirements for setting up an account – unlike TSB.
However, to create an account, switchers must download the mobile app and go through a quick five- to 10-minute signup process.
Andrea De Gottardo, CEO of Kroo said: ‘We want to change the way banking is done and move away from the old profit extraction model.
With an interest rate of 3.03 percent, customers can grow their balance like a savings account, without the hassle of transferring money from an e-savings account.
“With our current account you can arrange your banking in one place without any strings attached.”
Kroo was awarded a full UK banking license earlier this year, the third bank to receive one since 2016.
Last year, Kroo was awarded the Best Newcomer 2021 Award from the British Bank Awards and the Banking Innovation Newcomer Award 2021 from the Finder Awards.
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