First Direct has ramped up its sign-up bonus to £125 as banks continue to use tempting cash carrots to entice customers away from rivals.
The move comes just weeks after the HSBC-owned bank launched a new perk that sees credit and debit card customers paid cashback for spending with certain retailers.
Current account switchers are currently spoilt for choice with a handful of eye-catching cash incentives offering up to £200 just for moving account.
But here’s our verdict on whether its worth snapping up First Direct’s new offer…
In your back pocket: First Direct will pay you £125 if you use the Current Account Switch Service to move accounts and deposit £1,000 within three months.
First Direct has offered a £100 switching bonus for several years, but now and again it adds to the amount for a limited time to snatch up extra customers.
It’s latest move sees the bank improving the cash bonus by £25 for anyone applying through comparison site, Money Supermarket.
As part of its offer the bank also promise to pay an additional £100 to anyone who is unhappy with their account and wants to leave within the first year (after the first six months).
To get the new £125 bonus switchers must use the Current Account switch service to move accounts and deposit at least £1,000 into the account within the first three months.
Switchers will need to act fast though as the boosted cashback amount is only available until December 11.
The account also includes a £250 fee and interest-free overdraft buffer – the largest on the market – and access to a regular saver paying 5 per cent interest.
The bank now also offers extra opportunities to earn cashback when you swipe your debit card with retailers signed up to its Visa Offers scheme.
These will changes each week but currently include the likes of Lidl, H&M, ESSo and Costa. Read more about the scheme here.
The telephone and internet-based bank frequently tops the charts for customer satisfaction.
What to watch out for:
The account is free if you pay in at least £1,000 per month.
However, if you don’t keep this up the account comes with a £10 monthly fee which makes it much less attractive.
If you do use the account to borrow, beyond the first £250 you will be charged 15.9 per cent EAR.
If you go beyond an arranged limit you will be charged an eye-watering £5 per day beyond a £10 buffer (capped at £80 per month).
Can your earn more elsewhere?
As mentioned above, HSBC currently offers the highest cashback bonus on the market at a total £200 if you switch and stay for a year. The offer lasts until November 26.
The account requires a higher monthly minimum deposit than most though at £1,750.
It comes with a free overdraft for the first six months and a range of exclusive products, including access to a five per cent regular saver.
The next most lucrative offer comes from M&S Bank’s current account.
It doesn’t strictly cashback deal though, instead it gives switchers up to £185 on one of its gift cards to be used in stores.
You get £125 upfront, followed by an extra £5 per month for up to a year as long as a minimum of £1,000 is paid into your current account and two Direct Debits remain active.
You also get 1 point for every £1 spent on your M&S debit card in store with the M&S Loyalty Scheme.
Halifax pays £75 to sign up and a £3 monthly reward on its Reward Account, it requires a £750 minimum deposit.
Co-operative Bank offers up to £5.50 a month in Everyday Rewards if you fulfill certain criteria plus it currently pays £125 to switch with a £25 donation to charity. You can read more about the incentive and our verdict here.
THIS IS MONEY’S FIVE OF THE BEST CURRENT ACCOUNTS