Free cash offers to change bank accounts vanish, but should you still switch?

23 April 2024 , 14:44

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A lack of cash incentives should not put people off finding a better current account deal, said one finance expert (Image: 2024 PA Media, All Rights Reserved)

Customers looking to switch their bank provider will find that several offers of free cash have vanished, according to a financial website.

A £175 switching offer from First Direct which launched on March 26 ended on Monday. Moneyfactscompare.co.uk said several other banks, including HSBC, NatWest, Lloyds Bank and Santander, have recently ended offers of cash to switch.

Some banks had been offering as much as £200. Rachel Springall, a 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)."

Ms Springall said the lack of cash incentives should not put people off finding a better current account deal. She said: "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."

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Banks are dangling various carrots to entice customers into switching accounts. Santander, for instance, is tempting 20 to 25-year-olds with a railcard offer, though it comes with its own set of terms and conditions.

Ms Springall remarked: "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."

Lawrence Matheson