Cash back in your pocket
More and more of us are ditching loyalty to our banks thanks to a rise of cracking switching incentives. Here’s an idea of how much money you could get your hands on:
Yorkshire/Clydesdale Bank Current Account Direct
- Switching incentive: £150 cashback
- Additional benefits: The account pays 2% AER on credit balances up to £3,000, so long as you pay in £1,000 or more a month. And if you dip into your overdraft, the account offers a competitive rate of 9.9%.
- Switching incentive: £125 cashback
- Additional benefits: You’ll get £5 every month – so long as you stay in credit, pay in £750 a month and pay out two different direct debits. Combined with the £125 cashback, this means you could earn a total of £185 in the first year! On top of that, you can earn up to 15% cashback when you use your debit or credit card at certain retailers.
- Switching incentive: £125 to spend in-store (so long as you switch before the end of March)
- Additional benefits: The account offers an automatic £500 overdraft, the first £100 of which is interest free (a rate of 15.9% applies thereafter) – AND you’ll be able to earn points on your M&S debit card. You’ll also have access to the M&S regular saver account, paying a top rate of 6.00% AER fixed for 12 months.
Earn up to 5% interest
But taking advantage of cash offers like these shouldn’t be the only reason to switch your bank account. If you tend to carry a decent credit balance, seek out one of the growing number of deals that pay high rates of interest (and probably much better than your savings account). Try these:
Nationwide FlexDirect Account/ TSB Classic Plus
- Both pay: 5.00% AER
- Nationwide pays this rate on balances up to £2,500 but only for the first 12 months and on the proviso you pay in at least £1,000 a month. TSB’s Classic Plus account pays 5.00% up to a smaller £2,000 balance – BUT it’s an ongoing offer which can be serviced on just £500 a month.
- Additional benefits: Nationwide’s is a handy account if you tend to rely on your overdraft as it offers a fee-free overdraft for 12 months. But be aware that after the 12 months are up, you’ll fork out 50p per day on overdrafts over £10.
- Pays: Up to 3.00% AER
- You’ll receive 1.00% AER on balances between £1,000 and £1,999, 2.00% on balances between £2,000 and £2,999 and 3.00% on balances between £3,000 and £20,000. You’ll need to pay a £2 monthly fee, pay in at least £500 each month and pay out at least two direct debits each month.
- Additional benefits: The account also offers up to 3.00% cashback on some of your household bills, such as your water bill and council tax.
Kevin Mountford, head of banking at MoneySuperMarket, said: “Now that you can earn as much as £150 just for switching, it’s madness not to shop around for a better deal.”
Compare current accounts to find the right deal for 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.