What’s the deal?
Anyone who opens the TSB Classic Plus Account via MoneySuperMarket by June 28 will receive £100 cash. This will be paid in to your account 30 days after the switch is completed.
The cash reward is on top of the handsome 5.00% AER (variable) the account pays on balances up to £2,000.
The account also offers an optional £25 interest and fee-free overdraft in case you temporarily dip into the red.
To receive the £100 for switching, you’ll need to have applied for your account by June 28. However, there is a bit of leeway as you have an extra 30 days (until July 28) to complete the switching process.
In addition, you must:
-switch to TSB using the Current Account Switch Service
-transfer all active credits and debits from your old account and close it
-pay at least £500 in to your account within 30 days of opening it
-have at least two active direct debits on the account.
You’ll also need to be at least 18 years old and a UK resident.
To receive the 5.00% interest rate on the account, you’ll need to continue paying in £500 or more each month, and register for online banking.
Who’s it good for?
The £100 switching incentive is attractive, no matter what your situation. But the TSB Classic Plus Account is ultimately a great choice for savers with balances of around £2,000, thanks to its AER of 5.00% on cash up to that amount.
And, although some other current accounts offer the same 5.00% on bigger balances (the Nationwide FlexDirect Account pays 5.00% AER on balances up to £2,500 for 12 months), the advantage of the TSB account is the rate is ongoing – so no need to worry that the rate will drop 12 months down the track. That said, remember the rate is variable so could change at any time.
What’s the verdict?
Overall, if you want to switch your current account and you meet the qualifying criteria, the TSB Classic Plus Account is a good choice. Thanks to its £100 switching incentive as well as an ongoing 5.00% AER, this is certainly one of the more competitive offerings on the market.
However, if you tend to keep a larger balance in your account, there are other options to consider.
The Santander 123 current account, for example, pays 3.00% AER (variable) on balances between £3,000 and £20,000 (you’ll earn 1.00% on balances above £1,000 and 2.00% on balances above £2,000). You will also earn cashback up to 3.00% on some of your household bills. To qualify, you’ll need to pay in at least £500, have at least two direct debits on the account and pay a monthly fee of £2.
A number of other banks also offer cash incentives for switching, so these might suit you better. For example, both the Halifax Reward Current Account and First Direct 1st Account offer £100 for switching.
The Halifax account also pays £5 every month you pay in at least £750, pay out two direct debits and stay in credit. The First Direct account offers no in-credit interest but may suit you if you tend to dip into the red thanks to its £250 interest-free overdraft buffer and a relatively low interest rate of 15.9% after that. First Direct is also renowned for its excellent customer service.
Please note: any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.