Why there’s never been a better time to switch current account

Our in-house MoneySuperMarket data has revealed a whopping 165% increase in the number of current account applications since the start of the year.  So what’s driving this huge rise in demand?!

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%. 

Halifax Reward Current Account

  • 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. 

M&S Current Account

  • 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. 

Read how Barclays new fixed rewards plus cashback offers could net you £144 a year!

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 AccountTSB 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. 

Santander 123 current account

  • 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.

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