NatWest launches £200 bank account switching offer

NatWest has launched its highest-ever bank account switching incentive, offering new and existing customers £200 cash.

Anyone switching their main account to the bank’s Reward account or Select account will be eligible if they log into mobile banking and pay in at least £1,250.

The switch can be done through the Current Account Switch Service, meaning direct debits and standing orders are automatically transferred to the newly opened account within a week. 

NatWest’s offer is among the most generous bank account switching deals currently on offer. Last week, Santander ended its £200 cashback switching offer having launched it on 23 January.

First Direct continues to pay £175 to new joiners who open an account and deposit £1,000 within three months.

TSB is also currently offering £200 to switch account, of which £125 will be paid straight away followed by another £75 if they keep their account open until 31 October. 

They will need to pay in at least £500 each month, make five debit card payments and maintain two direct debits. 

Lloyds Bank is likewise offering a £200 switching bonus – but it’s only available for those opening one of its premium accounts.

These accounts offer add-ons such as breakdown cover and travel insurance — but also charge a monthly fee. 

Is NatWest’s £200 switching offer a good deal?

In terms of cold hard cash, NatWest’s offer looks the best in terms of the amount on offer, and the speed at which you’ll receive the money.

There are also very few hoops to jump through to be eligible. People need to apply online or via their mobile app, and switch a current account held elsewhere into a NatWest account.

They then need to deposit £1,250 into their new account and log into their mobile banking app within 60 days.

When they meet these conditions NatWest will pay £200 into the new account within seven days. 

However, it’s worth noting that anyone who has previously received a switching incentive from NatWest Group will not be eligible for this offer. The group also includes the Royal Bank of Scotland. 

Switchers can either opt for NatWest’s Reward account or Everyday account.

The Reward account gives customers an extra £4 per month if they set up two direct debits, and an additional £1 each month for logging on to online banking, totalling an extra £60 a year. 

However, it also comes with a £2 monthly fee. NatWest’s Select account has no monthly fee, albeit without any extra cashback either.

There also other benefits of holding a NatWest current account – namely exclusive savings accounts.  

NatWest is increasing the interest rate on its Digital Regular Saver account from 5.12 per cent to 6.17 per cent today.

This will be paid on balances up to £5,000, with savers able to stash away up to £150 every month. Anything saved above £5,000 will only earn 0.65 per cent.

Santander has unveiled Santander Edge, a new current account, which offers up to £240 cashback each year.

More than 1million customers are currently using this as a savings vehicle, according to the bank. 

Someone depositing the maximum £150 each month for 12 months will earn £60 in interest after one year.

Someone paying in £150 each month for the next two and half years, will earn £366 in interest during that time. 

This could make it a great place for someone looking to kick start a savings habit. However, it won’t necessarily be of much use to someone with a large amount of savings already built up.

For example, Barclays could be a better option as banking customers who sign up to its Blue Rewards scheme benefit from an exclusive easy-access savings deal. 

Switching bonus: Lloyds Bank is offering £200 cash to lure new customers into opening one of its new premium accounts

The Barclays Rainy Day Saver account pays 5.12 per cent interest on balances up to £5,000.

Someone stashing away £5,000 in the Rainy Day Saver on day one will earn more than £250 in interest after one year.

NatWest says customers holding its savings accounts will also be able to benefit from a new savings prize draw with a top prize of £10,000. 

NatWest savings customers can enter the prize draw to win £10,000 by turning on the bank’s Round Ups feature, which saves their change to the nearest pound every time they spend. 

There are 33 prizes to be won with three top prizes of £10,000 and 30 prizes worth £500.

Should you switch your current account?

Ultimately, people should avoid being blinded by the £200 switching incentive. Cash freebies are not the only factor people should be looking at when considering a new bank.

There are plenty of other perks often on offer, such as in-credit interest. Nationwide, for example, offers 5 per cent to new joiners on balances up to £1,500 while digital bank Kroo pays 3.03 per cent on balances up to £85,000.

Cashback is another perk offered by some accounts.  For example, Santander’s Edge account offers cashback on both debit card spending and direct debits, with up to £20 per month available, although there is a £3 monthly account charge.

Cash in hand: Despite cash bribes being regularly on offer, people often cite non-financial reasons when switching

There is 1 per cent cashback on essential grocery shopping and transport-based debit card spending. This is capped at £10 a month.

There is a further 1 per cent cashback on household bills paid via direct debit, which includes council tax, gas and electricity, mobile, landline, broadband and paid-for TV packages. Once again, this is capped at £10 a month.

Nationwide has also recently started offering 5 per cent cashback on supermarket shopping for its account holders.  

There are also overdraft limits and other benefits such as free cinema tickets that can make a difference for some people.

On top of that, and perhaps more importantly for some, there is the bank’s customer service to consider.

To help you decide, check out This is Money’s review of the best current account offerings available right now.