Clydesdale is offering a £150 thank you if you switch your main bank account to its Current Account Direct
What's the deal?
Following its debut £150 offering in November last year, Clydesdale’s Current Account cashback deal is back and offering the same sizable sum for those looking to switch their main bank account.
Switch to Clydesdale’s current account and you’ll receive £150, beating its nearest competitor’s (Halifax) cashback offer by £25.
Beyond the cashback, the Clydesdale account offers a decent and ongoing 2% AER (variable) on in-credit balances between £1 and £3,000, and charges 9.9% EAR on arranged overdrafts.
Who's it good for?
Cashing in on £150 for switching is a great option, arguably, even if you’re pretty content with your current bank. And if you are consistently £250 or more overdrawn (we'll explain this later) the 9.9% EAR on planned borrowing it's also competitive.
A few, yes. First off, to qualify for the £150, you need to use Clydesdale's Current Account Switch Service, which means completely closing down your old bank account.
You’ll also then need to pay at least £1,000 a month into the account to keep it running – and set up two direct debits.
The first £1,000 payment will need to be made within 31 days of your switch completing – this doesn't include any balance transferred from your old bank account, nor any other accounts you might have with Clydesdale or Yorkshire Bank.
The way the account is operated is a bit unusual too. It's a 'self-service' account which means you'll need to manage it by internet or phone. Only if a transaction can't be carried out this way can you use one of the bank's 292 branches.
And while the planned overdraft rate comes up trumps, if you go overdrawn by more than you've agreed, you'll pay a whopping 29.99% EAR!
What's the verdict?
The switching bonus offered by Clydesdale certainly makes it stand out from other deals on the market. A recent Financial Conduct Authority (FCA) review found that people who have switched their current account (under the 7-Day switch rules) were happy with the service. But it added that current account providers needed to do more to make customers aware of the benefits.
Our head of banking Kevin Mountford, said:
“A lot of banks and building societies are taking advantage of current poor rates on savings accounts by offering attractive in-credit interest rates on their current account deals instead. The result is that many current accounts now pay better rates than the majority of savings accounts.
“Add to that the fact you can now earn as much as £150 just for switching and it’s madness not to shop around for a better deal.”
That said, if building up a savings balance is high on your priority list, the M&S Current Account may be further up your priority list. Apply exclusively through MoneySuperMarket and you’ll land yourself a £125 voucher to spend in store – plus access to its Monthly Saver Account with a fixed rate of 6% AER/gross for 12 months.
Don't worry about all your bank account's standing orders, direct debits and incoming payments – the 7-Day switch service automatically reroutes them all. You even get a 36 month redirect on the old account, making sure that any cash sent to your old account still get to you.
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.